Billion-Dollar Manager David Dreman’s Biggest Holdings

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Dreman’s fourth-largest position can be found in Charles River Laboratories International (NYSE:CRL), a biotechnology firm that promotes the drug development and testing process. The firms claim to fame is “in vivo” (oftentimes human) testing, and they made a strong push into China in 2012 with their acquisition of Vital River, completed on the 8th of this month. CRL consistently beat earnings in every quarter of 2012 and has seen high praise from research houses, although current estimates hint at a possible overheating and small retracement in stock price from these levels.

Hanesbrands Inc. (NYSE:HBI) rounds out Dreman’s list, and the apparel manufacturer provides further diversity in his top five holdings. With notable brands such as Hanes, Champion, and Wonderbra, HBI is a best-of-breed seller in the important category of clothing items that need constant replenishment, so consumers continue to provide sales support even in weaker economic times. This strength is highlighted in their 2012 performance – the stock gained a whopping 56% in share price. We join other analysts in being bullish going into 2013, as impressive valuation metrics across the board support a higher share price by the end of the year.

Disclosure: I do not own shares of any stocks mentioned in this article.

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