Rich Werman, Neuberger Berman Select Equities Fund
Like other fund managers, Rich Werman and the management team of the Neuberger Berman Select Equities Fund (NBEAX) favor large-cap value stocks.
As of March 31, institutional shares of the Neuberger Berman Select Equities Fund have beaten the benchmark S&P 500 Index in 2011 and over the past one- and three-year periods. The fund shielded investors during the market downturn in 2008, climbing 1.1% since its December 2007 inception to the S&P 500's decline of 0.7%.The Neuberger Berman Select Equities Fund had 25 stocks as of Dec. 31 with an annual turnover of 126%. Werman says the fund's total net assets has climbed above $77 million from $68 million at the end of 2010. The fund has a heavy sector allocation to industrials, materials and energy, each accounting for more than 10% of the portfolio. For those with tax returns in hand looking for ideas, Werman says his team owns and recently bought shares of Hewlett-Packard (HPQ). Rather than the cost cutting that the company has done in the past under old management, Werman and his team expect the company to instead spend and reinvest back in the business. "New management believes they'll be able to earn in excess of $7 per share in earnings," Werman says from his New York office. "They're generating in excess of $800 million per month in free cash flow, and we think they're doing the right thing by buying back stock. They're buying up companies that have higher growth and higher margins, and they're not paying exorbitant amounts." Elsewhere, Werman says the portfolio has an investment in cell-tower operator American Tower (AMT), which saw its share price decline on news of the potential AT&T (T) merger with T-Mobile USA due to expectations there will be less of a need for more cell towers. Werman and his team, though, say the stock is attractive as the company transforms into a real estate investment trust, or REIT. "If you follow the REIT index, this will be a top five REIT and all the REIT funds will go out and buy the stock. It's like when a company is added to the S&P 500," Werman says. "So you'll have the REIT status and they're still growing internationally. They just bought towers in India, Ghana and South Africa, where they can apply their expertise to grow that business there." Lastly, Werman says he and his team have focused on Deere (DE) because of its agriculture business, as well as Teck Resources (TCK). Specifically, Werman notes that the company has a joint venture that will be an oilsands business, and it also is involved in metallurgical coal.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV