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Westwood Fund Manager: Liquidity Is Key To Stocks

Investors have seen some nice gains in both energy and commodity stocks over the past few months. But as we head into 2007--is the party over? Value investor Susan Byrne says the "celebration" will continue. Byrne is Chairman and Chief Investment Office at Westwood Holdings Group and her Equity Triple A Fund was crowned the number 1 large cap value fund last year by Lipper--returning over 13%.

She was Maria Bartiromo’s guest today on CNBC’s "Closing Bell."

Byrnes said people have been talking about liquidity and that’s what investors need to watch. She says there is a world wide liquidity going around--looking for its best returns. She says as long as that doesn’t change--the markets should do very well.

In the energy group--Byrne suggested that oil could settle around $55 – $60 a barrel. She explained that at that price-- oil companies can make very nice returns but they have to have rising production – so you want to focus on companies that have rising production. Byrne likes Murphy Oil . They put money into Malaysia and are about the reap the rewards. And she likes Apache .

When Maria asked what’s the one stock or sector She wouldn't touch--Byrne replied that she’s pretty concerned about prolonged flat yield curves and their effects on regional banking – She said, “They’re not interesting to me.”

Analyst disclosure: ADP, MUR, APA, HOT, XOM, Byrne owns stocks indirectly through Westwood Holdings funds.

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  • Bill Griffeth

    With almost 30 years experience in business television, Bill Griffeth is co-anchor of the 3 p.m. ET hour of CNBC's "Closing Bell."

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    Kelly Evans is co-anchor of CNBC's "Closing Bell."