If they were re-making "The Graduate," the word of advice whispered to the young man with the fresh diploma would probably be "infrastructure." That's the way John Derrick of U.S. Global Investors might see it, anyway.
His five-star fund is up an average of 14.48 percent per year over the last three years.
"China's infrastructure growth is phenomenal," he told CNBC. "The growing industrialization of China and...the emerging markets is leading to a rapid urbanization...and with that, you need the basic infrastructure of housing, electricity, water and sewer, transportation."
So where are the best plays in infrastructure?
"We've taken what we call a 'picks and shovels' approach," Derrick said. "We look at the building blocks, and I think that starts with steel. You can't have an infrastructure project without steel that's behind it -- so, for instance, U.S. Steel would be an excellent example there."
More picks and shovels?
"You can't have an infrastructure project without cranes to build the buildings, and the roads," he went on. "Manitowoc is a name there...Foster Wheeler, obviously, large, engineering-construction firm, really levered to the energy/LNG/power markets."
Disclosure information for John Derrick was not immediately available.