Bill Nygren, portfolio manager at Oakmark Funds for four decades, said he is focusing on cheap stocks that return meaningful capital to shareholders with the stock market trading at record highs. The widely followed value investor revealed that he is trying to find hidden gems that are a lot cheaper than the average stock in the S & P 500, which is trading at 23 times forward earnings. Nygren said almost half his holdings have multiples less than 12 times earnings. While his picks don't offer exceptional organic growth, he looks for the companies that have solid repurchase or dividend programs in place. "These companies don't have great organic growth opportunities, but they're generating a lot of free cash flow that doesn't need to be reinvested in the business and they do buybacks and di

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