Pick: Smart Balance (SMBL)
Mario Gabelli was one of the first big names in mutual funds. Today the firm he founded, GAMCO Investors, manages $37 billion, and he runs 16 funds, including Gabelli Small Cap Growth (GABSX) and GAMCO Westwood Mighty Mites (WEMMX), both of which have returned yearly averages of more than 8% for the past decade (vs. 6.2% for the small blend category). His pick, Smart Balance, held in both of those funds, serves the lucrative health food market. Under Stephen Hughes, who nurtured hit brands like Celestial Seasonings, Smart Balance is expanding via acquisitions, from heart-healthy buttery spreads to increasingly popular gluten-free snacks and baked goods. The stock trades for a lofty 45 times its most recent 12-month earnings. But Gabelli sees accelerating profit growth ahead as Smart Balance incorporates its latest acquisition and more people are diagnosed with celiac disease or gluten intolerance. He notes: "Health and wellness has been a theme of ours for the past 10 years and will continue to be a theme for quite some time."
--A.F.
Retirement is different today. So are retirees. Here are 20 destinations to suit both.
