Lisa Myers helps oversee more than $30 billion at Franklin Templeton; her Income Fund has returned 7.1% a year since its 2005 inception, well above the S&P's 1.1%.
Myers looks for steady, long-term investments -- like Microsoft, which she thinks will outperform over the next decade. Given the stock's trailing P/E of 14 (vs. 22 for other big tech stocks), "it really looks like the market assumes it's going without growth," she says. But Myers expects Microsoft's server sales -- about 24% of revenue -- and software sales to climb as corporate spending rebounds.
She also thinks its videogame business will benefit from innovations, including Natal, a motion sensor, and Xbox Live. Another source of growth: emerging markets. PC penetration in China is just 12%, Myers estimates; she dubs it a "huge untapped opportunity" for software provider Microsoft.