ALEXANDRIA, Va. ( TheStreet) -- Timothy Holland, co-manager of the Aston / TAMRO Diversified Equity Fund (ATLVX), says cost cuts at Yahoo! (YHOO - Get Report) under Chief Executive Carol Bartz will help the Web-search company boost profit.
The $11.8 million fund, rated four stars by Morningstar (MORN), has risen 49% during the past year, better than half of its rivals. The Aston fund has returned 2.9% annually, on average, during the past five years, beating two-thirds of competitors.
Welcome to TheStreet'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 bear?Holland: We are bullish. While last year was strong, with above-average returns in the stock market, we remain bullish for 2010. We believe the recession is likely behind us with modest economic growth expected for the year. The recovery will likely be subdued as higher taxes at the local, state and eventually federal level act as headwinds against consumer and corporate spending. In spite of the potential for below-average GDP growth domestically, we believe even modest top-line revenue growth should lead to surging corporate profits as operating leverage takes effect. Furthermore, we anticipate consolidation to take place both domestically and globally as leading companies buy market share through acquisitions. What is your top stock pick? Holland: We really like the Advisory Board (ABCO - Get Report). This company provides best- practice research to over 2,700 member organizations, most of which are health care-related. The company offers about 40 programs to gain access to researchers who are on-call to investigate and report on the best ways common industry challenges have been addressed. Typical programs range from general management issues like IT strategy and physician leadership to business performance and benchmarking in areas such as revenue cycle and supply chain management.