Profiting From 'Values'
Now lets look at the "good" fund. The
Ave Maria Catholic Values Fund invests in companies that do not violate the core values and teachings of the Roman Catholic Church. The fund's performance has put it in the top half of Morningstar funds, having generated an average annual return of 15%-plus over a five-year period.
One of the stocks that Ave Maria owns is
Kinetic Concepts (KCI Quote - Cramer on KCI - Stock Picks), a wound care and therapeutic products medical technology company. The company just last week reported a 27% jump in first-quarter earnings due to an increase in both domestic and foreign sales. The stock has a forward P/E of 9 and a PEG of 0.8.
Kinetic shares are also owned by
Renaissance Technologies, a New York-based hedge fund managed by Jim Simons. Renaissance also owns shares of the non-socially responsible military aircraft manufacturer
Lockheed Martin (LMT Quote - Cramer on LMT - Stock Picks). Lockheed's first-quarter earnings were up 5.8% on a 7.6% revenue increase. The stock has a forward P/E of 13, a PEG of 1.3 and a yield of 1.6%.
Another Ave Maria stock is
Legg Mason (LM Quote - Cramer on LM - Stock Picks), an investment management company and sponsor of mutual funds. The stock has a P/E of 13, a PEG of 1.7 and pays a yield of 1.6%.
Legg Mason stock is also owned by
Basso Capital, a $1.1 billion investment firm that was founded in 1994. Basso also holds shares of
Clean Harbors (CLHB Quote - Cramer on CLHB - Stock Picks), a "green" company that provides environmental services. The company, which is set to report quarterly earnings next week, offers a forward P/E of 20 and a PEG of 1.2.
For more "good" and "bad" stock ideas, check out the portfolios of the
Ave Maria Catholic Values Fund and the
Vice Fund at Stockpickr.com.
James Altucher
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