20 top picks from 20 star investors

A time-tested group of elite fund managers offer their best stock ideas for 2014.

Vitamin Shoppe

sto23 vsi

Frank Sustersic
Turner Emerging Growth

Ticker: (VSI)
Category: Health & nutrition

Small can be sublime. So it is for the $260 million Turner Emerging Growth Fund (TMCGX), run since 1998 by Frank Sustersic. During that time it has delivered 18.9% annualized returns, obliterating the 9.1% average for Morningstar's small-growth category. His current favorite stock: Vitamin Shoppe, the national retail chain that sells supplements, vitamins, and weight-loss products. "I love to find stocks that are growing irrespective of what's happening with the economy," says Sustersic, who notes that many consumers are seeking holistic health approaches. Vitamin Shoppe's stock has slipped 6% in 2013 because of slowing sales growth at existing stores and missing a target for a 10% increase in new-store openings. Sustersic thinks investors have overreacted. "The store count will still be up 8% or 9%," he says. Sales at existing stores edged up 2.6% last quarter, below the company's usual 6%-plus. Sustersic contends the quarterly comparisons were tough due to gangbuster 2012 sales of "metabolism boosters" promoted by TV's Dr. Oz. "The quarterly comparisons become much easier going forward," says Sustersic. "The reality is that most retailers would kill for 2.6% comps anyway." --J.B.

  @FortuneMagazine - Last updated December 05 2013 07:17 AM ET
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