Fund Manager: Safest Buys Are Cash-Rich

Perhaps surprisingly, Koontz has been buying shares in Pulte Homes (PHM Quote) lately, despite the continued devastation in the housing market. Koontz, however, says Pulte is a more conservative choice than one might think due to its hefty cash position.

"Pulte will probably exit 2008 with close to $2 billion of net cash on the balance sheet due to their ability to generate cash and they have no debt rollovers," says Koontz. "We believe they will be a survivor in the business and will emerge from the downturn in a few years in a very attractive situation."