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Be fully invested at all times: Pro

The American Century Mid-Cap value fund is beating the street. It's up 12 percent in the past 12 months while its benchmark, the Russell Mid-Cap Value Index, is up just 8 percent.

"We're looking for high-quality companies with good returns on capital, with narrow range of outcomes, good balance sheets, a lot of downside protection," said Kevin Toney, vice president and senior portfolio manager for American Century Investments in an interview with "Closing Bell" on Wednesday.

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"We are classic value managers and so when something outperforms we will trim it back and when something underperforms, we'll add a little bit to it."

A driver for Sysco unloads supplies for a restaurant in Cleveland.
Mark Duncan | AP Photo
A driver for Sysco unloads supplies for a restaurant in Cleveland.

The fund's holdings range from health care to food distribution and trash collection.

Toney likes food distributor Sysco for its stable business model and sees it as benefiting from lower gas prices. "Sysco should benefit from better margins, lower gas prices and lower distribution costs."

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Republic Services, a Phoenix-based company, is another name that appeals to Toney and is viewed as not having much of a down side.

"High return on capital, low volatility and so we think as the economy improves and commercial construction picks up that their volumes should improve and then pricing power should follow."