Oportunities

But we do still see opportunities in energy services, health care, and in the distressed and fixed income credit space.

Can you give us an oil services name you like?

One company would be Ensco International (ESV). It's one of the larger offshore jackup rig companies and it has a deep water presence. We like oil-related stocks generally because oil protects against inflation and weakness in the U.S. dollar. And the supply-demand profile is good, for oil service companies.

Supplies are decreasing as demand is increasing, which means that oil companies will have to generate new finds or pull more oil from existing fields. They will need more rigs and that bodes well for a stock like Ensco. The company has good managers who are reasonable allocators of capital. We own other companies in the space, but this is one of our bigger positions.

And who do you like in health care?

Right now we are looking at names in the managed health space, and one that we like is WellPoint (WLP, Fortune 500). There is of course the risk that the government will take away business from those companies and just do it all themselves. But we don't think that is a likely outcome. The stocks have been discounted tremendously on that risk