Property owner Brookfield Asset Management (BAM) is well positioned for the current low interest rate environment as institutional investors seek alternatives to bonds like real assets, said Brian Macauley, portfolio manager for the Hennessy Focus Fund (HFCSX) .
Brookfield, up 16% year-to-date, owns office and retail property, toll roads, hydroelectric dams, transmission lines and ports. Macauley said the company's "scale, global operating footprint, and contrarian approach" make them among the best at this in the world.
The Hennessy Focus Fund is up 3.1% thus far in 2016, according to Morningstar. The $2.4 billion fund has returned an average of 8.5% annually over the past three years, outpacing 87% of its rivals in Morningstar's mid-cap growth category.
Macauley is also bullish on shares of American Tower (AMT) , which are up 18% thus far in 2016. Macauley said the largest cellular tower owner in the U.S. is rapidly growing its international portfolio and is benefiting from the rollout of 4G technologies to support the surging demand for mobile data.
"Mobile data demand growth has been explosive and that will provide a decade or more of growth at American Tower," said Macauley.
Hexcel (HXL) is another one of Macauley's top picks. The advanced materials company has seen its stock drop 9% thus far in 2016, but Macauley believes Hexcel has excellent growth prospects as Boeing and Airbus compete to make lighter, more durable and more fuel-efficient planes.
"Aerospace customers are increasingly using carbon fiber over aluminum, growing Hexcel's addressable market," said Macauley. "And as the most vertically integrated supplier in the industry, Hexcel is better able to control costs, quality and delivery of its product."
Finally, Macauley is a fan of Twenty-First Century Fox (FOXA) , down 9% year-to-date, saying the media giant has "built-in pricing power" for its cable networks and the best growth profile in the space.