Hartford Capital Appreciation Shines

Carmen sees "big opportunities" across the sector. "We think the shares are undervalued in relation to current earning streams and in particular in relation to the pipelines."

He mentions no names, because of Wellington's compliance rules, but the most recent regulatory filings show that drug company Schering-Plough(SGP Quote) is the fund's biggest holding, with just under 2% of assets, and medical devices maker Medtronic(MDT Quote) is second. The fund also has a significant stake in pharmaceutical company Sanofi-Aventis (SNY Quote). However, as the fund is divided into five tranches, there is no way of being certain that Carmen made these investments.

Another investment theme Carmen likes is alternative energy. "Alternative energy is going to be a much bigger piece of the pie over the next few years," he says. Among his favorite ways to play it are companies that make agricultural fertilizers. The are two reasons: There's rising demand for agricultural products to be used for energy. And then there's booming demand for better food, especially protein, from emerging markets. "We like the whole fertilizer food chain," he says.

"When I first started looking at fertilizer-based companies," Carmen recalls, "some people were laughing at me and asking, 'What's a growth manager doing looking at fertilizer companies?' But these trends aren't cyclical -- they're secular."

Meanwhile, Carmen's view on the consumer economy right now isn't quite so cheerful. He's steering clear of discretionary consumer stocks -- the ones that benefit from the extra dollars you have in your wallet or purse after you pay for your home, food and other necessities. "I have been overweight [the sector] historically," he says, "and now I'm underweight. That has been the bedrock of my portfolio for some time."