Five Spot: 'Hated' Natural Gas Set to Rebound

NEW YORK (TheStreet) -- Jerry Jordan, manager of the Jordan Opportunity Fund(JORDX Quote), says natural gas prices are ready to rebound and a tight coal market means boom times for Massey Energy(MEE Quote).

The fund, which gets Morningstar's highest rating of five stars, has risen 17% this year, better than 95% of its peers. Over three years, the Jordan Opportunity Fund has gained an annual average of 0.15%, compared with a loss of 9.6% for rivals.

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 bullish or bearish?

Jordan: I'm a bull. The economy is out of recession for 2009. There is a risk of a double-dip in 2010 or 2011, but for now, the recession risks are off the table. You have to own stocks as long as the economy is growing. The recent correction in oil and interest rates helps set the market up for its next leg higher. I think we'll see 1,000 to 1,100 by year-end.

What is your top stock pick?

Jordan: Our top pick is Massey Energy. We expect industrial production to explode over the next six to 12 months, and the metallurgical coal market is still pretty tight and will get a lot tighter as steel production ramps back up. The whole world is going to have to reaccelerate as current production is well below current, albeit reduced, demand.

What is your top "sleeper" stock pick?

Jordan: Definitely Chesapeake Energy(CHK Quote). Natural gas is the most hated commodity, and I think prices are bottoming, and Chesapeake has good acreage and solid production growth. I don't think nat gas prices will be all that robust this year, but we should be able to get back to $5 or 6 by year-end, then maybe $9 to $10 by year-end 2010.