With the ASX crashing below 5000, this top fund manager is eyeing a bargain

With the S&P/ASX 200 Index crashing back below 5,000, investors are probably wondering whether now is a great buying opportunity.

The AFR posed that very question to some top fund managers. Most advised against buying mining shares — I guess that counts buying BHP Billiton Limited (ASX: BHP) shares out, even with its share price dipping below $16 — but all were looking at the sell-off as an opportunity to snap up a few bargains.

Julian Beaumont, Bennelong Australian Equity Partners investment director, said he would look to add to positions in companies with “essential services” such as telecommunications and healthcare, as well as those supported by other tailwinds such as tourism.

A look through Bennelong’s Australian Equities Fund recent performance reports suggests these three ASX shares might be close to the top of Mr Beaumont’s list…

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price has recently rallied from $34 to $40, before falling back to around $38. Bennelong points to new retail stores, growth in corporate and expanding the overseas businesses as offering decent growth over the foreseeable future. Flight Centre shares trade on a modest valuation of 14 times forward earnings and on a forecast fully franked dividend yield of 4.2%.

TPG Telecom Ltd (ASX: TPM)

The TPG Telecom share price has recently fallen from an all-time high of over $11 back down towards $9. Bennelong notes that the company owns an extensive fibre network, strong retail consumer telco brands and a decent corporate business. Trading on a forecast P/E of 23 times earnings, and a forecast fully franked dividend yield of 1.6%, TPG Telecom shares may not look overly cheap, but the company is growing quickly. In August last year, the company announced its 2015 financial year results, with revenues and EPS both growing 31% on the prior year.

CSL Limited (ASX: CSL)

The CSL share price has held up reasonably well during this recent market sell-off, now trading at $103. One of Bennelong’s top five holdings, the fund manager says both CSL and Ramsay Health Care Limited (ASX: RHC) should generate reliable earnings growth derived from the increasing healthcare needs of an ageing population, market share gains or the innovation of new products and services. CSL shares trade on a forward P/E of 28 times earnings and a forward dividend yield of 1.75%.

Don't miss your chance to "invest like a Pro"...

Motley Fool Pro -- our most comprehensive and innovative ASX investment service -- will reopen for a brief time, to accept new members. That means you've got the chance to follow along as one top investor puts $1,000,000 of The Motley Fool's own money to work...all in ASX stocks. And you're invited to watch everything that goes into our decision -- 100% FREE! We've dubbed this innovative project, Motley Fool Pro. Click here to step inside for an exclusive look around - it's FREE!

Of the companies mentioned above, Bruce Jackson has an interest in Flight Centre.

HOT OFF THE PRESSES: My #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.