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Fund Manager Names Must-Have Small Caps

New York Stock Exchange workers finish up trading minutes before the closing bell at the Exchange, Tuesday, April 3, 2007 in New York. Stocks surged Tuesday on signs of resilience in the housing market and the U.S. consumer, with falling oil prices giving investors an extra reason to rally. The Dow Jones industrials gained more than 120 points. (AP Photo/Julie Jacobson)
Julie Jacobson
New York Stock Exchange workers finish up trading minutes before the closing bell at the Exchange, Tuesday, April 3, 2007 in New York. Stocks surged Tuesday on signs of resilience in the housing market and the U.S. consumer, with falling oil prices giving investors an extra reason to rally. The Dow Jones industrials gained more than 120 points. (AP Photo/Julie Jacobson)

Small-caps are thriving. Matthew Ziehl, manager of RS Investments' Small Cap Core Equity Fund, appeared on “Morning Call” to share three hidden jewels he says should be in your portfolio.

“Small-caps continue to deliver on earnings and expectations. You have a lot of managers in the large-cap and medium-cap space continuing to reach down into smaller companies for those great individual stock ideas that can deliver sales and earnings growth,” said Ziehl.

Ziehl’s picks:
Trident Microsystems. “They are the market leader in providing imaging processing solutions for high-definition, flat panel televisions,” said Ziehl.

Psychiatric Solutions. Ziehl describes this company as the No. 1 player in acquiring, integrating and driving internal growth of behavioral health centers.

TETRA Technologies. This energy services firm is made up of a few businesses related to well completion and enhancement, but their most important business is the plugging and abandonment aspect of the well-decommissioning business. “They are one of the few companies with the experienced divers and equipment to address the market,” said Ziehl.

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