Leading ASX fund managers name their top stock picks

Today is the Future Generation Investment Forum, where leading ASX fund managers name their top stock picks.

Future Generation refers to Future Generation Investment Company Ltd (ASX: FGX) and Future Generation Global Investment Co Ltd (ASX: FGG). These are two listed investment companies (LICs) that invest in fund managers who work for free, they don’t charge management fees or investment fees.

Instead, 1% of the NTA is donated to youth related charities. It’s a very good structure and cause.

The Forum brings together some of the fund managers for some investment tips, here are some of them:

Blake Henricks from Firetrail Investments chose Worleyparsons Limited (ASX: WOR), the Australian engineering business. He thinks it’s a good choice due to where we are in the resource cycle and it’s winning more business. Also, resource businesses will have to spend on capital expenditure just to maintain production. It has improved areas of its business like the balance sheet and costs in recent times. Mr Henricks has currently trading with a price/earnings ratio of around 12x.

Nick Griffin from Munro Partners chose Treasury Wine Estates Ltd (ASX: TWE), the owner of a portfolio of wine brands. China is powering its growth along and a rapidly growing middle class is increasing demand for quality Australian wine. Mr Griffin said it’s trading at 20x forward earnings and could grow earnings at 20% per annum for the next three years.

Geoff Wilson from Wilson Asset Management chose Blue Sky Alternatives Access Fund Ltd (ASX: BAF) and Myer Holdings Ltd (ASX: MYR). For Myer, Mr Wilson thinks the new management of John King will turn things around. For the Blue Sky LIC, he thinks the share price could return to the NTA if WAM are given the management of it.

Oscar Oberg from Wilson Asset Management chose Baby Bunting Group Ltd (ASX: BBN), the baby product retailer. He and the WAM team think Baby Bunting can win more of the $2.4 billion baby market. Quite a few competitors have closed in recent times, around 70 stores have left the market, including Babies R Us. He thinks it’s a defensive idea and can reach 80 stores faster than expected. Baby Bunting could grow private label sales, to up to 50% of sales, whilst also growing EBITDA margins from 6% to 10%. He thinks Baby bunting could grow earnings by 30%.

Foolish takeaway

Lots of interesting picks here and all of them are good candidates to beat the ASX over the next 12 months. If I could only choose two choices it would be Treasury Wines and the Blue Sky LIC. They seem like well-priced, defensive options that could grow earnings at good rates over the next few years.

Want some leading ASX stock pick ideas? You should consider all of these growing shares.

JUST RELEASED: Our Top 3 Dividend Bets for 2019

NEW! The Motley Fool’s team of crack analysts has just released a timely report revealing the names and codes of their top 3 dividend share recommendations for 2019. Be among the first investors to get access—FREE, for a strictly limited time. You’ll discover the names of 3 hefty dividend paying companies with what our analysts consider to be solid growth prospects for the year ahead…

The first two currently offer fat, fully franked yields and the third is a surprising REIT offering you the chance to become a landlord with none of the hassle! If you’re looking for hot new ideas, look no further. But you do need to hurry. Snap up your free copy now, before supplies run out!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our top 3 dividend share recommendations right away.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Treasury Wine Estates 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!