Robert Citrone Quotes
101 Robert Citrone Quotes (Robert K Citrone, Rob Citrone, Discovery Capital Management)
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[In May 1994.] I try to find investments that I feel are under priced in the marketplace, given their risk/reward trade-offs.
Robert Citrone
[In November 2010.] I learned, when you lose your conviction, get out.
Robert Citrone
[In May 1994.] Bond investors hate any mention of inflation because inflation can erode the value of their bonds' income payments, which are paid at a fixed rate.
Robert Citrone
[In May 1994.] Any time you invest overseas, currency risk can play a role. That's the risk that movements in the currency of the nation in which you're invested can hurt the returns on those investments. I can reduce currency risk by buying dollar-denominated bonds - those whose returns are directly tied to the U.S. dollar.
Robert Citrone
[In May 1994.] Governments in some countries… can be prone to sudden changes, which can disturb financial markets very quickly.
Robert Citrone
[In May 1994.] I can't really control political risk. But by doing my homework on the countries in which the fund is invested, I can try to limit it.
Robert Citrone
[In May 1994.] Information is key.
Robert Citrone
[In May 1994.] I invest using a `top-down' approach. That means I first analyze the investing climate within a given country.
Robert Citrone
[In May 1994.] Imagine a sheet of paper with a line down the middle. On one side, I list the risks. On the other, the potential rewards of the available securities.
Robert Citrone
[In February 2000.] We spend the majority of our efforts in the analysis of country risk…
Robert Citrone
[In February 2000 on China.] I think that is a country that is not well understood by the market. I believe the situation in China is much more difficult than even the most pessimistic forecasts. I would warn people to be careful on China.
Robert Citrone
[In February 2000.] We certainly try to make sure at all times that we have risk-reducing strategies in the portfolio.
Robert Citrone
[In May 1993 on Cemex bonds with Fidelity being on of the biggest buyers of the issue.] Is pretty well known and in a business that is easy to understand and has good cash flows.
Robert Citrone
[In May 1993 on Cemex bonds and the investment-grade rating given to them of triple-B-minus by Duff & Phelps.] Made a difference to a number of investors.
Robert Citrone
[In May 1993.] I think it’s very important that investors were willing to buy the debt without investment-grade ratings from the two agencies for either Mexico or the company. It shows you that investors believe the country will eventually be considered investment-grade whether or not the North American Free Trade Agreement gets approved.
Robert Citrone
[In June 1993 on Venezuela’s debt market during which Venezuela is onto it’s third president in six weeks.] Our frustration is that we couldn't buy enough, and rates came down too fast.
Robert Citrone
[In June 1993 on looking to repat a return of 12 to 15 % a year buying bonds with yields that don’t truly reflect the credit risk.] We view Mexico as investment-grade already.
Robert Citrone
[In July 1993 on a $1billion debt offering for PDV America the US arm of Venezuelan oil concern Petroleos de Venezuela SA.] There's political risk in Venezuela, but you still have the Citgo operations.
Robert Citrone
[In August 1993.] We are not convinced that long-term U.S. Treasuries are going to go to 5 percent, but with a much greater focus on fundamentals, two of the best countries on a risk-adjusted basis are Mexico and Argentina.
Robert Citrone
[In August 1993.] I am bullish for the long haul over one to three years, but the next six months are going to be choppy.
Robert Citrone
[In September 1993 on Tex-Mex bonds.] Who would carry the risk if money orders stop flowing into the bank, he asks. Though it seems likely that Banco Mexicano itself will guarantee payment, nothing is etched in stone yet. If the bank agrees or the special-purpose company agrees to guarantee payment, then perhaps the potential yields are worth it, he says. If investors are stuck with securities with no risk protection, then the potential yields might not justify the risk.
Robert Citrone
[In October 1993 on putting 10% of his fund into Brazil’s IDU bonds (IDU = Interest due and unpaid).] I believe they’re very mispriced in the market. A lot of people are confused by them.
Robert Citrone
[In November 1993.] The yield of Mexican treasury bills maturing in 28 and 90 days, known as Cetes, jumped by a percentage point. The 28-day Cetes yield rose to 14.5% and the 90-day yield rose to 14.25%. The 28-day Cetes had yielded as little as 12.47% three weeks ago. The currency devaluations had much to do with the yield jump, but a lot of it is Nafta.
Robert Citrone
[In November 1993.] The last time yields rose sharply, he says, was in spring 1992 when Ross Perot started criticizing Nafta. In April and May 1992, 28-day Cetes rose from 11% to 20%.
Robert Citrone
[In November 1993.] About half of all Cetes are owned by foreigners.
Robert Citrone
[In November 1993.] We've actually been increasing our overall exposure to Mexico. The overall economic fundamentals will continue to be strong, with or without Nafta.
Robert Citrone
[In November 1993 on Mexican central bank allowing the devaluation.] To be proactive rather than reactive.
Robert Citrone
[In November 1993.] The (NAFTA) vote sends an incredibly positive vote of support of all countries opening their markets. The investment starts in Mexico and broadens to Argentina and other countries like that. What NAFTA does is basically open investors eyes to a market that had in its own right been very attractive.
Robert Citrone
[In November 1993.] I’m especially bullish on the Mexican and Argentine Brady bonds, which are guaranteed by the U.S. Treasury and have yields of between 8 percent and 9 percent, substantially higher than the Treasury’s 30 year bond. The relatively stable Mexican peso also makes the short-term Mexican Cetes attractive, with yields around 12 percent. It had been as high as 20 percent at the start of the year.
Robert Citrone
[In January 1994.] In Venezuela during his election campaign, Mr. Caldera was being more populist than he really is. When he takes power next month, he will take a more rational position. His advisers say the VAT will not be removed.
Robert Citrone
[In January 1994 on emerging markets.] This is still an undervalued asset class.
Robert Citrone
[In March 1994 on Poland’s agreement to restructure $9 billion of debt.] I think the banks gave in. It wasn't a good deal for debtholders.
Robert Citrone
[In March 1994 on his fund investing in the debt of emerging market countries which] Have fallen a lot more than European and other bond markets.
Robert Citrone
[In March 1994 on half his fund being invested in Mexican and Argentine bonds.] We’re back now to interest rate spread levels we had before the ratification of the North American Free Trade Agreement.
Robert Citrone
[In March 1994.] Fidelity is working to make the new fund’s portfolio holdings available on a regular basis.
Robert Citrone
[In March 1994.] I didn’t have much trouble selling emerging-market debt to meet redemptions, but Fidelity is thinking of imposing a redemption fee on the fund to discourage short-term trading.
Robert Citrone
[In March 1994 on Manuel Camacho announcing that he had ruled out a run for the presidency this year.] We are going to see an opening of the political system like we have never seen before.
Robert Citrone
[In April 1994.] When other countries have converted to Brady bonds in the past, it has produced gains of 15% to 25%.
Robert Citrone
[In April 1994.] In order to reduce currency risk, I have made certain that around 70% of my holdings are valued in dollars instead of foreign monies. And to limit interest-rate risk, some 40% of assets are in floating-rate bonds, which are less subject to principal loss than fixed-rate debt if rates rise.
Robert Citrone
[In April 1994. on assets being steady as new investors have come in.] Hoping to catch the bottom.
Robert Citrone
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