Billionaire Howard Marks’s Best Contrarian Investments: Charter Communications, Inc. (CHTR), Delphi Automotive PLC (DLPH)

Coming in at No. 4 is First Bancorp (NYSE:FBP).  Marks held his position steady according to his latest 13F filing, and given the outlook for Federal Reserve policy for 2013, bulls might want to consider doing the same. Following a slightly better-than-expected February jobs report, speculation that the Fed will ease off its accommodating stance is shining a positive light on banking stocks should interest rates inch higher this year.  But with the stock trading close to par from a price-to-book aspect and technicals suggesting the stock is overbought, analysts are almost unanimous on a hold recommendation.

Last but certainly not least at No. 5 is CIT Group Inc. (NYSE:CIT). After rallying on Thursday (3/7) after better than expected earnings, CIT showed some modest profit-taking at the end of last week. The consensus among technical analysts is that the stock is ready for a new trading range of $45.50 to $46.50.  Fundamentally, however, there are indications that a broader price breakout might be harder won: anemic revenue growth continues to plague the bank; and persistent rumors that the bank could be sold to either Wells Fargo or Canada’s Toronto-Dominion (despite CEO John Thain’s insistence otherwise) would not bring much of a windfall to investors with the stock already trading at fair-market value.

Nonetheless, as Howard Marks remains ever the loyal contrarian, he will likely continue to position himself with the securities everyone else has overlooked.

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