Ten top performing small-cap fund managers name their picks
Advo David Kelley / RS Investments/ Partners fund Its junk-mail advertising blitzes prove surprisingly effective for retailers.
Coinstar David Kelley / RS Investments/ Partners fund Self-serve coin counters, gumball machines, and kids' rides are cash cows.
Corinthian Colleges David Kelley / RS Investments/ Partners fund A turnaround play, its for-profit schools can surpass 30% return on capital.
MI Developments David Kelley / RS Investments/ Partners fund Two businesses (commercial leasing and horse tracks) offer high growth.
Tuesday Morning David Kelley / RS Investments/ Partners fund Closeout retailer is increasingly popular with upscale moms.
Brady Eric Ende / First Pacific Advisors/ FPA Paramount Makes highly durable ID labels for pipes; new CEO is improving prospects.
Cognex Eric Ende / First Pacific Advisors/ FPA Paramount Seeing big demand overseas for its optical gear, which analyzes factory lines.
Knight Transportation Eric Ende / First Pacific Advisors/ FPA Paramount Small-load trucker features extremely high operating margins.
Polaris Industries Eric Ende / First Pacific Advisors/ FPA Paramount This leading maker of snowmobiles and ATVs posts 40% return on equity.
ScanSource Eric Ende / First Pacific Advisors/ FPA Paramount Sells bar-code scanners and related equipment; logs above-average growth.
Amerigon George Henning / Pacific Advisors/ Small-Cap C Supplies climate-controlled car-seat components; has "no real competition."
Elk George Henning / Pacific Advisors/ Small-Cap C Its roof shingles are in big demand, thanks to hurricane reconstruction.
EZ George Henning / Pacific Advisors/ Small-Cap C Its pawnshops are booming, thanks to Americans' big debt burdens.
Mitcham Industries George Henning / Pacific Advisors/ Small-Cap C Leases seismic equipment to drillers; earnings should rise 50% in 2007.
US Xpress George Henning / Pacific Advisors/ Small-Cap C Tennessee-based trucker is poised to cash in on growth in the Southeast.
Aaron Rents Gerald Van Horn / Stratton Management/ Stratton Small-Cap Value Retail appliance renter shows robust same-store sales.
DRS Technologies Gerald Van Horn / Stratton Management/ Stratton Small-Cap Value Electronics-component maker getting bigger share of defense spending.
Innkeepers USA Trust Gerald Van Horn / Stratton Management/ Stratton Small-Cap Value Largest REIT focused on extended-stay hotels could return 20%.
Tetra Technologies Gerald Van Horn / Stratton Management/ Stratton Small-Cap Value Gulf hurricane damage should propel this oilfield service provider's earnings.
Universal Compression Gerald Van Horn / Stratton Management/ Stratton Small-Cap Value Natural-gas compression services should achieve 20% growth in 2007.
Aleris International John Montgomery / Bridgeway Funds/ Ultra-Small Company This fast-growing maker of rolled aluminum excels at recycling.
Dress Barn John Montgomery / Bridgeway Funds/ Ultra-Small Company Women's apparel retailer shows strong earnings and stock-price momentum.
Encore Wire John Montgomery / Bridgeway Funds/ Ultra-Small Company Wiremaker is still riding the housing boom; sales growth accelerating.
HealthExtras John Montgomery / Bridgeway Funds/ Ultra-Small Company Pharmacy-benefits manager sees strong demand as health costs rise.
PW Eagle John Montgomery / Bridgeway Funds/ Ultra-Small Company PVC pipemaker lost money for years; now pumping profits.
American Home Mortgage John Richardson / Munder Capital/ Munder Microcap Equity Y This mortgage-lending REIT offers a generous yield of 9%.
Essex John Richardson / Munder Capital/ Munder Microcap Equity Y Defense supplier ready to commercialize its cutting-edge military electronics.
Meritage Homes John Richardson / Munder Capital/ Munder Microcap Equity Y Fear of housing slump pushed P/E to six, but earnings growth is 20%.
Old Dominion Freight Line John Richardson / Munder Capital/ Munder Microcap Equity Y This Southeast trucker is expanding nationally; steady earnings growth of 15%.
Tenneco John Richardson / Munder Capital/ Munder Microcap Equity Y Sales of its emission-control products benefiting from stricter air-quality laws.
Flanders Michael Corbett / Perritt Capital Management/ Emerging Opportunities fund Gaining market share in the furnace-filter market.
Landec Michael Corbett / Perritt Capital Management/ Emerging Opportunities fund Developed new polymers with a wide range of uses, from agriculture to retail.
Newpark Resources Michael Corbett / Perritt Capital Management/ Emerging Opportunities fund Oil-services company in the Gulf of Mexico is riding the energy boom.
Rimag Michael Corbett / Perritt Capital Management/ Emerging Opportunities fund New venture with Kodak to offer retail photo kiosks should boost earnings.
Spartan Motors Michael Corbett / Perritt Capital Management/ Emerging Opportunities fund Need for safer fire trucks should raise this chassis maker's earnings 35%.
Ethan Allen Interiors Robert Fetch / Lord Abbett/ Small-Cap Value A Furniture maker and retailer getting sales boost from new product line.
Financial Federal Robert Fetch / Lord Abbett/ Small-Cap Value A Provides financing for industrial equipment; consistent double-digit growth.
Quanex Robert Fetch / Lord Abbett/ Small-Cap Value A Maker of building and automotive products posting double-digit growth.
Ruby Tuesday Robert Fetch / Lord Abbett/ Small-Cap Value A Took a hit after Atkins craze faded; with new menu, traffic is back on upswing.
Werner Enterprises Robert Fetch / Lord Abbett/ Small-Cap Value A Trucker's stock soft because of fuel costs; steady growth should raise P/E.
Cohen & Steers Ron Baron / Baron Funds/ Small-Cap Manager of $22 billion in REIT assets is moving into overseas markets.
Four Seasons Hotels Ron Baron / Baron Funds/ Small-Cap Hotel manager lost money in 2005, but earnings prospects remain strong.
Ralcorp Ron Baron / Baron Funds/ Small-Cap Big player in private-label food business will benefit as industry consolidates.
Shuffle Master Ron Baron / Baron Funds/ Small-Cap Makes automatic card shufflers and proprietary games that casinos love.
WellCare Health Plans Ron Baron / Baron Funds/ Small-Cap Works with Medicare and Medicaid, whose spending should spur growth.
Dollar Thrifty Timothy Todaro / Rice Hall James/ RHJ Small Mid-Cap portfolio Now that rental-car price wars are easing, earnings could jump 40%.
Healthcare Services Group Timothy Todaro / Rice Hall James/ RHJ Small Mid-Cap portfolio Nursing-home-services provider steadily growing earnings by 15% to 20%.
Oakley Timothy Todaro / Rice Hall James/ RHJ Small Mid-Cap portfolio New CEO is repositioning this chic sunglass maker.
Trump Entertainment Timothy Todaro / Rice Hall James/ RHJ Small Mid-Cap portfolio No, Donald, really. New management could double casino operating margins.
Youbet.com Timothy Todaro / Rice Hall James/ RHJ Small Mid-Cap portfolio Online horserace betting, legal in most states, offers high growth potential.
From the June 2006 issue

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.