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Published on Oct 14, 2016
Property-owner
Brookfield Asset Management 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 . 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 , 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 Corp is another one
of Macauley's top picks. Theadvanced 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 , 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.
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