NEW YORK (TheStreet) -- The consumer may be down, but he's not out, says Steve Scruggs, manager of the Queens Road Small Cap Value Fund (QRSVX - Get Report), who owns shares of Cato Corp. (CATO - Get Report) and K-Swiss (KSWS).The mutual fund, which garners four of five stars from Morningstar ( MORN), has returned 24% over the past year, putting it in the 83% percentile in its Morningstar category. Over the past five years, the fund has risen an average of 6.7% annually, better than 90% of its Morningstar rivals.
The truck sector has done phenomenally well but Oshkosh (OSK) shares have lagged. Do you expect this to continue? Scruggs: Oshkosh is a very interesting company. They are well-known for their military trucks as their biggest, most profitable division right now. But they also make fire trucks, cement mixers and commercial lifts. And that whole business has really been in the doldrums lately, except the military aspects but we see things starting to pick up there. We noticed Carl Icahn took an active position a couple of weeks ago. He announced he was a major holder so we think there's a lot for room for operating improvement as well. -- Reported by Gregg Greenberg in New York.
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