Two words define Randy Bateman's top stock picks: "techno-industrial" and "small."
Bateman's Huntington Situs Fund is up an average of 18.1 percent per year over the last five years.
Bateman's first pick is Ceradyne, whose ceramic products are used in both war and peace. First, in war.
"A lot of the things that are learned on the battlefield, at the expense of the American taxpayer, find their way, ultimately, into consumer hands," he told CNBC.
"This company makes a lot of ceramic-based body armor and other materials that are used for safety in vehicles."
He sees technology now being used in Iraq moving into consumer products the way GPS devices did after the 1991 Gulf war.
Bateman also likes Trimble Navigation.
"It's involved in using GPSs and lasers in very, very high productivity-enhancing products and services that...have a vast array of applications," he said. "It's a good company, a fast-growing company, and one we feel represents some pretty good opportunities."
Bateman does not personally own either Caradyne or Trimble Navigation, but they are both in his fund.