Fund Builds Up Health, Trims Energy; UMB Scout Small Cap; Manager Bagby likes medical device makers as well as selected tech.(MUTUAL FUNDS)(MUTUAL FUND PROFILE)

Byline: MURRAY COLEMAN

In early March, David Bagby was busy dumping energy.

The manager at $376 million UMB Scout Small Cap Fund figures he made about a 100% profit on those holdings.

"We're not denying that some energy stocks could keep going up," said Bagby. "But a lot of these names are 25%-50% above their 200-day moving averages. That's a little too extended and reminds us of tech in the late '90s."

Bagby is putting new money into health care. But that doesn't include big pharmas. He prefers medical device makers and lab testing names. UMB Scout Small Cap is also investing more in a few select tech firms.

Designed as a go-anywhere core fund, it's leaning toward growth these days as well.

"We're seeing a rotation from energy and finance to tech and health care," said Bagby, 55. "And growth is outperforming value. As the economy slows, that's going to be more important than market cap size."