Five Spot: Wordell Bets on Natural Gas

Don Wordell, manager of the $396 million RidgeWorth Mid-Cap Value Equity Fund(SAMVX Quote), says he's betting on energy companies to capitalize on natural gas prices he considers unsustainably low.

Wordell's fund, which has earned four stars from Morningstar (MORN Quote), is up 14% this year, outpacing the Russell Midcap Value Index's 4.7% advance. The fund lost 4.6% a year, on average, in the past three years, but still beat the index's 11% drop.

TheStreet.com's Fund Manager Five Spot is where America's top mutual fund managers give their best stock picks in five fast and furious questions.

Are you a bull or a bear?

Wordell: We are bullish over the long term. We can't predict the markets over the next three to six months. However, over the next two years we are certain that unemployment will peak, stimulus dollars will begin to work, credit will ease and the economy will again begin to grow.

What is your top stock pick?

Wordell: Our top stock idea right now is International Game Technology(IGT Quote). IGT is a global gaming company that is expected to benefit from the expansion of gaming due to weak state and municipal budgets. Stocks must have three things to get into our portfolios: dividends, valuation and fundamentals. IGT yields 1.5%, trades at less than 12 times expected earnings and has an upgrade cycle beginning over the next 12 months.

What is your top "beneath the radar," or "sleeper," stock pick?

Wordell: Our favorite sleeper pick is Harris(HRS Quote). The stock is oversold due to concerns over the defense budgets under the new administration. Harris is very compelling due to its 2.6% dividend yield and a price-to-earnings ratio of 8. We feel that the earnings are going to be more resilient than the market thinks as the same radios that Harris sells to the government also have a very large commercial market. Also, the company recently completed multiple small acquisitions to diversify the earnings away from defense and the government.