For the most part, stock valuations are anchored in the expectations of earnings and cash flows. William S. Chester and his team at the Westcore Select Fund screen for companies that have sustainable earnings in the mid cap spectrum and are likely to revise their earnings higher.

Consistent earnings are undoubtedly a long-term driver for stocks. Alan Breed and his associates at Edgewood Growth Retail Fund devote their investment skills and resources in selecting companies with a track record of earnings growth and balance sheets healthy enough to withstand business cycles.

Generally, small companies with long-term growth prospects do not tend to be well followed. This under-following creates a valuation gap that Albert Nicholas likes to leverage to his advantage. Companies with higher long-term average growth that trade at a discount and have a stable dividend track record make the list of portolio holdings at Nicholas Equity Income Fund.

As interest rates hover near historic lows, meeting the objective of earning higher returns without compromising the safety of capital has become a daunting challenge. Once investors step outside of the U.S. treasuries there seems to be only one place where they can turn to get extra yield and still retain the guarantee of the U.S. government. Michael Cheah, portfolio manager of the SunAmerica GNMA Fund, explains how Ginnie Mae backed mortgage bonds come into play.

Small cap investing requires specialized sector knowledge and strict discipline to contain the market volatility. Dennis Alff and his team at the helm of the Natixis Vaughan Nelson Value Opportunity Fund seek absolute returns in small- to mid-cap companies that are trading at a discount to their intrinsic value, paying stable dividends, or earning a positive economic margin.