With short rates now so low, Ferreira has begun to use the cash to buy cheap stocks. When Google 's (GOOG) stock price fell below 350 from a December 2007 high of 724.80, Ferreira increased Quest Opportunity's exposure from less than a quarter of a percent to 2.14%.

With short rates now so low, Ferreira has begun to use the cash to buy cheap stocks. When Google 's (GOOG) stock price fell below 350 from a December 2007 high of 724.80, Ferreira increased Quest Opportunity's exposure from less than a quarter of a percent to 2.14%.

He also made the fund's first commitment to BlackBerry maker Research In Motion and wireless-telecom giant Qualcomm at steep discounts from their highs. Ferreira notes that all three companies are attractive because "they don't have debt, they have significant cash [and] growing end markets, and they are trading at very cheap valuations." At time of purchase, Google was trading at 14 times forward earnings, RIM at 9 and Qualcomm at 11.

He also made the fund's first commitment to BlackBerry maker Research In Motion and wireless-telecom giant Qualcomm at steep discounts from their highs. Ferreira notes that all three companies are attractive because "they don't have debt, they have significant cash [and] growing end markets, and they are trading at very cheap valuations." At time of purchase, Google was trading at 14 times forward earnings, RIM at 9 and Qualcomm at 11.

Ferreira recently raised his holdings to 6.13%. "Management has only been in place for six quarters," Ferreira says, "and it has been able to build up in excess of $4 per share in cash, it has a pristine balance sheet, and it has generated $2 in earnings [from operations] in the first three quarters of this year, up significantly from last year." Take-Two is best known for its hugely popular Grand Theft Auto game. While Take-Two management was criticized for not accepting a recent bid from rival Electronic Arts, "we applaud the decision," Ferreira says. The offer was too conditional to succeed, but would have given EA a chance to "look under the hood" of Take-Two's development projects, he says.