USG Corporation

Investing: five top stock picks from a turnaround specialist

Sarah Ketterer, cofounder and CEO of Causeway Capital Management, heads a team of 11 portfolio managers who scout out bargains in the U.S. and overseas. Her list of stock picks reflects her eclectic philosophy. "We have a double-digit weight in banks, and we've bought into industries that are out of favor but have the potential to raise dividends," says Ketterer.

Credit Suisse (symbol CS; recent price, $27) fits the bill. Low interest rates won't pressure profit margins forever. Meanwhile, the ongoing process of shedding poorly performing parts of its investment-banking and bond-trading businesses could free up some $6 billion in excess capital by 2016 that Ketterer thinks...