This fund's team of six sector specialists takes a fairly standard value approach in seeking "good companies facing transitory headwinds." What's unusual, says co-manager Andrew Baumbusch, is that the six-year-old fund, which has turned in 9.1% annualized returns, is "benchmark agnostic" and therefore willing to let the firm's bottom-up approach take them outside traditional value sectors like utilities and financial services. For example, they currently like TriQuint Semiconductor, which supplies components for mobile phones and other electronics and, says Baumbusch, is particularly well positioned to benefit from "device proliferation." The fund also recently invested in Wabtec, which provides equipment and services to the rail industry, when the stock's price/earnings ratio fell to 13 from its average in the high teens. Baumbusch says Wabtec stands to benefit not only as railcars are brought back online post-recession, but also because of something called "positive train control," a recent government mandate that all trains be fitted for remote emergency control by 2015.
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