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More On "Hidden Gems" Stock Picks

We told you earlier about our "Hidden Gems" segment on "Morning Call." Here are some more details. The picks come from Timothy Evnin--who says there are rules of thumb his firm – Excelsior Mid Cap Value & Restructuring Fund – follows when looking to buy turnaround stocks. He broke it down for Michelle Caruso-Cabrera on “Morning Call.”

First off, Evnin says, make sure the stocks are cheap enough. If there are already low expectations for the company, and the shares are priced low, then there’s less risk of a price decline. That’s a good hedge against the risks inherent in turnaround investing.

Also, look for good asset values. “Try to think about the fundamental value of the business,” Evnin says. And most importantly, the company in question has to be capable of pulling off the turnaround plan.

Evnin gave three picks from his portfolio: Kennametal, Autoliv and Aracruz.

Here are three more he gave exclusively to cnbc.com.