JERSEY CITY, N.J. ( TheStreet) -- Christopher Towle, manager of the Lord Abbett Capital Structure Fund ( LAMAX), buys what he calls "packages," or different types of investments in the same company. He's bullish on some global generic-drug firms.The $1.4 billion Lord Abbett Capital Structure Fund follows such a strategy, providing exposure to equities, bonds and convertible securities. The mutual fund has risen 4.1% this year, putting it ahead of 85% of its Morningstar category peers. Over the past year, the fund has returned 35%. 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 economy in a five-question format. Are you bullish or bearish? Towle: After a declining trend that started in 2007, corporate earnings now appear to be in the early stages of an upswing. The scale of the profit increases may not be as dramatic as we've seen in past recoveries, but we believe a revival is currently under way. Given the trajectory of earnings growth on the S&P 500 Index and an earnings multiple of 16.5 or 17 -- which is justified in an environment of historically low interest rates -- that may indicate a market level of 1,300 to 1,400. That could imply a period of steady returns heading into 2011 and beyond. From a monetary-policy perspective, it is widely recognized that the Federal Reserve will lift interest rates in the not-too-distant future. Even when that happens, the interest-rate environment will remain conducive to economic expansion as corporations' excess capacity should keep any inflationary surge at bay. What is your top investment pick? Towle: We're positive on a package of investments in the health-care industry. The term "package" refers to multiple investments that may be in the same company, but at different points in its capital structure. Depending on where we see the most attractive opportunities at a given time, these investments could be in the company's common stock, convertible securities or bonds. In terms of sectors, some global generic-drug firms, such as Mylan ( MYL), may capitalize from the patent expirations of several name-brand drugs and from a potential increase in market share as health-care reform takes place. Elsewhere, we believe some specific biotech companies have products that may be attractive to large pharmaceutical companies that may have dwindling drug pipelines.