Longhorn Capital’s ‘Fab Five’ Includes Aon PLC (AON), Travelers Companies Inc (TRV) & Wal-Mart Stores, Inc. (WMT)

Wal-Mart’s scale advantages are another key reason to be optimistic about the high-single-digit annual EPS growth predicted by the Street over the next few years, and a solid Q4 earnings beat is icing on the cake.

Rock-Tenn Company (NYSE:RKT), lastly, is Kristynik’s fifth largest holding, and rounds out this list. Rock Tenn has already returned nearly 25% year-to-date, and bulls have been active of late due to a favorable debt deal. Despite their recent appreciation, shares of the consumer packaging company are still cheap, trading at 10.5 times forward earnings and 0.7 times sales. Wall Street’s average price target on Rock Tenn indicates that just a 1-2% upside is expected from current levels, and the company’s dividend yield near 1% isn’t particularly earth shattering, but there’s something to be said for Kristynik’s conviction.

On the whole, 23 other hedge funds (among those we track) held Rock Tenn at the end of the fourth quarter, including Ken Heebner, John Paulson and David Dreman. With results like these, it’s important to pay attention to this sentiment.

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