Contrafund Makes Sense for Kids

As my wife makes our contributions to our kids' accounts today, I am gratified once again to have placed so much trust in Will Danoff at Fidelity's Contrafund.

Because of 13%. That's right. Danoff, who worked at my wife's old hedge fund with her, is up 13% this year.

I don't know Danoff personally, sure wish I did. He's unbelievably good. And he's done it again with great numbers. Sometimes when you look at his portfolio, at least as recently as they let you -- Sept. 30 -- you get blown away by this man's clairvoyance. Blown away because he runs a ton of money, yet is as nimble in stock selection as a tiny hedge fund without the big transactions and ins-and-outs that wreck so much performance.

His top position is Avon (AVP - commentary - Cramer's Take), a stock I don't care for. But I can recognize a weak-dollar play from a mile away, and Avon's a fantastic weak-dollar play. Next is Berkshire Hathaway (BRK.A - commentary - Cramer's Take). I always thought this play made a lot of sense; if you are running billions, give some of it to Warren Buffett. Danoff's given a ton to the man, and that's paid off huge.

Then it's back to the weak dollar thesis with 3M (MMM - commentary - Cramer's Take), a stock I have been championing here as the right industrial to own for the declining greenback. It's just an excellent choice.

His fourth biggest position is EnCana (ECA - commentary - Cramer's Take), a stock I wanted to buy more of for Action Alerts PLUS Thursday into the oil weakness. This is simply the most undervalued resource equity in the world right now and you have to take advantage of every dip in crude to get in it.

Finally, rounding out the top five is Yahoo! (YHOO - commentary - Cramer's Take). You knew that Danoff had to have some GERQY in that top five. (Remember, GERQY is Google (GOOG - commentary - Cramer's Take), eBay (EBAY - commentary - Cramer's Take), Research In Motion (RIMM - commentary - Cramer's Take), Qualcomm (QCOM - commentary - Cramer's Take) and Yahoo! (YHOO - commentary - Cramer's Take).) He's got the one I like best because it has the least risk, best management and most seasoning.

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At the time of publication, Cramer was long EnCana and Yahoo!.

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column to [e-mail]. Listen to Cramer's RealMoney Radio show on your computer; just click here. Click here to buy Cramer's latest book, "You Got Screwed!" Click here to order Cramer's autobiography, "Confessions of a Street Addict."