Leon Cooperman’s eagerly awaited stock picks at the annual Delivering Alpha conference might almost said to deliver alpha themselves. Cooperman’s picks have been consistent winners, with 8 out of 10 showing positive returns in 2013 and 10 out of 10 ending in the green for 2012. CNBC’s Jim Cramer recommended his viewers follow Cooperman’s choices after doing due diligence, because of the hedge fund manager’s consistent performance.
Cooperman, who left Goldman Sachs to start Omega Advisors, outlined these five stocks, among others, to put on the radar:
1. Actavis is based in Ireland, because of a tax inversion strategy. This company should outperform because of its emphasis on generics, which will see greater demand as the patient population ages and insurers look for more ways to save money. Its multiple is a mere 13 compared to earnings growth of 20%.
2. Citigroup seems to have nowhere to go but upward, and was one of the hardest hit banks of the financial crisis. Both Jim Cramer and Cooperman are bullish on Citi because of restructuring, the likelihood it will eventually pass the next stress test and be allowed to pay a dividend and the increasing health of even its weakest segment, Citi Holdings.
3. Atlas Energy is an oil and gas master limited partnership that missed earnings last time around, but should grow production by 70%. Its yield is 11%, so it pays investors to wait for the next good quarter.
4. KKR is a solid financial that may be a long-term value stock. It has a healthy fixed income, real estate equity and real estate business. Its multiple is only at 9 compared to Blackrock’s 15.