Utopia Fund Manager Follows His Gut

For those looking for some reading material, Sutherland recommends picking up a copy -- or some shares -- of the Washington Post (WPO Quote), which he owns in his Utopia Core Conservative Fund (UTCCX Quote).

"It's not just a newspaper company," says Sutherland. "It has an education component, a cable business. Warren Buffett likes it for Berkshire (BRK.A Quote) but more importantly, I like it. The sum of the parts is worth $1,000 and its trading at $600."

He also owns energy giants BP (BP Quote) and Shell (RDS.B Quote) in this particular fund, a pair of holdings that seems to run counter to his holistic, earth-friendly beliefs.

"These are energy, not oil, companies," Sutherland maintains. "They are also investing in alternative energy and natural gas. Furthermore, oil is not evil in its own right. We need and use oil."

He also owns Australian wind stocks like Babcock and Brown and Viridas, as well as telecom powerhouses Verizon(VZ Quote) and Deutsche Telekom(DT Quote)

His Utopia Yield Income Fund (UTYIX Quote) is geared for investors looking for long-term consistent income. It currently yields 2.7% and Sutherland says he manages it so it has the same peak-to-trough risk as a long-term government bond.

Aside from high-yielding stocks like AT&T(T Quote), the fund holds Ireland-based conglomerate Independent News and Media.

"They have a 6% yield in euros," says Sutherland. "Plus they have big exposure to India, Indonesia and South Africa. They own newspapers, and while newspapers have their trouble in developed countries, they are still the way people get their information in less developed lands."

Sutherland says he is worried about inflation because of the trade deficit, loose money supply and the war in Iraq. As a result, he is obsessed with owning high-yielding stocks.

But will the war drive a Zen-master to own defense stocks?

"It's not really an issue because defense companies are bad businesses anyway," says Sutherland. "Contracts are pulled apart by Congress so weapons can be manufactured in different states. Do you want Congress making manufacturing decisions for your company?"

Peace out.