NEW YORK (TheStreet) -- It's not easy for value investors to gain exposure to the growth-fueled and often pricey biotech sector.
Ben Nahum, portfolio manager for the Neuberger Berman Intrinsic Value Fund (NINAX) - Get Neuberger Berman Intrinsic Value A Report, said perhaps the best way is to own shares of contract-research company Charles River Laboratories (CRL) - Get Charles River Laboratories International, Inc. Report.
"If you look at Charles River, all the new drugs that came out in 2014, they worked on over half of those drugs that came to market," Nahum said. "So we think it's a reasonable way to participate in the biotech industry."
Shares of Charles River are up 9% so far in 2015. The iShares Nasdaq Biotechnology ETF (IBB) - Get iShares NASDAQ Biotechnology ETF Report, which tracks the sector, is up 14.5% year-to-date. The Neuberger Berman Intrinsic Value Fund is down 2.7% this year, according to fund-tracker Morningstar.
Nahum is also bullish on Verint Systems (VRNT) - Get Verint Systems Inc. Report, which is down 17% year to date, saying the fraud-protection provider has tremendous upside despite being dragged down by foreign-currency woes last quarter.
"At 13 times earnings and the markets that they play in, we consider it a compelling value," Nahum said, adding that the company has recently entered the cybersecurity market with a large contract he believes to be with the Israeli Defense Forces.
Nahum is similarly bullish on memory provider Rambus (RMBS) - Get Rambus Inc. Report, which is up 24% thus far this year, saying the company is far different from the highflier in the Internet bubble.
Finally, Nahum is positive on set-top box provider Arris Group (ARRS) - Get ARRIS International Plc Report, which is down 19% this year, saying worries about cord-cutting destroying the company's business are overblown.
"While everyone is preoccupied with the cutting of the cord and OTT (over-the-top) offerings from people, Arris is quietly consolidating the cable business and we think there is meaningful earnings growth in front of the company at a PE of 12," Nahum said.