OneMain Holdings, the nation's largest subprime lender, should soar if President Donald Trump is able to execute on his promises to boost the economy and shrink the wealth gap, value investor Bill Miller told CNBC on Thursday.
"OneMain ... is kind of the perfect Trump stock ... to the extent that prosperity is more widely distributed," said the founder, chairman and CIO of Baltimore-based LMM, which has about $2 billion in assets under management.
"[OneMain] trades at around 6 ½ times earnings around book value. It was $50 a year and a half ago. So we think it's probably worth about $60 in two years. That's almost three times your money," Miller said.
Shares of OneMain, with a $3 billion market value, were around $23 at midmorning on Thursday.
LMM holds about 2.8 million shares of OneMain, as of the firm's Sept. 30, 2016, 13F filing, valuing the stake at around $64 million.