15 top stock picks from star investors

VeriFone Systems
15 best stocks verifone

Van Tran
Delaware Select Growth

Ticker: (PAY)

Small and large pick: Large-caps

Van Tran focuses on transformation: Companies whose products or industries are in the midst of major change, which tends to depress stock prices. She aims to predict the long-term winner -- she calls it "time arbitrage." That strategy has helped the Delaware Select Growth Fund (DVEAX), which Tran began co-managing in 2010, produce 9.1% annual returns over 10 years, vs. 6.2% for the S&P.

Tran is betting that when the shakeup is complete among companies that handle point-of-sale payments, VeriFone will emerge triumphant. The ongoing shift from cash to plastic and now phones, combined with the entry of new mobile-payment players like Square, PayPal, and Google, has shaken the industry and helped push VeriFone shares down 20% over two years even as the company expects 11% sales growth in 2013. Tran is skeptical that newbies like Square can swing the massive investment needed to scale up. VeriFone, with its software and high market share in point-of-sale terminals -- 60% in the U.S. -- is "not betting their business on any given payment technology," she says. "It's more about working within the existing ecosystem and enabling what might come."

--Ryan Derousseau

- Last updated December 07 2012 12:34 PM ET
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