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Fund Manager Names Overlooked Mid-Cap Stocks

Andrew Fisher
Friday, 30 Nov 2007 | 4:05 PM ET

Mid-cap stocks may be often overlooked -- but they can make an investor a lot of money, says Tony Dong.

Dong is the portfolio manager of Munder Mid-Cap Core Growth Fund, which is up 19 percent year-to-date.

He offered stock picks with low profiles and high potential: companies based in the U.S., but which do much of their business overseas.

Mid-Cap Mutual Funds
Opportunities in mid-cap mutual funds, with Tony Dong, portfolio manager of the five-star Munder Mid-Cap Core Growth Fund.

There's BioMarin, a biotechnology company. Dong says it may be immune to the danger of biotechs burning through prodigious amounts of cash with all their research and development.

"They actually have two drugs that are already approved, so this company will be profitable in 2008," he told CNBC.

LKQ stands for "Like Kind and Quality." It's an auto-parts company that has been dealing in recycled parts.

"Insurance companies are trying to urge repair shops to use recycled parts, and also aftermarket parts, to help keep costs down," Dong said.

"They made a recent acquisition...called Keystone, which provides aftermarket parts. So now, LKQ is a one-stop shop, providing both recycled parts and also aftermarket parts."

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His third pick is Central European Distribution, an American alcoholic beverage distributor that operates primarily in Europe.

"Most of the business is done in Poland," he said. "Central Europe and Eastern Europe are actually showing pretty good growth relative to the rest of Europe."

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