One of the great things about investing in the share market is that there is a huge range of opportunities to make money.

Equally, there’s a vast number of ways to lose money!

A recent article in the Australian Financial Review (AFR) drew attention to where one top performing fund manager, Mr David Paradice, has been finding winners.

Here are five stocks which Mr Paradice has bought for portfolios he manages, which have all doubled in value in the past year.

Bradken Limited (ASX: BKN) is a leading provider of supplies and services for earth-moving equipment. The group’s operations were affected by the mining downturn with the share price tumbling from around $9 in early 2011 to just 37 cents.

Since hitting that low of 37 cents in January 2016 the stock has rallied to currently trade above $2. It appears Mr. Paradice timed his entry well – his funds went substantial in August – which was around the time that Bradken’s management announced a restructure of the business model and reaffirmed EBITDA guidance of $108 million for the 12 months ending 31 December 2016.

Galaxy Resources Limited (ASX: GXY) is exposed to the “hot” commodity of lithium. Lithium has become a popular commodity amongst investors with demand expected to grow significantly thanks to increased usage of batteries for cars and electricity storage.

With lithium mining operations spanning Australia, Canada and Argentina, Galaxy’s share price has soared 1,100% in the last year!

With the gold price soaring over the past year too (with Australian producers getting an added boost from a weaker domestic currency), Beadell Resources Ltd (ASX: BDR) and Saracen Mineral Holdings Limited (ASX: SAR) shares have performed strongly.

Both stocks are up over 100% since the beginning of the calendar year, providing juicy returns for Paradice compared with his respective entry prices.

Maca Ltd (ASX: MLD) is a mining and civil construction company with significant exposure to the Western Australian economy. This exposure has led to a significant contraction in earnings and likewise in its share price, but importantly the balance sheet and order door are strong.

Since buying a swath of shares in March 2016, Paradice has enjoyed a share price rise of around 100%.

Foolish takeaway

All of these companies have something in common – they operate with exposure to the resource sector. Not all stocks exposed to the resource sector have rallied, as in some cases the market has accurately reassessed forward expectations.

Arguably, the reason why Paradice has been successful in each of these five instances is because he has identified stocks where the market had become unduly pessimistic about the company’s future potential. This pessimism resulted in a temporary dislocation between price and value which he has profited from.

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Motley Fool contributor Tim McArthur has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.