John Varghese, co-owner and managing partner of VentureLink Group of Funds, primarily buys shares in privately owned alternative energy and technology companies for the VentureLink Brighter Future Series I through V labour-sponsored funds.

"My first pick is an investment in the S&P/TSX Canadian financials subindex," he says, noting the subindex has outperformed in every year following a year of negative returns. The iShares Financials Index Fund (XFN/TSX) tracks the index.

Mr. Varghese also likes DragonWave Inc. (DWI/TSX) a small-cap tech company that he holds in the Brighter Futures Fund, and cheese maker Saputo Inc. (SAP/TSX). The manager says Saputo is undervalued after being sold down 40% in the past year and thinks the shares could reach $26 in the next 12 months.

His bearish call is BCE Inc. (BCE/TSX). He thinks the telecom giant will report disappointing Q4 results and the stock may have gotten ahead of itself.