M.D. Sass is betting big on these out-of-favor stocks, expecting growth, recession or not

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M.D. Sass is betting big on these out-of-favor stocks, expecting growth, recession or not
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Ari Sass said his goal at M.D. Sass is to find value in underappreciated companies that are in the midst of a transformation.

When Ari Sass moved into the portfolio manager role at hedge fund M.D. Sass four years ago, it was a long-expected transition at the company his father had built, but Sass said he embraced it as a new opportunity. "Myself and the team really did a lot of introspection," Sass recalled, in an interview with CNBC. "... This was somewhat of a chance … to disrupt ourselves.

has been investing in acquisitions that have shifted its business from more commodity services to technology that provides greater value to the defense department. That's helping it win more contracts and grow its profit margins. "Our thesis was really more around a company somewhat transforming themselves into more value-added services," he said.

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