3 Contrarian Stock Picks for 2015

The contrarian trade: MSI, SYF & KN
The contrarian trade: MSI, SYF & KN   

THE CONTRARIAN STRATEGY

One top fund manager is going against the grain for 2015. Dan Kozlowski runs Janus' Contrarian Fund, a fund that focuses on finding unloved, undervalued stocks. Specifically,companies that have undergone management changes, consolidation or have been spun out.

"Spinoffs are often orphaned, they're not well known. They have different tickers and different coverage on Wall Street," Kozlowski said earlier today on The Halftime Report.

3 CONTRARIAN STOCKS TO OWN IN 2015

Kozlowski's is looking at underperforming spinoffs with strong business models.

"Spinoffs didn't perform that well in 2014 as they have historically so we think spin offs in general set-up pretty well for 2015 but you have to be selective," added Kozlowski. "The ones we have in our portfolio are positioned well."

Motorola Solutions "This is a gem of a business. It produces the government public safety infrastructure for 2-wayradios, generates a lot of cash and is buying back shares."

Knowles Group "Is dominant in the MEMs multi-mode microphone market which basically means that the microphone in your iPhone or Samsung phone are made by Knowles."

Synchrony Financial "Generates a return on assets of 3.5%. That's exceptional within financials."

The Janus Contrarian Fund (JCNAX) is up 15% in the last year.