Neil Hennessy, portfolio manager of Hennessy Focus 30 is up 13% in 2008, a stellar performance. In a CNBC interview he laid out his philosophy:

“What we try to do…is buy growth at reasonable prices.. We’re not going to pay more than $1.50 for $1.00 in sales.”He also searches out companies with earnings growth and positive relative strengths.

His top picks today are:

W.R. Grace

GRACE W. R. & CO GRA 25.82 -0.77 -2.9% NYSE

Quote |  Chart |  News |  Profile

In addition to construction, they make are sealants for cans…last year, they sealed over 340 billion cans…if people think the economy is going to be slowing down, they’re going to be buying more canned products.

Oil States

“They’re in the offshore business,” he said.  “At some point in time, Congress is going to wake up and say, ‘We have to drill in our own back yard’…I think this company is poised well for future growth.”

Airgas

The firm makes industrial gases for both the health care and industrial sectors, including “dry ice” for the transportation of food.  Its price-to-sales ratio is less than 1.5.

Track Neil’s picks at:

http://www.trackthepros.com/categories.php?category_id=321