Delaware Select Growth
Small and large pick: Large-caps
Van Tran focuses on transformation: Companies whose products or industries are in the midst of major change, which tends to depress stock prices. She aims to predict the long-term winner -- she calls it "time arbitrage." That strategy has helped the Delaware Select Growth Fund (, which Tran began co-managing in 2010, produce 9.1% annual returns over 10 years, vs. 6.2% for the S&P. )
Tran is betting that when the shakeup is complete among companies that handle point-of-sale payments, VeriFone will emerge triumphant. The ongoing shift from cash to plastic and now phones, combined with the entry of new mobile-payment players like Square, PayPal, and Google, has shaken the industry and helped push VeriFone shares down 20% over two years even as the company expects 11% sales growth in 2013. Tran is skeptical that newbies like Square can swing the massive investment needed to scale up. VeriFone, with its software and high market share in point-of-sale terminals -- 60% in the U.S. -- is "not betting their business on any given payment technology," she says. "It's more about working within the existing ecosystem and enabling what might come."
Beware of munis priced at bubble levels. They'll always pop in the end.