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4-Star Biotech Stocks

Will Muggia likes biotech. Muggia's Touchstone Mid-Cap Growth Fund is up an average of 14.9 percent annually over the last three years -- and even this year, it's up 1.8 percent. So what are the 4-star portfolio manager's picks?

Recommendations:

Muggia likes Celgene, "one of the fastest-growing biotechnology companies in the world today. He expects the firm to have 40 percent earnings growth.

He praises Elan Pharmaceuticals for its auto-immune and Alzheimer's medicines. He says the latter illness has barely begun to be addressed medically, with plenty of potential left.

CNBC.com Web Exclusive:
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For CNBC.com readers, Muggia also recommends Chesapeake Energy.

Disclosures:

Muggia personally owns both Celgene and Elan, and the stocks are the largest holdings in his fund.

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