Brian Macauley looks for companies operating in large markets that can grow their market share. This year, which direction the stock market could go has been a point of contention. His sweet spot is smaller companies operating within a large market that have the potential to go from a 5% market share to 25%. An attractive growth opportunity; his picks typically have a small market share in a large market and are well-positioned to gain market share. CarMax (KMX) is another example of a business expected to grow its market share within the used car sector.

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Persons: Brian Macauley, Lauren Goodwin, Morgan Stanley, Hennessy, Macauley, Sunbelt Organizations: Hennessy Funds, Morningstar, Sunbelt Rentals, Fund Locations: North America