Auxier targets fundamentally sound companies, with strong balance sheets and predictable cash flows, whose shares have been hurt by seemingly fixable problems. His roughly 120-stock portfolio is headlined today by blue-chips Philip Morris International (PM), Wal-Mart Stores (WMT), Coca-Cola (KO) and payroll processor Paychex (PAYX).

Auxier targets fundamentally sound companies, with strong balance sheets and predictable cash flows, whose shares have been hurt by seemingly fixable problems. His roughly 120-stock portfolio is headlined today by blue-chips Philip Morris International (PM), Wal-Mart Stores (WMT), Coca-Cola (KO) and payroll processor Paychex (PAYX).

Auxier targets fundamentally sound companies, with strong balance sheets and predictable cash flows, whose shares have been hurt by seemingly fixable problems. His roughly 120-stock portfolio is headlined today by blue-chips Philip Morris International (PM), Wal-Mart Stores (WMT), Coca-Cola (KO) and payroll processor Paychex (PAYX).

Paychex, which handles payroll and human-resources tasks for small- and mid-sized businesses, also has taken a hit in the last 12 months, falling 21%. Auxier expects the shares to recover with the economy. Paychex' revenue continues to grow, and its human-resources business is taking market share.

He is also making bets on lesser-known names such as Alliance One International (AOI), a leaf-tobacco producer, with a $350 million market value. He's betting the stock can double from a recent $4 a share. "When you can buy cash flow, you gotta buy it," says the Warren Buffett disciple.

Auxier also sees good value in corporate debt, and has invested more than 20% of his fund's assets in bonds of companies such as Waste Management (WM), Time Warner (TWX) and Dr Pepper Snapple Group (DPS). He owns Dr Pepper stock, too, and it's his best performer this year, up 63%.

Auxier also sees good value in corporate debt, and has invested more than 20% of his fund's assets in bonds of companies such as Waste Management (WM), Time Warner (TWX) and Dr Pepper Snapple Group (DPS). He owns Dr Pepper stock, too, and it's his best performer this year, up 63%.

Auxier also sees good value in corporate debt, and has invested more than 20% of his fund's assets in bonds of companies such as Waste Management (WM), Time Warner (TWX) and Dr Pepper Snapple Group (DPS). He owns Dr Pepper stock, too, and it's his best performer this year, up 63%.