US Marijuana Party

Sunday, March 12, 2006

Counting on for-profit schools and jails

Philadelphia Inquirer, PA
By Danielle Kost
Bloomberg News

For managers of the RS Partners Fund, the second-best-performing U.S. small-company value mutual fund since 2001, only two things are certain this year: jail and school.

Andrew Pilara, 64, who oversees the $2.3 billion fund, is bullish on Corrections Corp. of America, the country's largest operator of jails and prisons, and Corinthian Colleges Inc., which runs 97 post-secondary schools across the United States.

While most companies will post smaller earnings gains this year as consumer spending weakens, companies such as Corrections Corp. and Corinthian Colleges will keep growing, said Pilara, who comanages the fund with Joe Wolf and David Kelley. Demand for their services is not dependent on the economy, he said.


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