"It's a core holding for us," adds Frels, who took over as manager of the fund (MPGFX) in 2004 from iconic stockpicker George Mairs III, whose father had established the asset-management firm in 1931. "We believe the bank is in an excellent position today to expand market share." Over the next three years, Frels contends, Wells common, recently around 20, can get back to the mid-30s. That estimate is based on his belief that the bank's earnings will climb back to $3 a share, and that its stock will trade at a multiple of 11 times to 12 times forward earnings. Wells, which made 75 cents a share last year, currently trades around 15 times this year's expected earnings.

At the moment, Frels' favorite sector is health care, which accounts for about 20% of the fund's assets, and is represented by Medtronic (MDT) and St. Jude Medical (STJ). The money manager says Medtronic could grow its earnings by 11% annually over the long term, earn $2.95 a share this year (versus $2.60 in '08), and trade at nine times forward earnings. Currently priced at 30, Frels believes the stock could hit 60 over three years.

ST. Jude (STJ) is benefiting from an aging population's growing demand for pacemakers, other implantable cardiac devices and heart valves, Frels says. Adds co-manager Henneman, "St. Jude has proven very adept at successfully delivering effective and safe products to market. The company has been particularly strong in cardiac-rhythm management.

As for one of his industrial favorites, Fastenal (FAST), Frels says that its profits could rise by 10% annually, long-term, boosting its shares, recently around 38.

Frels calls another of his industrial picks, 3M (MMM), "a world leader in a lot of niche product areas like dental products, reflective materials, industrial tapes, abrasives and adhesives." He predicts that its earnings could grow at an annual pace of 10% over the next few years -- although profits will slip this year to $4 a share, from $5.17 last year. The stock has been trading in the 50s; his two-year price target is 80.

The $1.4 billion growth fund, holding 44 companies, is packed with Minnesota names like multinational manufacturer 3M (MMM), food giant General Mills (GIS), medical-device makers Medtronic (MDT) and St. Jude Medical (STJ), discount retailer Target (TGT), industrial-filter producer Donaldson (DCI), nuts-and-bolts distributor Fastenal (FAST), paint-sprayer supplier Graco (GGG), and water-cleaning-equipment firm Pentair (PNR). "The Minneapolis-St. Paul area has one of the highest concentrations of large, multinational industrial and financial companies in the U.S.," Frels observes. "Local surveys claim that Minnesota public companies consistently have outperformed the general stock market, year after year, with the exception of the past two years."

The $1.4 billion growth fund, holding 44 companies, is packed with Minnesota names like multinational manufacturer 3M (MMM), food giant General Mills (GIS), medical-device makers Medtronic (MDT) and St. Jude Medical (STJ), discount retailer Target (TGT), industrial-filter producer Donaldson (DCI), nuts-and-bolts distributor Fastenal (FAST), paint-sprayer supplier Graco (GGG), and water-cleaning-equipment firm Pentair (PNR). "The Minneapolis-St. Paul area has one of the highest concentrations of large, multinational industrial and financial companies in the U.S.," Frels observes. "Local surveys claim that Minnesota public companies consistently have outperformed the general stock market, year after year, with the exception of the past two years."

The $1.4 billion growth fund, holding 44 companies, is packed with Minnesota names like multinational manufacturer 3M (MMM), food giant General Mills (GIS), medical-device makers Medtronic (MDT) and St. Jude Medical (STJ), discount retailer Target (TGT), industrial-filter producer Donaldson (DCI), nuts-and-bolts distributor Fastenal (FAST), paint-sprayer supplier Graco (GGG), and water-cleaning-equipment firm Pentair (PNR). "The Minneapolis-St. Paul area has one of the highest concentrations of large, multinational industrial and financial companies in the U.S.," Frels observes. "Local surveys claim that Minnesota public companies consistently have outperformed the general stock market, year after year, with the exception of the past two years."