Sass bets on airline, hedge fund stock

A ground crewmember prepares to push back an American Airlines Boeing 737-823 jet at a terminal at  Miami International Airport.
Mark Elias | Bloomberg | Getty Images
A ground crewmember prepares to push back an American Airlines Boeing 737-823 jet at a terminal at Miami International Airport.

Martin D. Sass' stock picks for his participation in the inaugural Squawk Box Portfolio Challenge are trades in three popular sectors: airlines, pharmaceuticals and asset management.

Since founding his firm 42 years ago, the CEO and chairman of M.D. Sass has kept the same strategy of focusing on stocks with low valuations and an upcoming tradable catalyst.

Based on Sass' research, here are his recommendations: