NEW YORK (
) -- Robert Bacarella, manager of the
, says some financial companies are improving, and
Bank of America
stand out as the best picks.
The Monetta Fund surged 43% in the first nine months of the year, surpassing 92% of its competitors. The mutual fund's three- and five-year annual performance is 0.85% and 5.16%, respectively, outperforming 91% and 93% of competing large-cap growth funds.
Welcome to TheStreet.com's Fund Manager Five Spot, where America's top mutual fund managers give their views and picks in five questions.
Are you bullish or bearish?
In light of the market's significant run-up since March, most investors seem braced for a big correction. However, based on my experience, the majority is usually wrong, suggesting that if there is a correction, it will be sharp but short-lived, not giving most investors an opportunity to buy in.
What is your top stock pick?
My top stock pick is based on improving momentum in the financial sector. Specifically,
Bank of America
, which I believe are under accumulation by the large mutual funds and institutional investors.
What is your best "sleeper" stock pick?
Those are in the gaming sector. My favorites include
Las Vegas Sands
, which should be major beneficiaries of an economic recovery in China and the United States.
What is your favorite sector?
My most over-weighted sector is technology, with major holdings in
. These "best of breed" companies do not appear to have debt problems and should exceed earnings expectations as economic conditions improve.
Which sector or stock would you avoid?
I would under-weight defensive sectors such as consumer staples, health care and utilities. These stocks tend to lag market advances as investors seek companies that have the potential to exceed earnings expectations.
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.