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Mutual Fund Report: Five-Star Managers

CNBC.com
Wednesday, 30 May 2007 | 4:24 PM ET

Don't let the summer doldrums grab hold of your portfolio. We've rounded up several five-star mutual fund managers to offer up on their latest strategies and best investment ideas.

IMS Strategic Income
It's not your father's bond fund, with Don Shute, IMS Strategic Income Fund senior research analyst and CNBC's Becky Quick

Don Shute -- IMS Strategic Income (IMSIX)

This isn't your father's bond fund. The IMS Strategic Income has the ability to invest in a wide array of income-producing securities. At the moment, Don Shute says the fund put more than one-third of the fund's assets in high-yield bonds and about 20% in common stocks. Shute also can invest as much as 25% of its assets in foreign securities.

The strategy has produced a 6.58% return year-to-date, according to Morningstar. Over three-years, the return is 12.62%.

Shute discusses which investors should own the fund, which he sees as a complement to a more traditional bond fund. You'll also hear about: Coalcorp Mining and Argentina's Industrias Metalurgicas.

Five Star Investors: Media & Telecom
Sectors that can create plenty of opportunity for investors, with Henry Ellenbogen, T. Rowe Price portfolio manager and CNBC's Joe Kernen

Henry Ellenbogen -- T. Rowe Price Media & Telecom Fund (PRMTX)

A series of bets in the rapidly changing media and telecommunications industries have allowed Henry Ellenbogen to nearly triple T. Rowe Price Media & Telecom Fund's assets over the past five years.

"This is a fund that really does focus on absolute returns," Ellenbogen told CNBC's "Squawk Box." "We're not concerned about any benchmark."

Ellenbogen tends to concentrate his investments in a few areas where he sees growth potential. Right now, one of his favorite segments is the providers of wireless data and voice towers such as American Tower, Crown Castle and SBA Communications.

He also discusses why he likes "all-you-can-eat" wireless providers such as Leap Wireless and Metro PCS and outdoor advertising companies.

"You can't Tivo traffic," Ellenbogen says, discussing Lamar Advertising and Clear Channel Outdoor Holdings, his top picks in the billboard space.

Value & Contrarian Funds

Five Star Investors - Value Investing
Best ideas for how you can profit now, with Bill Fries, Thornburg Investment Managment portfolio manager & CNBC's Erin Burnett

Bill Fries --Thornburg Value (TVAFX)

The Thornburg Value fund has a 5.07% return year-to-date, according to Morningstar. At the moment, the fund's heaviest sector concentration is diversified financials, with about 12% to 13% of the fund's assets invested in the sector. Picks in this sector include everything from money manager Charles Schwab to insurer American International Group.

One of the latest additions to this position was Wachovia, fund manager Bill Fries says, speaking with CNBC's Erin Burnett and Mark Haines at the New York Stock Exchange. Fries discusses the reasons behind this pick and his expectations for Wachovia shares.

Fries and his team look for traditional value stocks, but also consider companies that have been consistent earnings performers such as Johnson & Johnson and WellPoint, or are "emerging franchises," which are rapidly growing companies that are in process of establishing a leading position in a product, service, or market.

Fries also discusses another of his favorite investment ideas right now: Level 3 Communications.

5-Star Investor: Tocqueville
Using a contrarian approach to provide big returns, with 5-Star fund manager Robert Kleinschmidt, Tocqueville and CNBC's Michelle Caruso Cabrera

Robert Kleinschmidt --Tocqueville Fund (TOCQX)

Never let it be said that Robert Kleinschmidt follows the herd. He’s racked up his five-star rating by taking a contrarian approach with his Tocqueville Fund.

“From our point of view, the stock market isn’t necessarily a great place to get rich, but it’s a pretty good place to stay rich and a pretty good place to preserve your capital if you can be reasonably good at not losing money,” Kleinschmidt told "Morning Call." He discusses how he focuses on stocks where the risk of losing money has been limited. Usually, these are stocks that are out of favor with investors for one reason or another.

So what are some of his top investment ideas right now? Find out why Kleinschmidt likes some Japanese stocks and the exchange traded fund that mimics the yen.

“It seems the whole world is short the yen,” he says.

Other picks are technology stocks such as Microsoft and Cisco Systems and Murphy Oil.

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