Two leading investment managers have named three ASX shares that could be market-beaters.
The Future Generation shareholder presentations happened in Sydney earlier today.
There are two Future Generation listed investment companies (LICs), being Future Generation Investment Company Ltd (ASX: FGX) and Future Generation Global Investment Co Ltd (ASX: FGG), that invest in Australian fund managers and pay 1% of the NTA to youth charities each year instead of management fees.
Two of the participating fund managers named a few ASX stock picks at the meeting, those fund managers being Ben Griffiths from Eley Griffiths Group and Geoff Wilson from Wilson Asset Management.
Ben Griffiths
Cabcharge Australia Limited (ASX: CAB)
What may be a surprise to some readers was the choice for the taxi business. It provides dispatch, logistical and payment services for taxis. It also provides vehicle leasing, loans, insurance, smash repairs and driving training.
Over the past five years its share price has almost halved but Mr Griffiths thinks there could be better times ahead with the company heavily investing in developing its technology and its taxi app to challenge Uber.
Nearmap Ltd (ASX: NEA)
Nearmap is a leading aerial imaging business that provides frequently-updated, high-resolution photos to various entities. An example of its use is for management to check how a construction project is progressing.
Nearmap has a 25% market share in Australia but it only has a 1% market share in the US – Mr Griffiths thinks there is a lot of growth potential in this market. Nearmap is also looking at expanding into Canada.
Geoff Wilson
Austal Limited (ASX: ASB)
Aside from going for a non-ASX pick, Mr Wilson chose Austal as an Australian share option.
This is a global ship building business and defence contractor that designs, constructs and provides support for defence and commercial vessels.
Geoff Wilson said he was attracted to this business because it's trading at only 13x earnings yet is growing at 20% per annum. It also comes with a handy unfranked dividend yield of 2.6%.
Foolish takeaway
None of the above picks are what I'd typically look at for my own portfolio, but each one has compelling reasons for why it could be a market beater over the next year or two.
