Eric Heyman and Timothy Kang of Olstein Capital Management Find the Hidden Small to Mid Cap Gems

January 4, 2018


Eric R. Heyman is the Executive Vice President, Portfolio Manager and Director of Research of Olstein Capital Management, L.P., and the Portfolio Manager of the Olstein Strategic Opportunities Fund and Olstein All Cap Value funds.

Timothy S. Kang, is the Senior Vice President and Senior Research Analyst for Olstein Capital Management, L.P. which he joined in April 2006. Previously, he held the position of Vice President/Equity Research Analyst with Citigroup Asset Management covering Asia ex-Japan financial companies and assisted in covering U.S. banks.

These two highly experienced portfolio managers review a number of their top picks and the methodology they use in choosing them in their exclusive interview in the Wall Street Transcript.  The focus for these experts is on smaller cap public companies:  “…when most investors are thinking — small-to-midsized companies, they think of fast-growing companies and finding the next big concept or technology. We emphasize looking for what are undervalued companies or situations where companies are undertaking turnaround strategies that shift their internal focus to greater efficiency or increasing shareholder value. The companies that we own have solid cash flow, great balance sheets. So they have flexibility to increase dividends or buy back stock or pay down debt — actions that return free cash flow to shareholders.”

A good starting point is one of their current favorites.  “Spartan Motors (NASDAQ:SPAR) is a play on the growth of e-commerce as the company is the leading producer of last-mile delivery vehicles — Utilimasters is what they are called — including walk-in vans, truck bodies and cargo van upfits. A commonly cited statistic is that e-commerce is expected to grow at three times the rate of GDP. It is expected that over 64 million packages will be delivered daily by 2026; all of those packages need to be delivered somehow, and Spartan has the number one position in last-mile delivery vehicles.”

To get more insight into Spartan Motors and many other top picks from Timothy Kang and Eric Heyman, read the entire interview in the Wall Street Transcript.