Bradford Evans
Bradford Evans
Heartland Value Plus

Pick: Teleflex (TFX)

Over the past decade Heartland Value Plus (HRVIX) has returned an annualized 9.4%, clobbering the S&P 500's 4.1%, and vaulting into the top percentile of its category, according to Morningstar. Bradford Evans, who has run the fund since 2006, learned value investing from William Nasgovitz, the fund's legendary former manager. Teleflex, a medical devices company with a $2.4 billion market cap, is burdened by its past, in Evans' view. Its stock is priced well below 2007 highs. Evans thinks Teleflex is being tarred for its past as a mini-conglomerate. Five years ago a costly acquisition helped it begin to transform into a specialist in single-use devices, like catheters, used in critical care and surgical procedures. Today Teleflex has paid down debt and trades below competitors, for 13 times estimated 2012 earnings. As Teleflex introduces new products and raises prices, Evans expects its operating margins to climb from the teens to the low 20s. Says Evans: "We think the company is misunderstood."


By Katie Benner, Ryan Derousseau, Amy Feldman, and Mina Kimes @FortuneMagazine - Last updated June 20 2012: 10:46 AM ET
Join the Conversation
Most Popular

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.