Energy Generation Set to Go Nuclear

NEW YORK (TheStreet) -- Ron Altman, co-manager of the Aston/M.D. Sass Enhanced Equity Fund(AMBEX Quote), says a growing acceptance of nuclear energy will create one of the best investment opportunities in the next decade.

The large-cap fund, which invests in both growth- and value-style stocks, has risen 23% this year, better than nearly 70% of its Morningstar peers. Over the past year, the Aston/M.D. Sass Enhanced Equity Fund is up over 15%, more than almost 80% of its rivals.

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

Are you bullish or bearish?

Altman: Given the magnitude of the advance since the market bottomed in early March, I would expect some consolidation of that move to occur. However, considering how much corporate borrowing costs have declined relative to Treasuries and the upside surprises on the earnings front, we believe the longer-term direction for the equity market will have an upward bias. The easy money has been made now. That being said, it will be more of a stock-picking, rather than stock-direction, market.

What is your favorite holding?

Altman: My single favorite stock is Shaw Group(SHAW Quote), an engineering and construction company that is significantly exposed to power-plant construction, particularly nuclear. We believe that over the next five to 10 years, there will be an upturn in nuclear power plant building worldwide. Considering the orders that the company already has in its backlog and those that are being negotiated, the earnings potential for this company is much greater than analysts are willing to state at this time.