Despite the market hitting new all-time highs for the second time this week, three stocks still have strong fundamentals behind them, Brian Shapiro of Specialized Performance Advisory Group said Wednesday.
"There's opportunity, but there's risk right now," he said from the SALT Conference in Las Vegas. "The markets are priced for perfection, and we live in an imperfect world, so things can happen which could derail the upmove."
Shapiro's hedge fund outperformed the global hedge fund index by more than 20 percent since its inception in May 2010.
(Read More: Dow, S&P Hit New All-Time Highs)
On CNBC's "Fast Money," he shared three of his top picks.
SL Green: "New York City's biggest landlord," Shapiro said, had a bottom line that was improving as its costs were decreasing due to refinancing of its debt at low interest rates. "I think that stock looks good technically, and I think it has a lot of upmove," he added.
FedEx: "You've got to think of them as a logistics company," he said, noting that the U.S. Postal Service had signed a $10.5 billion contract with the firm. "I think that play could become a global play," he added. "You can't replicate that business. You can't compete with that."
The Hartford Financial: The company was improving its performance thanks in part to an activist shareholder movement and was relatively cheap, trading at 10 times earnings, Shapiro said.
"But more importantly, they had undervalued assets on their books that, with this reflation in assets, have now become probably very fair, if not undervalued on their book value," he added.
"So their book value is probably in the mid-40s. The stock trades at 30. You could buy it at 50 percent discount to book, and I think the book's wrong. I think the book's actually higher."
Trader disclosure: On May 8, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Jon Najarian is long JPM; Jon Najarian is long MSFT; Jon Najarian is long CLF; Jon Najarian is long NUE; Jon Najarian is long OC; Jon Najarian is long XLY; Jon Najarian is long UVXY;
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