Value investor: Buy this biotech stock

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Oscar Schafer, chairman of Rivulet Capital, is making a bet that shares of a small-cap biotech company will rally on the back of stronger earnings and sound fundamentals.

The value investor decided to add shares of ANI Pharmaceuticals to his "Squawk Box" model portfolio, in a move he hopes will catapult him to the top spot in the competition.

So far this year, Schafer's portfolio is up 11 percent compared with a return of 2.4 percent for the .

Here's how he's managed to beat the market this year.