Mutual-Fund Mavericks Beat Benchmarks

BOSTON (TheStreet) -- Whoever said it's best for a mutual-fund manager to follow the investment herd may have another thing coming.

That's because investors at three diversified stock funds have managed to post five- and 10-year returns that are among the best by being mavericks. The S&P 500 Index, the benchmark for U.S. stocks, has fallen 9% since December 2000.

One is the Prudential Jennison Natural Resources Fund(PRGNX), with a 19%, 10-year annualized increase, and a 15%, 15-year gain. Think of the compounded returns its long-term investors have. It's getting the job done dancing through the commodities-investing minefield.

Then there's FPA Crescent Fund(FPACX), with a 12%, 10-year annualized advance and an 11%, 15-year return. Its steady increases come from a bizarre portfolio mix, one that currently includes U.S. Treasury bonds, a stake in a Malaysian resort developer, some shorted stocks and a healthy dose of U.S. blue-chips.

And, finally, there's the Intrepid Small Cap Fund(ICMAX), with a 14% five-year annualized return that ranks first out of the 6,897 U.S. stock funds tracked by Morningstar. Its performance is due to a value-oriented investment approach resulting in below-the-radar stocks, each with their own appeal, whether it's as a cash cow or as the owner of a business niche.

A synopsis of each fund and a graphic of one of its top picks follows: