I'm always interested to see what moves some of the top-performing managers make. I think it's interesting seeing how often they manage to pick out a hidden gem that goes on to become one of the top performers over the next year or two.
One share that is favoured by a few different funds, including listed investment company (LIC) WAM Capital Limited (ASX: WAM), is Emeco Holdings Limited (ASX: EHL).
Emeco claims to be the world number one in mining equipment rental with tailored fleets of maintained, best-in-class equipment. The business is also aiming to become the world's leading earthmoving solutions provider.
Over the past five years Emeco's share price has been a bit of a rollercoaster, but the past year has been very good for shareholders with the company up by almost 200%.
It is continuing to deleverage the balance sheet whilst utilisation and contract rates are recovering as well.
Not only is the global economy continuing to perform but the resource industry has rebounded significantly over the past two years. Emeco could have further to run with the recovery.
Emeco offers customers 'EOS', a fleet management and mining technology platform. EOS measures and streams fleet payload performance, dig rates, operational efficiency and machine utilisation in real-time.
It also allows customers to compare the mine performance with over 500 similar operations around the world. Data is very valuable in every industry, particularly in the resources industry because costs and efficiency are key for profitability.
Foolish takeaway
I regularly write that I'm personally not interested in resource-related shares and this would apply to Emeco too. However, that doesn't mean to say you can't create good returns if you buy at the right price.
