Tom Forester, manager of the
Forester Value Fund
, says health-care company stocks may have the most room to appreciate as concerns about government-led reform fade.
The fund, which gets
highest rating of five stars, has fallen 8.4% in the past year, less than 97% of its peers. Over three years, the Forester Value Fund has declined an annual average of 1.5%, compared with 10% for rivals.
TheStreet.com'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 a bear?
We are in a trading range of plus or minus 20%. Longer term, I am bullish. We have had a great run as people have realized that we are not in a depression and consumption is not falling off a cliff. However, consumption will not grow as quickly as expected, and this may lead to disappointment.
What is your top stock pick?
My top pick is
. They have their new operating system, Windows 7, coming out in October, and it has been getting strong reviews. They also will have a new version of office next year and their server and corporate products are growing well. It is also trading at a discount to the market.
What is your top beneath-the-radar, or sleeper, stock pick?
is a sleeper. There has been a lot of uncertainty with health-care legislation, and this stock should benefit when the dust finally settles. It is only trading for about 8 times earnings, which is about half of the market.
What is your favorite sector?
Health care for the next few months as investors shake off the fear of health-care legislation. It has stable top lines and very low valuations.
What sector or stock would you avoid?
Some of the energy stocks are overdone on the upside. They are due for a correction. Many of the drillers, and exploration and production companies are pricing in ever-higher crude oil prices. They may be disappointed.
Before joining TheStreet.com, Gregg Greenberg was a writer and segment producer for CNBC's Closing Bell. He previously worked at FleetBoston and Lehman Brothers in their Private Client Services divisions, covering high net-worth individuals and midsize hedge funds. Greenberg attended New York University's School of Business and Economic Reporting. He also has an M.B.A. from Cornell University's Johnson School of Business, and a B.A. in history from Amherst College.