The Checkup

Last January, we spoke with Mark Schultz, the portfolio manager of MTB Mid-Cap Growth (AMCRX). He detailed his investment rationale for three stocks that he believed would offer superior growth and benefit from favorable macroeconomic trends. Here is how they fared.

Shares of Lululemon Athletica (NSDQ: LULU) recently hit a new all-time high of $65.09. The yoga-wear maker’s third-quarter revenue grew 31 percent to $230.2 million from the year-ago period. And revenue from its e-commerce segment increased 70.8 percent to $23.9 million, accounting for roughly 

10.4 percent of total revenue. For its fiscal fourth quarter, management expects sales to increase as much as 35 percent from the prior-year period. Schultz believes Lululemon is poised for further growth and its outstanding performance last year reflects this potential. Shares of Lululemon have returned 76 percent since recommendation.

Wireless chip developer Atheros Communications was acquired by Qualcomm (NSDQ: QCOM) in May 2011 for $3.1 billion in cash. Shareholders who tendered their shares upon acquisition enjoyed a 25.2 percent gain from the date of recommendation. Although Schultz likes Qualcomm, the large-cap stock doesn’t fit his mid-cap fund’s mandate. 

Cummins (NYSE: CMI) is a leader in the design, production and distribution of diesel engines. The company’s third-quarter sales rose 36 percent year over year to $4.6 billion. Each of the company’s four operating segments produced double-digit growth. After a disappointing year in terms of stock performance, Schultz expects Cummins’ stock to perform better in 2012. Shares of Cummins have returned 6.7 percent since recommendation.