What do a jewelry retailer and a media monolith have in common? Matthew Kaufler.
Kaufler's Touchstone Value Opportunities Fund is up an average of 17.29 percent a year over the last five years.
When asked what stocks he likes, he gets enthusiastic about Time Warner
.
"Time Warner is at a critical inflection point," he told CNBC. "They're essentially a conglomerate, but we think they're going to exit 2008 a much more simplified company than the profile they have currently, which is really rather complex."
He thinks that Microsoft's moves to acquire Yahoo will put pressure on Time Warner to make a critical decision about what to do with its stake in AOL.
Kaufler also likes the jewelry retailer Zale.
"Zale's is a company that has a great history of earning money," he said. "They've sort of lost their way; they've brought in new leadership from the outside; we think it's a great cost-reduction story going forward."
Unlike the inventories of other retailers, there's no question about the value of Zale's.
"We think the predictability of their business profile is quite high," he added.