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Mint Money Like Lone Star Capital

Here are some ideas to piggyback the private equity firm.

Updated from 6:59 a.m. EDT

Contrarian investments that disregard the short-term noise in the market and the widespread bearish bias often yield uncommon returns over time.

Whether or not this means you should consider plays such as

Biogen Idec




(ELN) or some of the financials such as




Washington Mutual



Lehman Brothers


is up to debate.

But what isn't up to debate is that Lone Star Capital has a history of bucking the trend and proving the naysayers wrong.


Merrill Lynch


said it was selling a portfolio of collateralized debt obligations, or CDOs, with an original face value of $30.6 billion, to the Dallas-based private equity firm Lone Star Capital for $6.7 billion. But who is Lone Star Capital, and why the heck is it buying this toxic paper?

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A note from James Altucher:Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to atheme but also offer significant analysis as to why the stocks are cheap.Here are some examples: Here's the challenge: Build a portfolio at with greatanalysis, and send me the link. Each great portfolio (with analysis)will get posted on with your byline (as a "StockpickrGuest Columnist") and will be included in my email I send to Jim and the otherhedge fund managers on my list.

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