Randall Haase, manager of the Baron Fifth Avenue Growth Fund ( BFTHX - Get Report), makes a strong case for financial-services stocks, which some of his peers are avoiding on concern about further losses.

The fund has risen 11% this year, compared with 6% for the S&P 500 index. Baron Fifth Avenue Growth has fallen an annual average of 7.1% over three years and 1.6% over five years. Morningstar gives the fund three of five stars.

Welcome to'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?

Haase: I am bullish on equities. However, I do not expect it to be a straight line and given the recent rise, a 5% to 10% pullback is not out of the question. I do not think we will break the March 2009 lows, and I do believe that a year from now, stocks will be higher than where they are currently.

What is your top stock pick?

Haase: Our top pick is JPMorgan ( JPM - Get Report). The stock is trading at only 5 to 6 times normalized earnings as we look out over the next three to four years. Under the leadership of Jamie Dimon, JPMorgan has drastically distinguished itself during the financial crisis and is now in a position of financial strength and should benefit as the credit crisis eases, and the economy begins to stabilize.

What is your top beneath-the-radar, or sleeper, stock pick?

Haase: Most certainly it's Toll Brothers ( TOL - Get Report). In 2005, people said the homebuilding industry was no longer cyclical, but secular, as demand from legalized immigration and baby boomers would propel home prices up indefinitely. Today, the same people are saying demand will not come back for years and home prices will go down another 20% to 25%. In reality, home prices are already down 30% and with mortgage rates near a 40-year low, homeowner affordability is now at a 20-year high.

Secondly, annualized housing starts are down 80% from the peak and builders are vastly under-building relative to the annual population growth and annual household formation. As a result, we expect inventories to continue to come down, which should set the stage for a recovery as we have recently witnessed an improvement in new and existing home sales. Toll Brothers is one of the highest-quality homebuilders and has excellent management with a well-capitalized balance sheet.

What is your favorite sector?

Haase: We like the financials now. The industry has been completely recapitalized and the survivors, or winners, will now be in an even stronger competitive position than they would have otherwise been and will now be able to further take market share and grow their franchises as there are now fewer competitors. We also like Wells Fargo ( WFC - Get Report) and Goldman Sachs ( GS - Get Report).

What sector or stock would you avoid?

Haase: We do not own any of the large pharmaceuticals stocks. The industry has already consolidated and it is no longer a growth industry. The old gold standard of investing in the next "$1 billion drug" is meaningless as it doesn't even move the needle anymore. The recent merger announcements within the drug industry are from a position of weakness, not from a position of strength. Lastly, by 2012, close to 70% of all prescriptions will be filled by generics.

Before joining, 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.