In his early years as an investor, Chuck Bath, 57, focused on finding undervalued companies, regardless of the industry. But over time the manager of the $1.5 billion Diamond Hill Large Cap Strategy fund (DHLAX) began looking for promising sectors as well as cheap stocks. The strategy has served him well. He has a 10-year annualized return of 10.1%, compared with 8% for the S&P 500. Now he likes insurers, especially the Hartford Financial Services Group (HIG, Fortune 500).
Henry Ellenbogen scouts for small-cap companies and even the occasional not-yet-public startup.
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