Five Spot: Stimpson Still Bullish on Tech

Robert Stimpson, manager of the River Oak Discovery Fund(RIVSX Quote), said he favors international equities to those of the U.S.

The fund has risen 23% this year, beating 95% of rivals. It has fallen an annual average of 5.5% over three years, compared with a decline of 8.9% a year for competing funds.

Welcome to TheStreet.com's Fund Manager Five Spot, 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?

Stimpson: I'm a bull, particularly on international markets and companies with high exposure to the international markets. A swifter recovery overseas will help pull the U.S. out of its recession. I'm bullish on international markets because the significant worldwide economic stimulus is more likely to benefit markets that are not experiencing the sharp deleveraging seen in the U.S.

Outside of Europe, international consumers aren't saddled with underwater mortgages or houses that can't sell/afford, poor savings rates and credit card debt. Domestically, the excesses from the past several years will be corrected and consumers will pay down debt, start saving more and rethink buying a second home, even if they can get a mortgage for it. Overseas, however, excess income will be spent on discretionary items, like cellphones, cars, entertainment, etc. Given the amount of economic stimulus globally, a recovery is a matter of when, not if, and I want to be prepared for it.

What is your top stock pick?

Stimpson: In the small-cap space, AsiaInfo Holdings(ASIA Quote) is positioned to benefit from growth in cellular traffic in China. The company provides software and services to Chinese telecommunications operators.