Some of our larger holdings in this space include the Midwestern convenience-store chain Casey's General Stores ( CASY) and Ruddick Corp. ( RDK) -- the owner of Harris Teeter supermarkets. One of our newer holdings is Seneca Foods ( SENEA), the largest private-label producer of canned vegetables.

Which sector or stock would you avoid?

Shircliff: We remain cautious on the banking industry. We had modest investments in banks leading into the credit crisis, and we continue to be significantly underweight. The regulatory environment for banks remains highly uncertain, credit losses continue to climb, and it's not clear that in the future the banking model will merit the valuations we've seen in the past. There are still a lot of companies in the financials space with better prospects and more visibility than most banks.

-- Reported by Gregg Greenberg in New York.
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.

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