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.
Mr. Hewitt sees Del Taco (NASDAQ:TACO) as one of his top small cap value 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.”
For the rest of Eric Hewitt’s stock picks, read the entire interview at the Wall Street Transcript.
