One company rode the tech bubble of the 1990s; the other is part of the ill-starred fraternity of bond insurers. What do they have in common? Matthew Kaufler of Touchstone Value Opportunities thinks investors ought to give them a look.
His five-star fund is up an average of 13.8 percent per year over the last five years.
Kaufler's first pick is tech-bubble survivor Triquint Semiconductor, which he sees in a "sweet spot" thanks to two key trends.
"The evolution of second-generation to third-generation cellular networks and the evolution of wireless area networks to the 802.11N standard...necessitate multiple power amplifiers to be used in these devices," Kaufler told CNBC. "That shifts the demand curve outward for the suppliers of these semiconductors."
He also likes Assured Guaranty, which he refers to as a "last-man-standing play."
"You have Ambac and MBIA, which have lost their AAA ratings," he said. "Assured Guaranty has its AAA rating, so in the future, as deals get done...(it) now is going to have a lot more market share going forward."
Kaufler also offers a bonus selection for CNBC.com: Lorillard.
He says the cigarette-making spin-off from Loews is an excellent acquisition candidate, has a great track record at generating free cash flow, and provides a place to hide from the market's volaitility
Kaufler owns Triquint Semiconductor and Assured Guaranty through his fund.