His fund is long four brokerage stocks -- Goldman Sachs (GS), Morgan Stanley (MS), Lehman Bros. (LEH) and Bear Stearns (BSC) -- for a range of reasons, including Far East activity and ongoing prime brokerage growth. Click on the video below for details.
Black also shared a smallcap tech pick -- Ultra Clean Holdings (UCTT):
Most tech stocks sell 16 multiples and up... This is a tiny little company in Menlo Park, they'll do about $400 million in sales, they basically do the assembly of gas induction chambers for Applied Materials, Lam Research and Novellus... it trades at a 9 P/E, 18% return on equity on virtually no debt, and earnings are accelerating as well as the operating margins.
To view a video of the Barron's interview with Mr. Black, click below: