Ketchup + Cheese + Coal = Tasty Portfolio
What's on Matthew Kaufler's menu? Ketchup, cheese and coal. He's made those unusual investment recommendations before, and he hasn't changed them.
Kaufler's five-star Touchstone Values Opportunities Fund is up an average of 18.14 percent per year over the last five years.
At the top of his list are companies that stand to benefit from the world's ravenous appetite for electricity: Peabody Energy, Dayton Power and Light, and mining-technology company Joy Global.
"We believe there's a secular theme here, in terms of the need to build out power generating capacity around the globe, that's going to be with us for quite a few years to come," he told CNBC.
When Kaufler's attention turns to the world's other ravenous appetites, he focuses on Kraft.
"Kraft dominates each and every product line that they're in," he said. "They're starting to get the top line moving with good, organic growth rates of about 5-6 per cent now."
He admits Kraft must deal with the rising prices of commodities, particularly cheese.
He also likes H. J. Heinz.
"They pre-announced another strong quarter," he said. "They've now had two or two and a half years of meeting or exceeding expectations, and they have a lot of momentum both on the top line and the bottom line in their business, so we think that stock's going to continue to do well, too."