Sound Strate­gieS

Forbes - - INVESTING -

MIDCAP MOVERS

at the fed­er­ated Kaufmann fund in Pitts­burgh ($6.3 bil­lion in as­sets), port­fo­lio man­ager

stephen Denichilo

and the team pore over be­low-radar mid­caps. op­por­tu­ni­ties abound in iT, health care and in­dus­tri­als. Those make up 75% of the port­fo­lio, which has re­turned 27% in the last year.

MilACRon

Maker of hot run­ner sys­tems for in­jec­tion­mold­ing ma­chines used for iPhones and more. stag­nant on the nYse since its 2015 listing, but Denichilo likes its dou­bledigit or­ganic growth and 12-times-earn­ings val­u­a­tion.

heiCo

fam­ily-owned maker of air­plane parts. Packed, al­ways-go­ing planes spur de­mand; this “freecash-flow ma­chine,” in Denichilo’s words, has re­turned an av­er­age 23% an­nu­ally over a decade.

sheR­win-wil­liAMs

Dom­i­nant in what Denichilo calls the “ama­zon-proof” busi­ness of sell­ing paint. or­ganic sales rose 6% last year; re­cently closed ac­qui­si­tion of coat­ings pow­er­house valspar adds global reach, com­mer­cial cus­tomers— and surg­ing prof­its.

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