Editor's note: As part of our partnership with Nightly Business Report, TheStreet's Gregg Greenberg will appear on NBR Monday (watch video and read transcript here) to highlight contrarian stock plays that asset managers are making now.
NEW YORK (TheStreet) -- Aflac (AFL) shareholders haven't had much to quack about the past year with the stock severely underperforming the S&P 500, but Bill Smead, portfolio manager for the Smead Value Investor Fund (SMVLX), expects that to change.
"They cleaned up their trouble with their European bond ownership and now they've got $100 billion dollars to invest, and furthermore the stock trades cheaply at just over 6 times next year's earnings," says Smead, who also won't rule out the possibility of Aflac being acquired at some point in the near future.
The $55.8 million fund, which garners 4 stars from Morningstar, is up 15% over the past 12 months putting it in the top 3% of large blend funds tracked by Morningstar. Over the past three years, the fund has returned an average of 26% annually, outpacing 88% of its Morningstar rivals.
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