Professional Portfolio Manager Stock Pickers: Three Genius Recommendations from January of 2017

December 26, 2017


These professional portfolio managers got it right back in January of 2017 with some tremendous picks.

Peter H. Havens is the Chairman and Founder of Baldwin Management, which he started in 1999 after serving as a member of the board of directors and Executive Vice President of The Bryn Mawr Trust Company. Previously, he organized and operated the family office of Kewanee Enterprises. Mr. Havens received a bachelor’s degree from Harvard College and an MBA from Columbia Business School. He is Chairman of the Lankenau Institute for Medical Research and Chairman of the board for the Independence Seaport Museum.  His pick from January of 2017 was a high return large cap medical technology stock.

“Thermo Fisher (NYSE:TMO), and this is a life sciences and also a measurement company. It’s also involved in food safety and environmental. And we’ve found them to be a very effective acquirer of technology, getting ahead of the curve. Last year they bought a company called FEI, and they make high-performance electron microscopes. And the reason they got involved in this is with regard to protein identification and characterization, and this is where scientific research is going.”

David Corris is the Head of Disciplined Equities and Portfolio Manager at BMO Global Asset Management since 2015. He leads a team of 11 investment professionals who manage over $15 billion in active equity strategies spanning U.S., international, low volatility and global long/short. He is the Portfolio Manager for U.S. large/mid/small-cap strategies and is responsible for implementing investment strategy and leading day-to-day portfolio research and trading.  His top stock pick was not obvious in January of 2017.

Walmart (NYSE:WMT), which is going to be the least-exciting name that I talk you about in this entire call, but I’m going to preface it by saying sometimes within low-vol portfolios, you’re not talking about exciting companies, you’re talking about, you know, meat-and-potato-type companies. And so Walmart, while they’re not the most exciting name to talk about, they have a very strong business model with above-average profitability. They’ve got a well-managed balance sheet. They’ve got a very stable revenue generation model. They have an above-average yield of roughly 3%. And with all that said, they are one of the cheapest names in their peer group, for example with the p/e of around 16 times.”

Benjamin C. Halliburton, CFA, is a Founder, CEO and Chief Investment Officer of Tradition Capital Management, LLC. He oversees the investment research and strategy. He also heads the Investment Committee and covers the energy and technology sectors.  His top pick from January of 2017 pounded the market and demonstrated a real contrarian strategy.

“A company I think that works for a lot of investors right now — extremely out of favor, large-cap name, pays a nice dividend of 4.14% — is AbbVie (NYSE:ABBV). They are the producer of HUMIRA. HUMIRA is the primary driver of profits and profit growth over the near term, and represents a huge amount of their business.

People are concerned that biosimilar competition could erode HUMIRA’s market share and profitability. AbbVie, when you talk to management, indicates that they are very confident in their multiple intellectual property protection strategies, lots of patents that will protect them for years, some of which do not expire for multiple years.”

To see what top picks are available to investors for 2018, read the exclusive interviews available on the Wall Street Transcript.