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Showing posts with label exposes. Show all posts

NRA offensive exposes deep U.S. divisions on guns

Wayne LaPierre, Executive Vice President of the National Rifle Association (NRA), speaks during a news conference in Washington December 21, 2012. REUTERS/Joshua Roberts

Wayne LaPierre, Executive Vice President of the National Rifle Association (NRA), speaks during a news conference in Washington December 21, 2012.

Credit: Reuters/Joshua Roberts



WASHINGTON | Fri Dec 21, 2012 7:30pm EST


WASHINGTON (Reuters) - Any chance for national unity on U.S. gun violence appeared to wane a week after the Connecticut school massacre, as the powerful NRA gun rights lobby called on Friday for armed guards in every school and gun-control advocates vehemently rejected the proposal.


The solution offered by the National Rifle Association defied a push by President Barack Obama for new gun laws, such as bans on high-capacity magazines and certain semiautomatic rifles.


At a hotel near the White House, NRA Chief Executive Wayne LaPierre said a debate among lawmakers would be long and ineffective, and that school children were better served by immediate action to send officers with firearms into schools.


LaPierre delivered an impassioned defense of the firearms that millions of Americans own, in a rare NRA news briefing after the Newtown, Connecticut, shooting in which a gunman killed his mother, and then 20 children and six adults at an elementary school.


"Why is the idea of a gun good when it's used to protect our president or our country or our police, but bad when it's used to protect our children in their schools?" LaPierre asked in comments twice interrupted by anti-NRA protesters whom guards forced from the room.


Speaking to about 200 reporters and editors but taking no questions, LaPierre dared politicians to oppose armed guards.


"Is the press and political class here in Washington so consumed by fear and hatred of the NRA and America's gun owners," he asked, "that you're willing to accept a world where real resistance to evil monsters is a lone, unarmed school principal?"


Proponents of gun control immediately rejected the idea, hardening battle lines in a social debate that divides Americans as much as abortion or same-sex marriage.


A brief NRA statement three days earlier in which the group said it wanted to contribute meaningfully to ways to prevent school massacres led to speculation that compromise might be possible, or that the NRA was too weak to defeat new legislation.


"The NRA's leadership had an opportunity to help unite the nation behind efforts to reduce gun violence and avert massacres like the one at Sandy Hook Elementary School," said Democratic Representative Carolyn McCarthy of New York. She supports new limits on ammunition and firearms, and universal background checks for gun buyers.


WAITING FOR A COMPROMISE


Adam Winkler, author of "Gunfight," a history of U.S. gun rights, said he expected the NRA might yield on background checks. About 40 percent of gun purchasers are not checked, according to some estimates.


"The NRA missed a huge opportunity to move in the direction of compromise. Instead of offering a major contribution to the gun debate, which is what they promised, we got the same old tired clichés," said Winkler, a law professor at the University of California at Los Angeles.


A Reuters/Ipsos poll on Monday showed the percentage of Americans favoring tough gun regulations rising 8 points after the Newtown shooting, to 50 percent.


Inside the NRA, though, attitudes might not change much.


"The anti-gun forces which are motivated by hysteria and a refusal to deal with the facts are going to be facing a counter-attack here that is going to be very, very effective," said Robert Brown, an NRA board member and the publisher of Soldier of Fortune, a military-focused magazine.


During the news conference, LaPierre laid out a plan for a "National School Shield" and said former U.S. congressman Asa Hutchinson from Arkansas would head up the NRA's effort to develop a model security program for schools.


The NRA is far and away America's most powerful gun organization and dwarves other groups with its lobbying efforts. In 2011, it spent $3.1 million lobbying lawmakers and federal agencies, while all gun-control groups combined spent $280,000, according to records the groups filed with Congress.


ECHOES OF COLUMBINE


Ken Blackwell, another NRA board member, said NRA leaders were discussing how to react to the Newtown shooting on the day it happened, helping LaPierre formulate a position.


"He and the team of lawyers around him are very bright and they understand the Constitution," said Blackwell, a Republican former state official in Ohio.


The Second Amendment to the U.S. Constitution as interpreted by the Supreme Court in 2008 guarantees an individual right to own firearms, though it allows for some limits.


While LaPierre's proposal to arm schools came as a surprise to those who hoped for compromise, it is not new.


Former NRA president, the late actor Charlton Heston, made a similar proposal after the 1999 Columbine High School massacre near Denver that killed 12 students and one teacher.


"If there had been even one armed guard in the school, he could have saved a lot of lives and perhaps ended the whole thing instantly," Heston said in April 1999, according to The New York Times.


Columbine had an armed sheriff's deputy who exchanged gunfire outside the school with one of the two teenage killers, according to a Jefferson County, Colorado, sheriff's office report. The deputy was unable to hit or stop the student, who was armed with a semiautomatic rifle, from entering the school, and the deputy stayed in a parking lot with police, the report said.


Protesters at the news briefing on Friday accused the NRA of being complicit in gun deaths.


"If teachers can stand up to gunmen, Congress can stand up to the NRA," said Medea Benjamin, co-director of the peace group Code Pink, who was escorted from the news conference.


(Additional reporting by Susan Heavey, Patrick Rucker and Alina Selyukh in Washington, and Stephanie Simon and Keith Coffman in Denver, Colorado; Editing by Karey Wutkowski, Mary Milliken and Eric Beech)


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Analysis: Apple's swoon exposes risk lurking in mutual funds

Attendees sit in front of an Apple logo during the Apple Worldwide Developers Conference 2012 in San Francisco, California June 11, 2012. REUTERS/Stephen Lam

Attendees sit in front of an Apple logo during the Apple Worldwide Developers Conference 2012 in San Francisco, California June 11, 2012.

Credit: Reuters/Stephen Lam

By David K. Randall

NEW YORK | Fri Dec 21, 2012 1:41pm EST

NEW YORK (Reuters) - The nearly 28 percent decline in shares of Apple Inc since mid-September isn't just painful to individual shareholders. It's also being felt by investors who chased hot mutual funds that loaded up on Apple as the stock raced to a record $705 per share.

Apple makes up 10 percent or more of assets in 117 out of the 1,119 funds that own its shares, according to data from Lipper, a Thomson Reuters company. Those big stakes have contributed positively to each fund's annual performance to date, with Apple still up about 32 percent for the year. It was trading at $527.73 soon after the opening on Friday.

But that year-to-date outcome may not accurately reflect the performance of the funds for individual investors. All told, approximately $4.5 billion has been added to funds with overweight stakes in Apple this year, according to Morningstar data. The majority of these dollars were invested after March and after Apple first exceeded $600 per share - meaning many investors have been riding down with the decline.

The $302 million Matthew 25 fund, for instance, holds 17.4 percent of its assets in Apple, according to Lipper. The fund's 31.9 percent gain through Thursday makes it one of the top performing funds for the year.

Most of its Apple shares were bought years ago at a bargain basement price of about $125 per share. But $158.9 million of the fund's assets - or 53 percent - were invested after the end of March, when Apple was trading near $615 per share, according to Morningstar data.

For those investors that bought after March, all that concentration in Apple hasn't led to a stellar gain but rather a drag on the portfolio. Someone who invested in Matthew 25 in early April has seen the value of the fund's Apple stake fall about 19 percent, while someone who invested at the beginning of September has watched that outsized Apple stake drop 27.2 percent.

In turn, the majority of the fund's investors have reaped a much more modest performance than its year-end numbers suggest. Since the end of March, the fund has gained 6.7 percent, according to Morningstar data, far less than its 31 percent year-to-date gain and about two percentage points more than the benchmark Standard & Poor's 500 index.

Since, September the fund is down nearly 3 percent through Thursday's close, compared with a 1.1 percent decline in the S&P 500 in that period.

The impact of Apple's falling stock price shows some of the drawbacks of portfolio concentration, experts say. These stakes can leave the funds overexposed to the ups and downs of one company - counter to what most mutual funds are supposed to do for investors.

"Any time you get over 10 percent of the portfolio in one company it's a red flag," said Michel Herbst, director of active fund research at Morningstar. Many fund managers do have risk management rules that prevent them from devoting more than 5 percent to 6 percent of their portfolio to any one stock, he said.

Then again, some funds purposely invest in just a few stocks. Mark Mulholland, the portfolio manager of the Matthew 25 fund, said that taking concentrated positions in companies is the only way to beat an index over longer periods of time.

'RIGHT-SIZING' PORTFOLIOS

Along with concerns about iPhone sales in China and tax-motivated selling among people who want to avoid potentially higher capital gains taxes in 2013, the wide fund ownership of Apple may be a factor in the size of the stock's recent declines, fund managers said. In addition, with so many funds already heavily invested in the high-priced stock, there may be fewer marginal buyers available to push prices up again when shares begin to dip.

"The stock didn't go from $700 to $520 because people didn't like the new iPad. It's become a favorite short of hedge funds because they know they can get in on this," said Mark Spellman, a portfolio manager of the $300 million Value Line Income and Growth fund with a small position in Apple.

Short interest in the stock rose to 20.6 million shares at the end of November from 15.1 million shares at the end of September, according to Nasdaq.

"Some of my competitors have 12 percent of their assets in Apple, which I think is ludicrous", said Spellman, who said the company is no longer trading on its fundamentals.

Sandy Villere, who has a 2.5 percent weighting of Apple in his $276 million Villere Balanced fund, said that some mutual fund managers are selling shares because of the over-weighting.

"Right now many people who did take huge overweight positions are right-sizing their portfolios to get it in line with their regular weightings," he said.

Still, some bullish investors see the stock's recent declines as a buying opportunity.

Mulholland, the Matthew 25 portfolio manager, continues to say that shares should be priced at over $1,000 per share based on his valuation of the company at 10 times enterprise value divided by earnings before interest, taxes, depreciation and amortization (EBITDA). Apple trades at about 7 times that figure now.

Wall Street analysts' average price target as of Thursday is $742.56, according to Thomson Reuters data. But Mulholland is happy to be more bullish than his peers.

"I'm glad that I'm able to get it at these prices," he said.

(Reporting By David Randall; Editing by Jennifer Merritt)


View the original article here

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