Osterweis Fund Bets On AT&T, Prudential

The broader stock market hasn't shown much love of late to Prudential Financial Inc., but Osterweis Capital Management's Matthew Berler saw an opportunity. Believing Prudential had been unfairly punished for the travails of American International Group Inc., Mr. Berler added Prudential to the Osterweis midcap blend fund

These moves evince a contrarian touch that guides the Osterweis Fund, which has bested the long-term performance of other funds in the "Mid-Cap Blend,".  But Osterweis, of San Francisco, won't buy stocks "just because they're down," insisted Mr. Berler, adding that the fund continues to look for companies with viable earnings growth -- an increasingly challenging pursuit for all investors in a weakening economy. "We're not contrarian in the respect that we are going to step up and buy financials," Mr. Berler said.

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