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
TheStreet Open House

Don't Overlook AIG, Genworth

Stocks in this article: EVGBX GNW AIG

NEW YORK ( TheStreet) -- Investors taking a hard look at insurers in the wake of Hurricane Sandy, as well as recent economic reports, should certainly consider buying shares of AIG (AIG - Get Report) and Genworth (GNW - Get Report), said David Marcus, portfolio manager for Evermore Global Value Fund (EVGBX). The $70 million mid-cap blend fund has returned 5% year to date.

Welcome to TheStreet's Fund Manager Five Spot, where top fund managers give their best stock picks and views on the market in a five-question format.

What is your view of the economy?

Marcus: We feel the economy is slowly improving here in the U.S. The European markets are still declining, but companies are taking advantage of the crisis themselves rather than waiting for their countries to create a solution. Corporate profits are ticking higher, and consumers are slowly stepping up their spending. However, there remains to be significant uncertainty generally.

What is your top stock pick?

Marcus: It would have to be AIG at this juncture. Right now, investors are looking backwards here to a bailed-out company that was taken over by the government and was one of the worst culprits of the financial crisis. Looking forward, we see a company that is trading at just over 50% of book value, has cleaned up its balance sheet and gotten rid of most of the crisis assets. We like their aggressive management, the fact that non-core assets continue to be sold and that they have a massive stock buyback program. The US government now owns 15.9% of the company, which is down from 92% a year ago. This stock is too cheap.

What is your top "sleeper" or "under the radar" stock pick?

Marcus: Interesting question, but I think I would say Genworth. This insurance company is in life, mortgage insurance and long-term disability primarily. Genworth was decimated during the financial crisis and the mortgage insurance business was the worst culprit. However, today the company is aggressively refocusing itself and selling non-core holdings, it has fired its CEO and is looking to IPO its Australian mortgage insurance unit late in 2013. The stock trades at about 20% of book value and earnings are slowly turning the quarter and improving across the businesses.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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