Fund Manager: Buy Small Cap Consumer(!) Stocks
Bill McVail of the Turner Small Cap Growth Fund thinks size matters, and offers some strong arguments for riding out of the recession with a portfolio full of small-cap stocks.
"We think the consumer is going to start doing better in 2009 and 2010," he told CNBC. "We're focusing more on the restaurants and the retailers; we think the stimulus package will get them going sooner."
"We like names like Texas Roadhouse, casual dining space; Wendy's, a nice restructuring story," he said.
"We like Eaton Vance, one of the few large-cap value funds that stayed away, in large measure, from heavy exposure to the financials; and then a couple of tech names, Atheros and PMC Sierra, where demand is staying stable in a very tough tech spending environment."
McVail's firm owns shares of Texas Roadhouse, Atheros, and PMC Sierra.