Bullish Catholic values.

BLOOMFIELD HILLS, Mich. -- One mutual fund in particular has been a star in Wall Street's latest upswing: the Ave Maria Catholic Values fund. For the first three quarters of 2003, the fund rose 21.7 percent, outperforming the S&P 500-stock index by 6.9 percent.

"One of our largest shareholders thinks it's because of divine intervention," fund manager George Schwartz told Business Week in October." I think it's the good management skills at our firm, our hardworking analysts ... and some good luck."

Ave Maria's assets jumped from $62 million at the end of 2002 to $135 million as of Sept. 30, 2003. With 1,500 investors, the staunchly conservative Ave Maria is now the largest of several Catholic-oriented funds.

Ave Maria screens out companies involved in the abortion industry--including those that donate to Planned Parenthood--contraception production, and pornography, as well as companies that offer domestic-partner benefits to employees. It does, however, invest in Exxon Mobil, which has been roundly criticized for its spotty environmental record-Exxon "doesn't bother any of the screens," says Schwartz--and defense companies like General Dynamics, a producer of tanks and nuclear subs. "The concept of having a defense or a military is not contrary to Catholic teaching," he points out.