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Beat Volatility with Energy Stocks

Monday, 27 Oct 2008 | 11:44 AM ET

David Lundgren, portfolio manager at Burkenroad Mutual Fund, told CNBC that some stocks are looking “very attractive” — and said investors should focus on long-term investment, rather than day-to-day market movements.

How to Play the Volatility
Strategy for investing in the wild market swings, with David Lundgren, Hancock Investments director, equities

“We’ve been under pressure just like the rest of the market, especially this last month,” said Lundgren. “But it’s presented a lot of opportunities. There are a lot of very attractive stocks right now, and, as a strategy, we stay fully invested.”

“The fear is high [among clients]," he said. “[But] we’re continuously trying to get them to focus on the long term.”

Lundgren said the energy sector is looking more attractive.

“I think the selloffs have been over-done in that sector and I think there will be a lot of opportunities there, going forward,” he explained.

Lundgren also said that, although he remains skeptical about the financial sector, there may be some opportunities there in the near future.

“We’ve been underweight financials in our large-cap product since the summer of ’07 and we continue to stay underweight. [However] I would say that in the next month or so, we’ll probably see some opportunities arise there.”

Disclosures:

Burkenroad Mutual Fund’s top holdings include Petrohawk Energy , Darling International, Powell Industries , Hornbeck Offshore Services and Gulf Island Fabrication .

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