Question

Jarvis the portfolio manager of the Moonshooter hedge fund, which specializes in momentum technology stocks, decides to change tack after years of sizzling returns. He asks you to evaluate a small packaging company, Bemis, ticker BMS, as an investment idea. You can research Bemis as it is publicly traded. In an essay, explain what benefits BMS could bring to Moonshooter fund from a return and risk perspective? What are the drawbacks associated with Bemis as well?

Answer 1

• In order to cushion portfolio, it is important for investors to exit underperforming stocks, which may dent their returns.
• Global manufacturer of flexible packaging products and pressure sensitive materials Bemis Company Inc.
• BMS seems to be plucked out of investors stock garden immediately.
• BMS benificial for the invesment with high risk and higher return policy as per market structure.
• when the price of stock fall down the demand is high for purchase as compared to sales.