Talking to the amiable Sorrell Mathes about investments is a lot like drinking New York City tap water – refreshing, noncommercial, and totally sensible. Also, not at all trendy.

The Mathes Company, founded in 1997, manages about $150 million and advises on additional funds held by overseas investors. The firm’s style is long-only, blue chip investing for the long haul; the aim is to beat the S&P 500.

Though some quirks in reporting the firm’s accounts mean mixing apples, oranges, and the occasional kumquat, it appears that Mr. Mathes is mostly successful in beating the S&P. Last year, however, results fell short. His median account was up only 5.85% compared to a gain of 8.99% in the S&P 500. However, excepting accounts heavily invested in bonds and some in which the owner has a highly concentrated stock position held for historical reasons, the equity results of Mathes Company accounts were probably ahead of the averages.

He doesn’t play derivatives; when the market looks overpriced, he raises cash. His problem in 2004 was not that he was negative on the market. His problem was Merck, which tanked after the September 30 announcement of problems with Vioxx, undoing Mr. Mathes’ participation in an anticipated year-end rally.

Mr. Mathes takes his cues from a number of sources, including Thompson ISI and conventional Wall Street research. However, it is his long participation in investment banking, especially in the emerging growth and technology sectors, that has nurtured his ability to read the tea leaves.

After graduating from Cornell University and Columbia Business School, Mr. Mathes worked at a series of investment banks during the PacMan era on Wall Street, when signing on with one firm meant you were quite likely to wake up at another.

Stints at New York Securities, Moseley Hallgarten, Warburg Paribas Becker, Merrill Lynch, and ultimately Prudential Securities built Mr. Mathes’ relationships in the corporate world, especially in the tech sector.

A notable high point of these years was his team’s successful initial offerings for Oracle, Selectron, and Office Depot. Another was learning to assess corporate managements and how to define realistic expectations.

Currently, Mr. Mathes is fully invested; he feels the market is fairly valued. He expects economic and corporate news to remain mostly positive in upcoming quarters, allowing him to raise a little cash as the cycle matures.

Anticipating economic growth of about 3%, Mr. Mathes expects interest rates to continue to bump up slowly on the short end, but to remain stubbornly flat on the long end. This provides an excellent climate for banks, which tend to borrow long and lend short.

Wells Fargo, being a well managed company that is actually still focused on banking, is a great play on this simple concept. Mr. Mathes also likes Northern Trust for its money management and trust activities, and Lehman Brothers.

The unifying themes here are solid, smart managements capable of building a business and a slightly contrarian view of the financial sector. Wall Street views rising rates as anathema to financials. Au contraire, according to Mr. Mathes, who enjoys leaning against the wind and expects corporate liquidity to keep a lid on rates.

Other investments include an over-weighted position in heavy equipment producers like Caterpillar Tractor, Ingersoll Rand, and Deere & Company. The Street is currently downgrading these “early cycle” stocks, but Mr. Mathes thinks they are a great (and conservative) way to participate in the growth of developing countries like China and India.

He also has sizeable positions in the oil sector. Although stocks like BP and Schlumberger have done well over the past year, and though he has taken some profits, Mr. Mathes expects worldwide demand growth to boost long-term performance in this sector.

What does Mr. Mathes worry about? An unforeseen cool down of the U.S. economy, worsening developments in the Middle East, an unexpected jump in interest rates.

To stay out of trouble, he focuses on strong, dominant companies, invests primarily in the U.S. so as not to be rocked by political upheaval overseas, and tends to look at the big picture.

Like many good investors, he makes it sound simple.

Ms. Peek was formerly a managing director of Wertheim Schroeder, now part of Citigroup.