The Motley Fool

Top managers pick their favourite share ideas

I’m always curious about what the top-performing fund managers think are the next stocks to own for market-beating performance.

Investors had come together at the Future Generation Investment Company Ltd (ASX: FGX) Forum.

Here are some of their top picks:

Lifestyle Communities Limited (ASX: LIC) – Ryan Reidler at Cooper Investors

Lifestyle Communities is one of the country’s largest retirement village operators, it has 16 communities and over 2,700 homeowners with 1,600 homes under development.

It has a promising future due to the rising number of people over the age of 50. More residents should mean more fees for Lifestyle.

I’m quite bullish on the long-term future of the sector, but the short-term could be bumpy with rising interest rates.

Qantas Airways Limited (ASX: QAN) – Philip King at Regal Funds

He described Qantas as the cheapest stock in the ASX 100, with a very low price/earnings ratio yet the revenue and earnings are growing. He predicted that earnings will be better than expected, that Qantas will pay a fully franked dividend and its inclusion in the MSCI index could lead to a sharp price increase.

Qantas is an interesting pick. Its earnings are quite dependent on the oil price, which has risen steeply in recent times.

Freedom Foods Group Ltd (ASX: FNP) – Ben Griffiths at Eley Griffiths

Freedom Foods is a leading provider of health foods in Australia and it is doing very well in the industry.

There is a growing demand for healthy food in Australia and abroad, which should lend to growing revenue and profit for the company over the next few years.

Other picks

Some of the other choices were:

Sensata Technologies by Wilson Asset Management’s Catriona Burns.

Facebook by Domenico Giuliano from Magellan Financial Group Ltd (ASX: MFG).

McPherson’s Ltd (ASX: MCP) by Matthew Kidman from Centennial Asset Management.

Foolish takeaway

All of the above choices seem like a solid group to me. If I had to halve the list I’d go for Lifestyle Communities, Sensata Technologies and Facebook as I like the prospects for those companies over the next five years.

Another top company I really like the prospects of is this top stock that is just starting to expand into Asia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited. 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 Scott Phillips.

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