SAN DIEGO (TheStreet) -- A seesawing stock market favors companies such as insurer Chubb (CB) - Get Report, oil firm Chevron (CVX) - Get Report and Canadian National Railway (CNI) - Get Report, says Dan Neiman, who helps manage the Neiman Large Cap Value Fund (NEIMX) - Get Report.

The mutual fund, which garners a full five stars from

Morningstar

(MORN) - Get Report

, has returned 1.8% this year, beating 69% of its competitors. The Neiman Large Cap Value Fund has risen an annual average of 3.5% over five years, exceeding 97% of its rivals.

Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their best stock picks and views on the market in a five-question format.

Why is value better than growth right now?

Neiman:

That's an interesting question, especially now. Value is better than growth because you have a very volatile market today and growth stocks can whip around wildly. Some companies running up, some companies falling down quickly. But value's always there, and it's a steadier way to go.

One stock in your portfolio is Chubb. Why do you like this insurer?

Neiman:

I like Chubb in the Neiman Large Cap Value Fund because it's got a very sticky customer base. They continually write more premiums than their competitors. And as a value stock, they pay a good dividend and have low debt.

Canadian National Railway is one of your holdings. Warren Buffett of Berkshire Hathaway( BRK-B) is a big fan of the railroads. Why are you?

Neiman:

I'm certainly a big fan of Warren Buffett. I think he's a great value investor. I believe Canadian National Railway has a fantastic transcontinental railway system in place. They are a great value play as far as low debt, low price to earnings. They have great revenue and earnings growth year after year.

One of your larger holdings is Chevron.

Neiman:

The company has low debt, low P/E ratio and pays a nice, strong dividend. And when you're looking at a portfolio as a concept, you need team members, and Chevron's one of those team members that's going to be there for a long time.

You're also a big fan of McDonalds (MCD) - Get Report. But there are worries about consumer spending.

Neiman:

Americans will go to McDonald's no matter the economic environment. It's not that expensive compared to a lot of other options. Plus, they're an innovator. And I think some of their healthier menu options are really catching on with the mainstream public. As for the stock, it pays a solid dividend, quarter after quarter, which you can't beat as a value investor.

-- Reported by Gregg Greenberg in New York.

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