Giovanny Moreano: Top trader buys 'Internet of Things' play

CNBC "Halftime Report" trader Sarat Sethi bought shares of an electronics audio equipment maker on the belief it can leverage the booming "Internet of Things" trend.

On Tuesday, Sethi, who's a managing partner at Douglas C. Lane & Associates, decided to restructure his model portfolio by selling out of BorgWarner in favor of Harman International Industries.

In the past 12 months, shares of Harman plummeted more than 40 percent on global economic concerns, but Sethi believes the stock is trading at a discount and is poised to move higher.