"I don't even attempt to time individual stocks because I don't know how someone could do it," he said. "I wouldn't begin to know what the short-term fluctuations of my fund are going to be year to year, and I know all the stocks that are in it."

Faith in Heebner's fund requires faith in his ingenuity.

Faith in micro-cap stocks is another matter. Those smaller companies with market capitalization between $30 million and $300 million are frenetic because they represent unproven firms. Buckling in for the past 10 years produced a wild ride.

"While we do have phenomenal 10-year numbers for our micro-cap fund, I wonder how many investors really got those numbers," said O. Thomas Barry III, senior portfolio manager for Bjurman, Barry Micro-Cap Growth Fund in Los Angeles, with 10-year annualized return of 16 percent. "They tend to get in at the top, sell after a sell-off and dip back in after it runs up again."

Over the past 100 years, annual return of the micro-cap group has been 18.8 percent annually, outpacing the 11.6 percent of large caps, noted Barry, referencing data from the Center for Research in Security Prices at the University of Chicago.

Barry employs five investment screens to find firms with the fastest earnings growth selling for low price-earnings ratios relative to that growth. Big winners included Andersons Inc. (ANDE) in grain elevators and ethanol, Healthcare Services Group Inc. (HCSG) in housekeeping services, and Metal Management Inc. (MM) in scrap metal recycling.

"Micro-caps do well over time but have periods of three to five years when they underperform," said Barry, whose fund declined 1 percent last year. "When investors hear bad news about the economy, they gravitate toward the least risky securities — the large caps — which are less volatile but don't match long-term returns of micro-caps."

Top diversified stock mutual funds in 10-year annualized total return, according to Lipper, are:

• CGM Focus Fund (CGMFX), "no load" (no initial sales charge); $2,500 minimum initial investment; annualized return 25 percent.

• Quaker Strategic Growth Fund "A" (QUAGX), 5.5 percent load; $2,000 minimum; 18 percent.

• Bjurman, Barry Micro-Cap Growth Fund (BMCFX), no-load; $1,000 minimum; 16 percent.

• Meridian Value Fund (MVALX), no-load; $1,000 minimum; 15 percent.

• Security Mid Cap Value Series "A" (SEVAX), 5.75 percent load; $1,000 minimum; 15 percent.

• Royce Heritage Service Fund (RGFAX), no load; $2,000 minimum; 14 percent.

• MTB Small Cap Growth Fund "A" (ARPAX), 5.5 percent load; $500 minimum; 14 percent.

• Needham Growth Fund (NEEGX), no-load; $5,000 minimum; 14 percent.

• Security Mid Cap Value Series "B" (SVSBX), 5 percent deferred load; $100 minimum; 14 percent.

• Royce Opportunity Fund; Investment (RYPNX), no-load; $2,000 minimum; 14 percent.

Funds closed to new investors or requiring high minimum initial investments were excluded. Always monitor the recent annual returns of the funds as well.

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Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, P.O. Box 874702, Tempe, AZ 85287-4702, or by e-mail at andrewinv@aol.com.