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
, 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?
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?
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?
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.
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.
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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