Since Hannah Hsu profiled Delafield (DEFIX, 800-697-3863) one year ago, the fund has returned 16.8 percent, handily outperforming the S&P 500’s 11.8 percent gain. It has also outpaced its benchmark, the Russell Mid Cap Value index.

Contrarians to the core, managers Dennis Delafield and Vincent Sellecchia are special-situation investors who focus primarily on turnaround stories. The pair began to accumulate shares of electronics manufacturer Plexus Corp (NSDQ: PLXS) after the company’s stock came under pressure following a weak first-quarter earnings report.

Plexus Corp designs and builds custom products to order. First-quarter earnings suffered after the company’s new self-serve and dispensing machines, manufactured for Coca-Cola (NYSE: KO), experienced slower-than-anticipated sales.

It proved to be a quintessential Delafield investment. Sellecchia and Delafield seized the opportunity to purchase Plexus shares; they expect earnings to normalize as new manufacturing programs come online.

These bets don’t always pay off, but management is usually swift to unload positions once they realize their investment thesis won’t hold. However, the fund has recorded some notable successes. Delafield generated excellent returns in 2006 and 2007 after predicting a wave of restructuring throughout the chemicals industry.

Sellecchia and Delafield have turned their focus to consumer cyclical names and built a stake in Collective Brands (NYSE: PSS), best known for its Payless ShoeSource chain of footwear stores. The retailer has posted weak sales in recent quarters. But it continues to generate attractive cash flows that Delafield’s management believes will be used to pay down debt and buy back company shares.