NEW YORK (TheStreet) -- Vivendi's (VIVHY) Chairman Vincent Bollore is making significant changes at the French media conglomerate, including raising the company's stake in Telecom Italia (TI - Get Report).
That's one reason Vivendi is a holding in the Evermore Global Value Fund, said portfolio manager David Marcus. Bollore's leadership and asset redeployment is paying off for Vivendi shareholders.
"They are taking the money that they received from selling a lot of assets and they're redeploying some and they are giving some back to shareholders," said Marcus. "The stock looks like it's not moving much but over the last three years, it's actually doubled. We think it's worth at least 50% more. They've gone from net debt of almost $6 billion, a couple years ago. They have close to $18 billion of net cash now."
Shares of Vivendi are up over 4% for the year to date, while the Evermore Global Value Fund has jumped 10.5% thus far in 2015.
Vivendi is the biggest holding in Marcus' fund, but he is also bullish on another European name, ING (ING). The Dutch bank has seen its shares rise more than 30% so far this year in the wake of its spin-off of its American arm, which is now called Voya Financial (VOYA).
"It's a boring bank with an investment banking arm, but it turns out that boring banks make a lot of money," said Marcus. "It's very low-interest-rate environment. ING has figured out how to actually make money. So if rates move up, which a lot of people do expect to happen, they'll actually make more money. So they are very well positioned."
"The company will probably be paying out around 10% dividend this year. So it's a very high cash-generating company. They are giving a lot back to shareholders. They are looking to acquire other salmon producers in the world and really just continue to dominate this entire industry," said Marcus, who added that the company's sales could really skyrocket once sanctions against Russia are lifted.