Applied Industrial Technologies Inc

NYSE:AITUnited States

I was very interested in doing this for some time. I knew I needed to create a chief investment officer [post] that wasn't a portfolio manager, so Chris Clark [now chief executive] and Francis Gannon became that. Before, I held both roles. The beauty of putting in a different layer of management is that they can think through long-term issues in a way I was not focused on. We also have gone to a team approach. To be in the competitive institutional world, you need to demonstrate to outside observers substance. Solo investors are a thing of the past. What is your advice for investors on how to avoid value traps? You can never know too much about an investment. We've always taken pride in the holistic nature of our approaches. Whether we're looking at beaten-down companies that appear radioactive to others or at high-quality businesses, due diligence needs to be done in three dimensions -- examining the financials and operational record, talking to the entire ecosystem, and looking at how the business and stock have performed over long-term periods, particularly in different market, industry, and economic climates. Even the best get things wrong on occasion, so diversification is critical. What are your plans as you take a step back? I'm going to continue to invest. I also have activities in the noninvestment world in different communities, including economic development. Towns that don't have a Main Street are going to be left to wither, and I believe it's critical to bring arts, culture, and new businesses to them. We are also working on restoring local movie theaters in several small towns. Thanks, Chuck. Write to Reshma Kapadia at reshma.kapadia@barrons.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. Corrections & Amplifications JPMorgan Chase took over First Republic Bank. A previous version of this article incorrectly said Republic National Bank was absorbed. (END) Dow Jones Newswires September 09, 2024 13:09 ET (17:09 GMT)

I was very interested in doing this for some time. I knew I needed to create a chief investment officer [post] that wasn't a portfolio manager, so Chris Clark [now chief executive] and Francis Gannon became that. Before, I held both roles. The beauty of putting in a different layer of management is that they can think through long-term issues in a way I was not focused on.

I was very interested in doing this for some time. I knew I needed to create a chief investment officer [post] that wasn't a portfolio manager, so Chris Clark [now chief executive] and Francis Gannon became that. Before, I held both roles. The beauty of putting in a different layer of management is that they can think through long-term issues in a way I was not focused on. We also have gone to a team approach. To be in the competitive institutional world, you need to demonstrate to outside observers substance. Solo investors are a thing of the past. What is your advice for investors on how to avoid value traps? You can never know too much about an investment. We've always taken pride in the holistic nature of our approaches. Whether we're looking at beaten-down companies that appear radioactive to others or at high-quality businesses, due diligence needs to be done in three dimensions -- examining the financials and operational record, talking to the entire ecosystem, and looking at how the business and stock have performed over long-term periods, particularly in different market, industry, and economic climates. Even the best get things wrong on occasion, so diversification is critical. What are your plans as you take a step back? I'm going to continue to invest. I also have activities in the noninvestment world in different communities, including economic development. Towns that don't have a Main Street are going to be left to wither, and I believe it's critical to bring arts, culture, and new businesses to them. We are also working on restoring local movie theaters in several small towns. Thanks, Chuck. Write to Reshma Kapadia at reshma.kapadia@barrons.com This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. Corrections & Amplifications This article was corrected on Sept. 9, 2024. JPMorgan Chase took over First Republic Bank. A previous version of this article incorrectly said Republic National Bank was absorbed. (END) Dow Jones Newswires September 05, 2024 01:00 ET (05:00 GMT)