Andrew Lazar
Andrew Lazar

Andrew Lazar

 First Team

Andrew Lazar

Lehman

Second Team

Terry Bivens, Bear Stearns

Third Team

Eric Katzman, Deutsche

Runners-Up

David Driscoll, Citi;

Pablo Zuanic, JPMorgan


“The go-to guy in the food group” is how one investor describes Andrew Lazar of Lehman Brothers, who finishes first for a fifth consecutive year. Lazar, 41, placed Kellogg Co. atop his firm’s favorites list in February, saying the Battle Creek, Michigan–based cereal manufacturer deserved a premium valuation relative to the heightened risks associated with its recent restructuring initiatives. By mid-September the stock had risen from $48.56 to $56.15, a 15.6 percent gain that outpaced the sector’s advance by 12.8 percentage points. “Lazar is able to filter through the many moving parts and focus on the big drivers of the stocks,” explains one portfolio manager. Terry Bivens of Bear Stearns repeats at No. 2 because he is “among the most responsive and accessible analysts in the group,” according to one money manager. In July 2006, Bivens published a report on H.J. Heinz Co., which at the time was involved in a proxy fight with activist shareholders. Bivens believed that management at the Pittsburgh-based food manufacturer would implement many of the structural changes the activists were demanding, resulting in higher profit margins and more valuable shares. He was correct. Heinz was up 14.9 percent, from $40.15 to $46.12, through mid-September 2007. Eric Katzman of Deutsche Bank Securities advances from runner-up to third and impresses investors with his “well-rounded perspective” and “strong contacts.” Katzman named William Wrigley Jr. Co. his top pick for 2007, citing the Chicago-based chewing gum manufacturer’s growth prospects. The stock was up 22.2 percent this year through mid-September.