Q: Right now, you see more value in gold miners versus gold exposure via the GLD exchange-traded fund. Do any come to mind? A: One is Randgold Resources [GOLD], a mid-tier gold producer focused on West Africa. The company is headed by D. Mark Bristow, a geologist who knows African geology and politics. They have developed two major mines in Mali, and have two more exciting development projects in the pipeline. What sets them apart from their peers is their uncanny ability to grow organically and to find gold deposits through exploration and drilling, rather than overpaying for somebody else's discovery. The stock trades at $670 per ounce of reserves, roughly a 25% discount to gold.

Q: Is there a company that fits that theme? A: One is Quanta Services [PWR]. The consensus has it growing earnings next year by 30%, but we think they are going to win some awards for transmission infrastructure work to make that higher than 30%. You are paying a reasonable multiple for that kind of growth. The stock trades at around 17 times the $1.30 analysts expect the company to earn next year. But we think there is great upside. More transmission awards and policy initiatives are expected, and a $10 billion dollar project announced by FERC [the Federal Energy Regulatory Commission] could possibly provide an opportunity for Quanta in the future.

Q: What about an example? A: Noble Energy [NBL], an independent exploration-and-production company, is a top holding in our portfolios. It has assets in the United States, and offshore in the Gulf of Mexico. It also has assets in Israel and Africa. We believe Noble's reserves will grow sharply over the next three to five years. Noble has a clean balance sheet, and continually has a higher return on capital than its peers do. So the company has reserve growth, and production growth over time. We don't have to worry about debt, in case things deteriorate considerably from here.

Q: Let's hear about one more pick. A: Mariner Energy [ME], another E&P company. It is a neglected, misunderstood story. It combines top-quartile production growth with a very cheap valuation. Production growth should be approximately 15% to 30% this year, and we expect it to increase by 10% next year. The stock trades at 1.4 times '09 cash flow and 3.2 times [earnings before interest, taxes, depreciation and amortization], well below its peers. That's based on crude being at $45 a barrel, compared with around $50 recently. The investment opportunity comes from the market's perception of this company as a high-cost, high-decline-rate Gulf of Mexico shelf operator. In reality, the company has a better reserve-life profile than many onshore operators, and it has had good success in its deepwater operations.