The investment strategy of Aquila Three Peaks Opportunity Growth Fund (a stock fund) begins in the high yield corporate bond market, where the Fund’s portfolio managers become familiar with high-yield issuers, their management teams, and corporate growth objectives. A key component of the research process covers a firm’s ability to generate free cash flow, which is then available for a number of purposes, including paying down debt, which can improve the balance sheet and enhance the performance of the stock.
The Barron’s article makes mention of a Ball Corp “target of $300 million in cost savings and a doubling of free cash flow from premerger levels, to more than $1 billion by the end of 2019”. Ball Corp recently merged with Rexam.
The article goes on to say “Zach Miller, co-manager of the Aquila Three Peaks Opportunity Growth fund, thinks the stock can rise to $91 from a recent $73.35, as the benefits of the Rexam deal become more clear later in the year. Miller expects Ball’s adjusted Ebitda to grow 11% in 2018 to almost $2 billion, rising to nearly $2.2 billion in 2019, while analysts currently expect Ebitda of $1.92 billion next year and $2.05 billion in 2019.”
Before investing in a Fund, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available on this site, from your financial adviser and when you call 800-437-1020.