Five Spot: Haase Hot on JPMorgan, Toll Bros.

Randall Haase, manager of the Baron Fifth Avenue Growth Fund(BFTHX Quote), makes a strong case for financial-services stocks, which some of his peers are avoiding on concern about further losses.

The fund has risen 11% this year, compared with 6% for the S&P 500 index. Baron Fifth Avenue Growth has fallen an annual average of 7.1% over three years and 1.6% over five years. Morningstar gives the fund three of five stars.

Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks in five fast and furious questions.

Are you a bull or a bear?

Haase: I am bullish on equities. However, I do not expect it to be a straight line and given the recent rise, a 5% to 10% pullback is not out of the question. I do not think we will break the March 2009 lows, and I do believe that a year from now, stocks will be higher than where they are currently.

What is your top stock pick?

Haase: Our top pick is JPMorgan(JPM Quote). The stock is trading at only 5 to 6 times normalized earnings as we look out over the next three to four years. Under the leadership of Jamie Dimon, JPMorgan has drastically distinguished itself during the financial crisis and is now in a position of financial strength and should benefit as the credit crisis eases, and the economy begins to stabilize.

What is your top beneath-the-radar, or sleeper, stock pick?

Haase: Most certainly it's Toll Brothers(TOL Quote). In 2005, people said the homebuilding industry was no longer cyclical, but secular, as demand from legalized immigration and baby boomers would propel home prices up indefinitely. Today, the same people are saying demand will not come back for years and home prices will go down another 20% to 25%. In reality, home prices are already down 30% and with mortgage rates near a 40-year low, homeowner affordability is now at a 20-year high.