The 2013 All-America Research Team: Gaming & Lodging, No. 3: Carlo Santarelli

Deutsche Bank Securities’Carlo Santarellirises one notch to the third spot. “His method of supporting growth and earnings analyses with underlying data has led to some good picks,” affirms one portfolio manager. One example: In December, Santarelli, who follows 31 companies, upgraded International Game Technology from hold to buy, at $13.87, citing in part its free cash flow generation and accelerating earnings growth. By late August shares of the Las Vegas–based manufacturer of slot machines and other gaming equipment had jumped 36.2 percent, to $18.89, against a sector rise of 16.1 percent. Looking forward, Santarelli is particularly bullish about the prospects for Las Vegas–based Wynn Resorts, “ahead of a slew of new developments” in Macau, he reports. “He’s unmistakably one of the best on the Street,” proclaims another fund manager. —Ben Mattlin