What keeps a five-star fund earning its stars?
Ask Turner Investment Partners portfolio manager Frank Sustersic. He's in charge of the 5-star Turner Emerging Growth Fund, which is up nearly 20% year-to-date.
Just after the Federal Reserve's Beige Book revealed regional slowdowns in the economy, Sustersic told CNBC he favors stocks that won't be affected if the economy slows down.
"My focus isn't if the Fed's going to be cutting 25 basis points or not," says Sustersic. "My stocks with the highest conviction levels, I think should perform well, regardless of the Fed's actions."
So what fits that description?
Sustersic likes Ladish, a forging and casting company that produces components for jet engines, profiting at the moment from a red-hot aerospace sector. "They have very healthy exposure and a fantastic backlog and book-to-bill, as the aerospace cycle is really a multi-year cycle," says Sustersic.
"Also, they have a lot of exposure to Rolls-Royce, and it's great to see that Airbus is turning around their operation, getting some models out the door and they're going to benefit from that."
Another Sustersic pick is Bucyrus International, a heavy equipment maker he sees as a derivative play off the strong commodities cycles.
"Bucyrus makes surface mining equipment and also, now, below-ground mining equipment. They have significant emerging market exposure. The global markets are still growing at much higher rates than the U.S. market," he says.