Eric Hewitt is the Portfolio Manager of the Oppenheimer Small Cap Value Fund and Co-Portfolio Manager of Oppenheimer Mid Cap Value Fund. In an exclusive interview with the Wall Street Transcript, Mr. Hewitt details his investing criteria for Del Taco (NASDAQ:TACO), DCT Industrial Trust (NYSE:DCT), Nomad Foods (NYSE:NOMD) and many other of his top portfolio picks.
“TWST: Did you want to mention another company?
Mr. Hewitt: Another company that we’re interested in right now is Del Taco (NASDAQ:TACO). Del Taco is the number two Mexican quick-service concept in the U.S., started in California…Del Taco has the Buck & Under menu, which is similar to McDonald’s dollar menu. When I watch customers come through Del Taco, I see them order off the core menu but then make some additional purchases from the Buck & Under menu. That combination is very powerful…”
Another top pick from Mr. Hewitt also leverages off his ability to identify value from consumer non-durables demand:
“DCT Industrial Trust (NYSE:DCT), which is an industrial warehouse REIT. As value investors, we can’t always find interesting valuations in Amazon (NASDAQ:AMZN) and other online retailers. But we can invest in the building blocks of those businesses.”
Another interesting stock identified by Mr, Hewitt in this extensive interview is Nomad Foods (NYSE:NOMD).
“Nomad Foods (NYSE:NOMD) is a company focused on frozen foods in Europe. We think Nomad is interesting for a couple reasons. First, we like the valuation. The company trades with a free cash flow yield well above 10%. Free cash flow is something that we’re always interested in, and a 10%-plus free cash flow yield is unique in the market and really grabs our attention.”