NEW YORK (TheStreet) -- Fund managers are looking to finish strong in 2014 as well as set themselves up for a run in 2015 and beyond. Andrew Ver Planck, portfolio manager for the MainStay International Opportunities Fund, said one of his picks is Teva Pharmaceutical (TEVA) .
The stock is up a compelling 43% in 2014 but there are worries about the company's multiple sclerosis treatment, he said. Right now the stock seems "relatively cheap," he explained, and the company has a positive catalyst in the form of increasing profit margins. In the most recent quarter, the company reported profit margins of 22%, up from 15% one year ago.
Ver Planck also likes FedEx (FDX) , which is up 20% year to date. The company is facing a "win-win" situation, with falling oil prices and strong delivery demand for the holidays. He is long the stock in the fund and plans to hold that position for the foreseeable future.
Finally, Ver Planck had a short-sell pick for investors. While shares of Arch Coal (ACI) could move higher on a short-squeeze, the company is unlikely to be cash flow-positive for the next two years, he said.
The company is unlikely to be profitable until at least 2017. Part of coal's secular decline is coming at the hands of the government, as many utility companies are being forced to switch to natural gas, from coal.
-- Written by Bret Kenwell