WellPoint, Inc. (WLP), The Timken Company (TKR): Value Investor Karen Finerman’s Latest Stock Picks

Page 1 of 2

Readers may recognize value investor Karen Finerman from her frequent appearances on CNBC’s Fast Money. Outside of her television appearances, Finerman is the CEO and co-founder of Metropolitan Capital Advisors, a New York-based hedge fund established in 1992.

The 48-year old Finerman recently authored a book titled Finerman’s Rules: Secrets I’d Only Tell My Daughters About Business and Life. The new release offers insights on a variety of topics, including personal finance and advice for career-minded women. Although I do not meet the target female demographic, I consider the book a must-read for both male and female audiences.

With respect to her hedge fund, Finerman maintains a simple goal. The fund aims to outperform large-cap indices such as the S&P 500 using a value-oriented approach, all while incurring less risk.

Here are three stocks owned by Finerman that readers might consider:

WellPoint, Inc. (NYSE:WLP)

Health benefit company

Metropolitan Capital entered the New Year with a large position in WellPoint, Inc. (NYSE:WLP), and Finerman increased her stake even more during the first quarter.

Finerman’s good work has been confirmed by the healthy rally in the stock (no pun intended) that has taken place since April. Shares of WellPoint, Inc. (NYSE:WLP) have outperformed the S&P 500 with a 34% gain through June.

Despite the recent gains, I believe the health benefit company can run higher in the next 12 months. WellPoint, Inc. (NYSE:WLP) reported better than expected Q1 earnings on April 24, with EPS of $2.94 significantly above the consensus of $2.38. Management provided full-year earnings guidance of “at least $7.80” based on anticipated enrollment growth.

In my view, the Q1 earnings beat is the start of a long-term positive at WellPoint, Inc. (NYSE:WLP). New members are likely to join a WellPoint, Inc. (NYSE:WLP) health plan based on the expansion of Medicaid under President Obama’s Affordable Care Act. The company is also benefiting from a new CEO, Joseph Swedish.

On May 13, WellPoint, Inc. (NYSE:WLP) reiterated its full year guidance in a regulatory filing. Numerous Wall Street firms have upgraded the stock in recent weeks, which could lead other hedge funds to ride on Finerman’s coattails.

The company will release Q2 2013 earnings before the market open on July 24. I believe management’s guidance is likely conservative, and the stock could reach $90 before year-end.

Industrial machinery & equipment

As a value investor, Karen Finerman will often buy and hold stocks for the long-term. She continues to view The Timken Company (NYSE:TKR) positively, with a large ownership position as of the most recent SEC filing.

The Timken Company (NYSE:TKR) develops and sells products for friction management and mechanical power transmission, alloy steels, and steel components. The $6 billion company operates outside northeast Ohio with more than 20,000 employees in 30 countries and territories.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!