This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Three Stocks Hedge Funds Love

Stocks in this article: ENRROCJOY

NEW YORK ( TheStreet) - If star hedge fund manager Alexander Roepers of Atlantic Investment Management has his way, these returns will keep "going and going."

Speaking at the Value Investing Congress, Roepers recommended several names, including battery and personal care products maker Energizer Holdings (ENR), which he mentioned last year as well. Since mentioning the stock as an investment idea, shares have returned 5%.

Roepers, whose fund takes stakes between 2% and 7%, and doesn't wage proxy battles, noted Energizer has a very shareholder friendly management team. The hedge fund legend thinks shares could reach as high as $100 in the next 6 to 12 months for a variety of reasons, including a strategic franchise, and predictable cash flows.

Energizer competes with P&G (PG) in the personal care products and shaving sectors, particularly after the latter's acquisition of Gillette.

Turning his attention away from Energizer, Roepers mentioned Rockwood Holdings (ROC), a specialty chemicals maker based in Princeton, N.J. Roepers sees shares reaching as high as $70 for a number of reasons, citing, in particular, its lithium division, which is growing 8% per annum. Lithium is one of the core themes of Roeper's analysis for being long Rockwood. Rockwood also has divisions involved in advanced ceramics, performance additives and surface treatment. Shares have gained just over 20% year-to-date.

Joy Global (JOY) is another name Roepers mentioned as a long investment idea. The surface and underground mining company has come under pressure recently with China's growth slowing, but Roepers thinks shares are worth $100 in the next year. He noted that Joy Global's major competitor, Bucyrus, was acquired by Caterpillar (CAT). Joy Global shares have vastly underperformed the major indices this year, losing 36.7%, compared to a near 15% gain in the S&P 500 and the Nasdaq's hike of more than 20%.

Roepers also mentioned two companies which trade in Europe, Clariant, which is based in Switzerland, and FLSmidth, an engineering service company.

-- Written by Chris Ciaccia in New York

>Contact by Email.

>To submit a news tip, send an email to: tips@thestreet.com

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs