5 Industry Leaders Loved by This Mega-Hedge Fund: Exxon Mobil Corporation (XOM), Potash Corp./Saskatchewan (POT)

Honeywell International Inc. (NYSE:HON), meanwhile, was the six largest holding in Adage’s Q3 13F filing, and one quarter later, the fund upped its stake by 10%, moving it to the No. 3 spot. Honeywell has already returned close to double-digit percentage points since the start of 2013, outperforming the technology sector handily (~4%). Honeywell has a major footprint in the aerospace industry, and its products serve everything from commercial jets to helicopters.

Broadly focused cost-cutting has led to sold margin expansion of late, and although shares aren’t particularly cheap, four consecutive earnings beats lends credence to the theory that this stock should continue to serve as a nice momentum play. Honeywell reports its first quarter financials in mid-April, so we’ll be watching this date closely.

Last but certainly not least, Philip Morris International Inc. (NYSE:PM) and Potash Corp./Saskatchewan (USA) (NYSE:POT) sit at the No.’s 4 and 5 spots in Gross and Atchinson’s equity portfolio. While both companies operate in drastically different industries, each represents a solid play for its own reasons.

Philip Morris’s position as the world’s largest tobacco company gives it significant scale advantages over its peers, and the sell-side expects the steady, plodding growth of yesteryear to continue into the intermediate future. Forecasts predict annual EPS expansion of 11-12% through at least 2017.

Potash, on the other hand, offers a slightly less glamorous dividend than Philip Morris’s yield of 3.6%, but like its portfolio peer, analysts expect double-digit expansion over the next year. Longer-term predictions are less certain, though, as the world’s largest potash producer must capitalize on emerging market demand, which is a higher growth area of the global economy.

With this analysis in mind, it’s easy to see that Phill Gross and Robert Atchinson have a penchant for industry leaders that offer at least two of the following: value, income or momentum. Aside from this particular market-beating strategy, ardent investors would be wise to consider these types of plays when compiling their portfolios for the remainder of the year.

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