Former All-America Research Team Rising Star Philip Gresh III vaults from runner-up to claim his first top-three ranking, at No. 2. “Phil’s biggest strength is the rigor he brings,” asserts one fund manager. “He really digs deep to get better information and compile more thoughtful models to help you understand what’s going on.” That discipline has led the J.P. Morgan analyst to advise overweighting Rock-Tenn Co., a Norcross, Georgia–based carton maker. Gresh believes the company will see improved performance thanks to synergies from its 2011 acquisition of Smurfit-Stone Container Corp., which will cease being an albatross, and cited rising containerboard prices as well as Rock-Tenn’s free cash flow and declining debt. Since his February 2013 upgrade from neutral to overweight, at $86.01, the stock jumped 29.2 percent, to $111.11, and outdistanced the broad market by 21.5 percentage points, through August. In all, Gresh follows 17 stocks. “He is an important aid to our decision making,” says another money manager. — Ben Mattlin |
The 2013 All-America Research Team: Paper & Packaging, No. 2: Philip Gresh III