r u n n i n g h e a d e r 1

WITH A LEXANDERR G REEN

SEPTEMBER 2020, VOLUME 33, NO. 9

The World’s Most Undervalued Opportunity

Unloved, Under-Owned... and a Table-Pounding “Buy” Today
Alexander Green, Chief Investment Strategist, The Oxford Club

Dear Member, Setting the Stage for

It’s tough to find many bargains in today’s Remarkable Returns 
global markets.  Most investors are aware that the
decade ending in 2019 was one of the
High-grade bonds have microscopic yields, if they
best ever for the U.S. stock market. 
aren’t actually negative. And stocks have taken a
considerable bounce off the March bottom.  From January 2010 through December
2019, the S&P 500 returned 13.5% annually. 
Yet there is one asset class that remains an
unalloyed bargain. And a sector within that class is If you go back and include 2009 as well, the 11-year
cheaper still.  annualized return was a mouthwatering 14.6%.
That’s much better than the S&P 500’s long-term
In fact, I consider it the world’s most undervalued
annual return of about 10%.
investment opportunity. And, as you’ll soon see,
that’s no hyperbole. But what investors may not remember is that the
decade from January 2000 through December 2009
Over the last decade, growth stocks have way was one of the worst on record.
outperformed value stocks. 
The Dow hit a peak of 11,722.9 in January 2000
U.S. stocks have substantially outperformed and bottomed out at 6,547.0 in March 2009,
international stocks. And developed markets have 31.5% lower.
greatly outperformed developing markets. The S&P 500 also delivered a negative return
As a result, the planets have aligned and the over that period. And the Nasdaq declined a
companies with the most upside potential now breathtaking 66.5%.
trade at the most appealing valuations and with the In short, a decade of negative returns set us up for a
highest yields of any stocks in the world.  decade of extraordinary returns.
That gives you huge upside potential with limited No doubt many investors wish they could turn back
downside risk. the hands of time and load up on those stocks when
they were cheap.
And it’s why an exchange-traded fund (ETF) that
targets these super bargains is the newest addition to Alas, that’s not possible. 
our Oxford Trading Portfolio. However, you have a very similar opportunity today
Please read on...
memo from the chief
in the emerging markets of Asia, Eastern Europe
and Latin America.  up from less than half a decade ago and just 23%
From January 2010 through December 2019 – that
period of blockbuster U.S. equity returns – the
MSCI Emerging Markets Latin America Index
returned -29.4%. As with the U.S., it was a rare
down decade.  it, but emerging markets today are the world’s
And just as U.S. stocks were ultra-cheap in 2009, so
are emerging market stocks today.  accumulation.
Here’s a chart that shows the performance of
emerging markets versus the U.S.
Emerging Markets vs. U.S.
■ MSCI Emerging Markets Index ■ S&P 500
Total gains
250%
200%
150%
100%
50%
0%
2011 2013 2015 2017 2019
Source: Bloomberg
As you can see, emerging markets are quite the
bargain at the moment.
However, cheap doesn’t necessarily mean attractive.
Investors should rightly question whether these
emerging markets deserve a place in their portfolios.
And the answer is a resounding yes.  That’s the equivalent of creating a new New York
Let me start by making the macro case...
Emerging markets make up more than 160 – or 80%
– of the approximately 200 nations in the world.
These countries contain 77% of the world’s
landmass and 85% of its population.
China and India alone have over 2.7 billion
citizens, or more than 35% of the planet’s
population of 7.8 billion.
And here’s something that may surprise you.
2
These countries represent 59% of total global GDP,
two decades ago.
Driving Global Growth
Investors in developed markets may not realize
primary drivers of both global growth and wealth
 
They comprise the dominant share of the world’s
population and natural resources and the largest
reservoir of future consumers. 
Most Americans and Europeans consider these poor,
backward countries.
And most of them are indeed less affluent and less
technologically advanced than Western nations. 
But they are rapidly catching up. 
Most developing countries have evolved from
authoritarian governments to democracies and from
state-controlled economies to capitalist ones. 
Global economic inequality is falling, not rising.
And it is falling because the world’s underclass is
getting richer faster than everyone else.
A major cause is increasing urbanization, a key
driver of economic development. 
Every day, approximately 160,000 people in emerging
markets move from the countryside to cities in search
of better jobs, living conditions and pay. 
City every two months.
The people in these nations have made major strides
in education levels, infant mortality, life expectancy
and other key metrics. 
And they want everything that we already take
for granted in the West: homes, cars, appliances,
computers, smartphones, credit cards, health
insurance, financial services, designer clothing, etc. 
In short, the biggest economic development of the
next few decades will be the emergence of a new
“world middle class.” 
memo from the chief 3

In the months and years ahead, there will be The Emerging Markets High Dividend Fund
fortunes made meeting the wants and needs of these covers 17 different emerging markets and gives
6.6 billion individuals.  broad multicap exposure: large caps, midcaps and
Yet when I talk to most small caps.
Americans about how The fund has a strong
much exposure they have
to emerging markets
“I’ve recently uncovered a value tilt. 

in their portfolios, vehicle that gives you broad The stocks tend to be
the typical answer is
diversification among the most conservative, defensive
somewhere between zero companies with low sales
and 5%. undervalued opportunities in and earnings ratios and
That’s far too little.  this market.” high dividends. 

Our Oxford Club asset WisdomTree reconstitutes

allocation model suggests
that you have at least 10% of your liquid assets in
this sector.  distributions and are in the top 35% of emerging
That’s why we own the Vanguard Emerging
Markets Index Fund (VEMAX) in our Gone
Fishin’ Portfolio, Templeton Emerging Markets
Fund (NYSE: EMF) and Templeton Dragon Fund
(NYSE: TDF) in our Oxford All-Star Portfolio,
ZTO Express (NYSE: ZTO) in our Oxford Trading
Portfolio, and LexinFintech (Nasdaq: LX) in our
Ten-Baggers of Tomorrow Portfolio.
However, I’ve recently uncovered a vehicle that
gives you broad diversification among the most
undervalued opportunities in this market, along
with an attractive yield of 5.6%.
It’s the WisdomTree Emerging Markets High
Dividend Fund (NYSE: DEM).
A Case for Contrarian Courage
WisdomTree is a major ETF sponsor with more
than $63.5 billion in assets under management.
(Although there is currently less than $2 billion in
this particular fund.)
the portfolio each
year to make sure the companies are still making
markets companies by dividend yield. 
The chart shows that emerging market valuations
are inexpensive relative to U.S. equity markets. 
But this ETF is truly the cheapest of the cheap. 
The fund’s average holding has a price-to-earnings
ratio of 7.9, a price-to-sales ratio of 0.6, a price-to-
book value of 0.87 and a 5.6% yield.
The S&P 500, by contrast, has a price-to-earnings
ratio of 22.6, a price-to-sales ratio of 2.1, a price-to-
book value of 3.3 and a dividend yield of 1.8%.
Put differently, the stocks in the Emerging Markets
High Dividend Fund could triple and they would
still be cheaper than the S&P 500.
It takes courage to be a contrarian and buy assets
like these that are out of favor. 
But history shows that is how longer-term investors
earn higher returns with less risk. 

The firm specializes in both active and passive
investment strategies and constructs portfolios that
are not market cap weighted.
(Market cap weighting is why the top 10 stocks in
the S&P 500 make up approximately a quarter of
the index.)
It’s also why I view this emerging markets ETF as the
world’s most undervalued investment opportunity.
Action to Take: Buy WisdomTree Emerging
Markets High Dividend Fund (NYSE: DEM) at
market. And use our customary 25% trailing stop to
protect your principal and your profits. n
b u i l d i n g w e a lt h
Never Take Investment Advice From a Hedgehog
Nicholas Vardy, Quantitative Strategist, The Oxford Club
Pundits make predictions on TV and other
media outlets every day. Whether they’re about
the short-term direction of the stock market, the
future price of oil or gold, or the outcome of
November’s presidential election, we are inundated
by predictions daily.
Here’s what’s ironic... The accuracy of these
predictions is rarely, if ever, measured.
Enter Philip Tetlock, a social psychologist at the
University of Pennsylvania.
He has made it his life’s work to test experts’
predictions across a wide range of subjects.
And the results aren’t flattering.
Tetlock’s research concluded that most pundits are as
accurate in making predictions as a chimpanzee is at
picking stocks by throwing darts at the pages of
The Wall Street Journal.
The good news is that Tetlock has identified a
particular kind of expert you should listen to.
Finding the right kind of expert is especially
important in the world of investing. You and your
family’s financial health and wealth depend on it.
The Fox and the Hedgehog
Tetlock divides the world of pundits into two types:
“foxes” and “hedgehogs.”
Tetlock borrowed this distinction from Oxford
philosopher Isaiah Berlin, whose famous essay
centered on the ancient Greek quote “The fox
knows many things, but the hedgehog knows one
big thing.”
Most prevalent among pundits is the hedgehog.
Hedgehogs are professional commentators. They
dominate the airwaves and the speaking circuit.
4
They offer entertaining, broad
predictions, but these predictions
are built around one “big idea.”
Hedgehogs offer simple answers to
complex questions.
They are extremely confident
in their abilities, even when their
predictions are wrong. This unwavering self-
assurance makes them even more convincing.
Their simple messaging also means they do well
on TV.
As Tetlock points out, hedgehogs are on TV not
because they’re good at predicting... but because
they’re good at telling a story.
Let’s now turn to foxes.
The contrast with hedgehogs could hardly be
greater. Foxes have a sophisticated, self-critical style
of thinking. They are concerned with possibilities
more than certainties.
They are “actively open-minded thinkers” who
keenly study views with which they disagree. They
understand that even views they disagree with can
improve the accuracy of their predictions.
They are rarely exuberant. They readily admit
their errors.
That’s why you’ll rarely see a fox on TV. Their
opinions are too measured, too complicated and too
subtle to summarize in a sound bite.
Hedgehogs vs. Foxes
Smackdown: Who Is Right?
In 2011, the U.S. intelligence community launched
a tournament to identify cutting-edge methods to
forecast geopolitical events.
Many were called upon, but only one was chosen.
b u i l d i n g w e a lt h
The undisputed victor in the contest was the
Good Judgment Project, led by none other than
Tetlock himself.
He identified the following characteristics of good
predictors...
• Philosophic outlook: cautious, humble and
nondeterministic
• Thinking style: open-minded, intelligent,
curious, reflective and numerate
• Forecasting style: pragmatic, analytical,
probabilistic, thoughtful updaters and
intuitive psychologist
• Work ethic: growth mindset and grit.
Tetlock found that only about 2% of experts were
“superforecasters.” Members of this rarefied group
were 30% more accurate than intelligence analysts
with access to classified information.
What does this tell us about hedgehogs and foxes?
Tetlock found that hedgehogs’ predictions were
no better than random ones. Foxes’ intellectual
flexibility made them better predictors overall.
You’ll never find foxes making big and bold
headline-grabbing predictions like hedgehogs do.
Tetlock found “a perversely inverse relationship
between... good judgment... and the qualities that
the media most prizes in pundits.”
As a TV producer at CNBC once told me,
“[Hedgehogs] simply make for good TV.”
My Favorite Hedgehog Story
Hedgehogs’ Achilles’ heel is their hubris and
closed-mindedness. Tetlock cites the example of
Stanford professor Paul Ehrlich, author of The
Population Bomb.
Ehrlich famously predicted hundreds of millions
of people would die of starvation in the 1970s. I
recall seeing copies of Ehrlich’s book in my grade
5
school classroom in Pittsburgh. Our teachers were
preparing us for the impending Armageddon.
Ehrlich was a quintessential hedgehog. He made
dozens of appearances on Johnny Carson’s Tonight
Show. (You can still watch some of them on
YouTube.)
Of course, the population bomb never exploded.
But that didn’t convince Ehrlich to change his mind,
as the story below illustrates.
Ehrlich made a bet with business professor Julian
Simon that five commodities would increase in
the 1980s because of massive starvation-induced
shortages.
Ehrlich lost the bet. Yet he defiantly compared
Simon to a man who jumps from the Empire State
Building and, as he passes onlookers on the 50th
floor, announces, “All’s well so far.”
Hedgehogs are never wrong. They are just early.
Investing With Hedgehogs:
Caveat Emptor
So what does all this talk of hedgehogs and foxes
have to do with investing?
It turns out the investment world is chock-full
of hedgehogs.
They include gold bugs, “China miracle” types and
the techno-optimists of Silicon Valley.
They are “doomsters” (Jim Rogers, Peter Schiff and
Nouriel Roubini), “boomsters” (Elon Musk and
Peter Diamandis) or both (Harry Dent).
Much like Ehrlich, these hedgehogs have gotten a
lot of things wrong.
Gold did not go to $5,000 an ounce in 2008.
Investors made a lot more money investing in the
U.S. than they did investing in the China miracle.
The global financial crisis of 2008 did not morph
into a second Great Depression.
continued on Page 7
b e yo n d w e a lt h 6

The True Rulers of the Planet

Alexander Green, Chief Investment Strategist, The Oxford Club

As I write, it’s summertime. A Fondness for Beetles

That makes it easy to hate bugs right now.  And they are amazingly diverse.
It’s not just the occasional bite or sting or weekend We have identified 290,000 species of beetles, for
picnic invasion. Insects devour about a third of the example, yet millions more remain unclassified. 
world’s food crops each year. There are more types of insects than any kind of
They destroy wooden buildings, ruin stored grain animal – and more types of beetles than any
and accelerate the process of decay.  other insect. 
Mosquitoes – which transmit diseases such as the Once, when the distinguished British scientist J.B.S.
West Nile virus, malaria and dengue fever – kill Haldane was asked by a group of theologians what
almost 2 million people annually. one could conclude about the nature of the creator
from a study of the creation, Haldane replied, “An
Even tsetse flies are responsible for 10,000 annual inordinate fondness for beetles.”
deaths. And bees kill more people each year than all
venomous snakes combined.  We spend billions of dollars a year on pesticides and
extermination services. 
Insects are our biggest competitors for food, fiber
and other natural resources. Yet insects also make us (and save us) billions. 
Economists estimate that insects consume or A study by Cornell University entomologist John
destroy 10% of gross national product in large, Losey found that bugs add $57 billion a year to the
industrialized countries and up to 25% in some U.S. economy.
developing nations. Dung beetles save ranchers some $380 million a
Yet before you shoo, squash or swat that little fellow year by decomposing waste and helping return
in front of you, pause to recognize that insects are nutrients to the soil, reducing the need for fertilizers.
also our cherished allies. Indeed, we could not exist Since they prey on each other, bugs also provide
without them.  more than $4.5 billion in agricultural pest
They were here 400 million years before us and, in control. (Hey, it’s organic.) 
many ways, still rule the planet.  And since insects offer themselves up daily as food
Insects dominate the temperate zones, making up a for native wildlife (from rainbow trout to ring-
significant percentage of the Earth’s total biomass. necked pheasants to black bears), they also support a
$50 billion recreation industry in our national parks
There are around 200 million insects for every and wilderness areas. 
person alive today – approximately 9 billion per
square mile of habitable land. Ants alone, of which Insects are helping solve world hunger, too. 
there may be 10 thousand trillion, weigh roughly as In the U.S., more than 2.8 million bee colonies
much as all 7.8 billion human beings.  produce over 78,000 tons of honey annually. 
We have formally classified about 1 million species Total global honey production is estimated at
of insects so far. And we’re only just getting started. 2 million tons a year. Plus, many in non-Western
Entomologists estimate that the total number ranges countries dine on locusts, ants, termites, caterpillars,
between 4 million and 30 million. grasshoppers and grubs. 
b e yo n d w e a lt h
According to informed sources (braver than me),
beetles taste like apples, wasps like pine nuts and
worms (not really insects) like fried bacon.  tomorrow, it is unlikely that a single insect
Advocates point out that bugs are high in protein
and other nutrients.
For instance, a 100-gram portion of grasshopper
meat contains 20.6 grams of protein, just 7 grams
less than an equivalent portion of beef.  He points out that a majority of flowering plants,
In addition, insect farming requires less water,
less feed and less land per calorie than traditional
livestock farming. It also produces much lower
greenhouse gas emissions.
The ecological services that insects provide are
simply incalculable.
Ladybugs, mantids and other predatory insects eat
aphids and other insects harmful to plants.
Termites – while unwelcome behind your walls
– decompose the wood in forests and help bring
nutrients back to the soil.
Many species of flowering plants owe their very
existence to insect pollinators.
Honeybees, in particular, are responsible for 80%
of the pollination in the United States, affecting
some $15 billion in crops each year, including
almonds, apples, cherries, blueberries, cucumbers,
squash and melons.  efforts at eradication. And they will very likely out-
We Need Them, They
Don’t Need Us
In The Creation: An Appeal to Save Life on Earth,
Pulitzer Prize winner and Harvard biologist E.O.
Wilson writes...
Never Take Investment Advice From a Hedgehog continued from Page 5
Hedgehogs remind me of old-time, late-night
TV preachers.
They pull you in with their fire and
brimstone predictions. But as with these
preachers’ pleas for money, listening
7
People need insects to survive, but insects do not
need us. If all humankind were to disappear
species would go extinct, except three forms of
human body and head lice... But if insects were
to vanish, the terrestrial environment would
soon collapse into chaos.
deprived of their pollinators, would cease to
reproduce. Birds, reptiles and mammals, denied the
foliage, fruits and insect prey on which they feed,
would follow the plants into oblivion. 
The soil would remain largely unturned because
insects, not earthworms as generally supposed, are
the principal renewers of the soil. A decline in soil
quality would herald the end of wind-pollinated
grasses and eventually the trees. Before long, human
populations would experience widespread starvation
and soon disappear.
Insects’ small stature may prevent them from
being recognized as masters of the planet. But
their importance and durability are beyond
dispute. Insects witnessed the rise and fall of the
dinosaurs. They have survived at least four major
cataclysms that resulted in planetwide extinctions. 
They continue to thrive despite mankind’s best
survive us. 
Ours is a symbiotic relationship, but a skewed
one. We need the insects. They don’t need us.  
That leads to an odd and humbling thought: Just
who is really bugging whom? n
to hedgehogs could cost you much of your
hard-earned cash.
My recommendation? Never take investment
advice from a hedgehog. Stick with the
measured approach of a fox instead. n
 The Oxford Portfolio
by Alexander Green
The market has had a terrific rally since it
bottomed in late March. So it’s only natural to
believe that the ride will get bumpier at some point.
Fortunately, we own plenty of stocks in our
portfolios that make it easy to sleep at night.
Take CVS Health (NYSE: CVS), for example.
Transforming U.S. Healthcare
CVS is one of the nation’s leading healthcare
companies with more than 9,900 stores. Nearly
70% of Americans live within 3 miles of one of
its locations.
It is a leading pharmacy benefits manager with more
than 102 million plan members. And it serves an
estimated 38 million people with health insurance
provided by government or private plans, including
those offered by Aetna, which it bought in 2018.
CVS also operates more than 1,100 walk-in
MinuteClinics in its stores. And it is creating new
store designs with expanded healthcare offerings,
including in-house blood work.
The company has essentially purged its stores of
low-margin and slow-selling items to make room for
lucrative healthcare services.
It is capturing patients who can’t get quick
appointments with their primary care doctors – or
don’t want one because of the pandemic – and those
who use emergency rooms for routine care.
This means newly acquired Aetna will save tens of
millions of dollars annually that it won’t have to
shell out for routine doctor and hospital visits.
CVS also allows customers to refill prescriptions
through an app and pick them up at any store
location. And it delivers medications directly to
patients’ homes with an electronic prescription from
their doctor.
REVIEW
There was more than a little skepticism after CVS
merged with Aetna.
However, the firm has beaten analysts’ estimates in
each of the last four quarters. In the most recent
one, CVS reported that earnings soared 41% on an
8.5% increase in revenue.
Yet the stock remains inexpensive at less than 12
times earnings and just nine times Wall Street’s
consensus estimate for the next 12 months. You’ll
also earn a 3% dividend yield here.
CVS intends to improve the quality of healthcare
and reduce costs through health and wellness
services, site-of-care management, and tighter
integration of pharmacy and medical claims.
And as more investors realize what’s happening here,
it will be reflected in the share price.
The stock remains an exceptional buy at
current levels.
Treating Cancer... With Electricity
I also like the prospects for Novocure
Ltd. (Nasdaq: NVCR), a member of our Ten-
Baggers of Tomorrow Portfolio.
And my advice is to load up while it’s still cheap.
The company founder, Yoram Palti – a professor
of physiology and biophysics at the Israel Institute
of Technology – dreamed of destroying cancer cells
with electric fields while sparing healthy tissue.
No one had any idea what he was talking about.
So he set up a laboratory in his basement to explore
this potential treatment for cancerous tumors.
What Palti discovered is that alternating electric fields,
when applied at specific frequencies, can not only
stop cancer cells from dividing but kill them outright.
He called this innovative cancer treatment Tumor
portfolio review
Treating Fields. And he used the discovery to found
Novocure in 2000.
The firm is now an international oncology leader
with nearly 600 employees, operations in the U.S.,
Europe and Asia, and $380 million in annual sales.
In 2011, the company launched Optune – its Tumor
Treating Fields delivery system – for glioblastoma, the
most common primary brain cancer and one of the
most difficult cancer types to treat.
The FDA approved the device in 2015, and
Novocure received subsequent approvals for next-
generation upgrades in 2016 and 2019.
Today it is sold in the U.S., Germany, Austria,
Switzerland, Sweden, Israel, China and Japan.
Optune uses low-intensity electrical fields to treat
both glioblastoma and mesothelioma, a tumor of
the tissue that lines the heart, lungs, stomach and
other organs.
However, studies are underway with other brain
cancers, as well as pancreatic, ovarian, liver and
lung cancers, with key results due over the next
few months.
Novocure customizes its technology to target
each cancer type. And its devices work in patients
undergoing other forms of treatment, including
radiation, chemotherapy and immunotherapy.
Each of these other three methods has advantages
and disadvantages. But a combined approach
attacks the tumors on multiple fronts – and boosts
patients’ responses.
Why is that important? Because you want to
hit the deadliest cancers with everything in
your arsenal.
Novocure is just turning the corner on profitability.
Sales are growing at a 39% annual rate. And I
estimate that earnings will soar from $0.18 a share
this year to nearly a dollar a share in 2021.
As doctors become better educated about the
effectiveness of the Optune system, sales and profits
at Novocure will soar. And so should the stock.
9
Saving Lives and
Generating Profits
NeoGenomics (Nasdaq: NEO), another member
of our Ten-Baggers of Tomorrow Portfolio, also
appears undervalued. 
NeoGenomics is the world’s leading oncology
testing company for doctors, pathologists and
hospitals, serving more than a half-million patients
each year.
Cancer is primarily a disease of old age, so our
increasing longevity is driving cancer incidence.
The proliferation and complexity of new therapies
are also driving sales, especially since follow-up
testing increases survival rates. And the burgeoning
oncology drug pipelines will increase future testing
as well.
With more than 10,000 baby boomers turning 65
every day, future growth here is practically assured.
NeoGenomics has “outfocused” its larger rivals by
concentrating entirely on cancer testing rather than
diversifying more broadly. Precision medicine is now
a critical component in controlling the disease.
NeoGenomics’ comprehensive laboratory system
gives it the ability to interrogate a blood-based
cancer or solid tumor by as many means as are
necessary to reveal biomarkers that expose the
disease’s vulnerability to different therapies.
And the company’s rapid test development cycle
gives doctors and patients the answers they need as
quickly as possible.
Looking ahead, I estimate that earnings per share
will rise from breakeven this year to approximately
$0.45 in 2021.
According to the National Cancer Institute, more
than 1.7 million new cases of cancer are diagnosed
in this nation each year. But the good news is the
overall death rate from cancer is falling.
There are more than 15.5 million cancer survivors
in the U.S. And that number is expected to rise to
20.3 million by 2026.
portfolio review
NeoGenomics is playing a key role in this. It is the
only pure-play, publicly traded oncology diagnostics
lab in the country. And its shares are well worth
buying at current levels.
Foxconn Puts On an
Impressive Rally
Everyone marveled at Apple’s blowout quarter a few
weeks ago. That is good news indeed for our special
situation stock, Hon Hai Precision Industry  stock remains a superb long-term holding.
(OTC: HNHPF), better known as Foxconn
Technology Group.  Moving Livongo to a “Hold”
Based in Taiwan, Foxconn is the world’s largest
contract electronics manufacturer – and third-largest
technology firm by revenue.
Its customers span many cutting-edge and highly
profitable sectors – computers, smartphones,
consumer electronics, retail, lodging, automobiles,
medicine, travel, banking and e-commerce.
Foxconn is the primary assembler of Apple’s
iPhones and iPads, and also manufactures the
Amazon Kindle, Nintendo 3DS and Wii, Sony
PlayStation, Microsoft Xbox, and BlackBerry – to
name just a few.
Its client list reads like a Who’s Who of tech
industry heavyweights, including Amazon,
Microsoft, Intel, Google, Dell, Cisco, Nvidia,
Huawei, Xiaomi and Apple.
Apple is the firm’s biggest client, providing
approximately half of its annual revenue.
However, the firm is now gearing up for expanded
investment in three key areas: electric vehicles,
robotics and smart medical devices.
Foxconn sees these as drivers of future profit as
these industries are expected to experience 20%
compounded annual growth over the next few years,
with total industry sales hitting $1.4 trillion by
2025. Foxconn expects to capture 10% of this – or
$140 billion annually.
10
Meanwhile, it keeps signing new contracts
every week. And this fall, Apple will roll out a new
iPhone with 5G capabilities. That should be a
particularly hot seller.
Foxconn’s dominance as the world’s largest contract
manufacturer is not likely to be challenged.
Its patents form a technological “moat” around the
company’s core business and profit margins while
also allowing it to explore new opportunities. The
Within days of my Livongo Health (Nasdaq: LVGO)
recommendation in the last Communiqué, Teladoc
Health (NYSE: TDOC) agreed to buy the company
in a cash and stock deal valued at $18.5 billion.
Under the terms, which have been approved by both
boards, Livongo Health shareholders will receive
0.592 shares of Teladoc Health plus $11.33 in cash
for each share they hold.
However, regulators may not approve the deal.
Shareholders may not either. And, obviously, the
value of the final payout depends on what happens
to the price of Teladoc Health before the deal closes.
I’m inclined to wait and watch Livongo for a while,
as there are various scenarios that could play out.
That’s why the stock is a “Hold” in our Oxford
Trading Portfolio for now. We don’t generally see
such a dramatic development within days of a
new recommendation. But in this case, it appears
entirely positive.
Time to Sell Momo
Finally, I suggest you sell Momo Inc. (Nasdaq:
MOMO) in our Ten-Baggers of Tomorrow Portfolio
at market.
Our strategy is based on the recommended
companies beating revenue estimates, and the firm
lagged in the most recent quarter. I will have a
replacement stock for you soon. n
 THE OXFORD TRADING PORTFOLIO
An active and diversified portfolio of the market’s most compelling opportunities.

REC. TRAILING TOTAL

COMPANY/SYMBOL REC. PRICE CURR. PRICE RATING
DATE STOP GAINS

CVS Health (NYSE: CVS) Mar-20 $53.65 $65.71 Buy $52.97 24.3%

Genmab A/S (Nasdaq: GMAB) Mar-20 $20.41 $36.05 Buy $27.41 76.6%

Livongo Health (Nasdaq: LVGO) Aug-20 $113.17 $121.41 Hold $108.40 7.2%

Paypal (Nasdaq: PYPL) Mar-20 $95.12 $193.32 Buy $153.07 103.2%

Vertex Pharmaceuticals
May-20 $256.11 $268.73 Buy $227.33 4.9%
(Nasdaq: VRTX)
WisdomTree Emerging Markets
Sep-20 New $38.02 Buy 25% New
High Dividend Fund (NYSE: DEM)

Zillow Group (Nasdaq: Z) July-20 $59.10 $79.34 Buy $59.82 34.2%

ZTO Express (NYSE: ZTO) Mar-19 $18.77 $36.00 Buy $28.98 94.6%

Note: If a “Buy” recommendation pulls back to within 5% of our protective stop, we routinely move it to a “Hold.” If the stock resumes its
upward climb, we will move it back onto our “Buy” list.

TH E T E N- B AG G ERS OF TOM ORROW PORT F OLIO

A select group of more speculative stocks with the potential to rise tenfold or more.

TOTAL
COMPANY/SYMBOL REC. DATE REC. PRICE CURR. PRICE RATING
GAINS

Glaukos (NYSE: GKOS) Dec-16 $34.10 $41.75 Buy 22.4%

LexinFintech Holdings (Nasdaq: LX) May-18 $12.64 $8.53 Buy -32.5%

Marvell Technology Group

Oct-19 $25.40 $35.35 Buy 40.1%
(Nasdaq: MRVL)

Momo Inc. (Nasdaq: MOMO) Apr-17 $33.66 $20.45* Sell -35.1%

MyoKardia (Nasdaq: MYOK) Dec-18 $52.14 $104.67 Buy 100.7%

NeoGenomics (Nasdaq: NEO) Aug-19 $23.28 $39.34 Buy 68.9%

NovoCure Ltd. (Nasdaq: NVCR) Feb-20 $71.38 $78.31 Buy 9.7%

Proofpoint (Nasdaq: PFPT) Oct-16 $74.56 $107.67 Buy 44.4%

Note: We do not use trailing stops in this portfolio. A sell recommendation will be triggered if a company misses its quarterly consensus
revenue estimate by 20% or more, or if we believe the company’s business prospects have worsened in some fundamental way.
* Official sell price.
 THE OXFORD ALL-STAR PORTFOLIO
A diversified basket of funds and holding companies managed by some of the world’s top-performing money managers.

TOTAL
COMPANY/SYMBOL REC. DATE REC. PRICE CURR. PRICE RATING
GAINS
Berkshire Hathaway B Shares (NYSE: BRK-B) Jan-01 $44.58 $212.58 Buy 376.8%

Equity Residential (NYSE: EQR) Jul-01 $28.05 $55.36 Buy 261.4%

Icahn Enterprises LP (Nasdaq: IEP) Nov-13 $78.23 $55.64 Buy 27.6%

Markel Corp. (NYSE: MKL) Jul-15 $789.45 $1,099.15 Buy 39.2%

Templeton Dragon Fund (NYSE: TDF) May-02 $9.20 $22.79 Buy 510.0%

Templeton Emerg. Mkts. Fund (NYSE: EMF) Jan-02 $8.80 $15.22 Buy 306.5%

Note: The All-Star managers make buy and sell decisions within these securities themselves. We do not use trailing stops here.

THE GONE FISHIN’ PORTFOLIO

A simple but sophisticated long-term investment system based on a Nobel Prize-winning strategy.

REC. REC. CURR. TOTAL

COMPANY/SYMBOL RATING ALLOCATION
DATE PRICE PRICE GAINS
Vanguard Small Cap Index (VSMAX) Apr-03 $15.13 $76.00 Buy 15% 472.8%

Vanguard Total Stock Mkt. Index (VTSAX) Apr-03 $19.59 $82.86 Buy 15% 391.8%

Vanguard Emerg. Mkt. Index (VEMAX) Apr-03 $9.53 $36.06 Buy 10% 396.7%

Vanguard Europ. Stock Index (VEUSX) Apr-03 $34.67 $66.89 Buy 10% 205.0%

Vanguard High-Yield Corp. Fund (VWEHX) Apr-03 $6.02 $5.86 Buy 10% 106.9%
Vanguard Inflation-Protected Securities
Apr-03 $12.09 $14.32 Buy 10% 78.6%
Fund (VIPSX)
Vanguard Pacific Stock Index (VPADX) Apr-03 $36.07 $82.06 Buy 10% 213.0%

Vanguard Short-Term Investment (VFSTX) Apr-03 $10.82 $11.00 Buy 10% 55.2%

VanEck Vectors Gold Miners ETF (GDX) Apr-03 $28.26 $42.39 Buy 5% 220.5%*

Vanguard REIT Index (VGSLX) Apr-03 $51.53 $116.90 Buy 5% 263.9%

Note: The Gone Fishin’ strategy requires annual rebalancing and does not require the use of trailing stops.
* Gains include Vanguard Global Capital Cycles Fund (VGPMX), formerly the Precious Metals and Mining Fund, held from April 1, 2003, through
January 14, 2020.
Prices as of August 10, 2020 | Note: For the absolute latest updates on all of The Oxford Communiqué’s portfolios, visit www.oxfordclub.com.

The Oxford Club LLC provides its Members with unique opportunities to build and protect wealth globally
under all market conditions. We believe the advice presented to Members in our published resources and CEO & Executive Publisher Julia Guth Director of Copy Editing Anne Mathews
at our seminars is the best and most useful to global investors today. The recommendations and analysis Chief Investment Strategist Alexander Green Research Director Kristin Orman
presented are for the exclusive use of Members. Members should be aware that investment markets have Quantitative Strategist Nicholas Vardy Senior Graphic Designer Chelsea Centineo
inherent risks and there can be no guarantee of future profits. Likewise, past performance does not secure Executive Editorial Director John Atwood Graphic Designer Roshna Joshi
future results. Recommendations are subject to change at any time, so Members are encouraged to make
Senior Managing Editor Christina Grieves
regular use of our website, www.oxfordclub.com.

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