A small-cap portfolio manager says these stocks will thrive even in a slow growth environment

Needham’s portfolio manager Chris Retzler believes the economy will continue to slow regardless of the timing of rate cuts, but some stocks could still thrive in the sluggish environment. Retzler, manager of Needham Small Cap Growth Fund, said the effects of any rate reductions won’t be felt for a while. “The economy still needs to slow, and will continue to slow, and whatever interest rate cuts come in, it’s going to take a while for that to filter through,” he said on CNBC’s ” Squawk Box ” Wednesday. The markets are widely expecting the Federal Reserve to cut its benchmark borrowing rate by at least a quarter percentage point when it meets Sept. 17-18. “If we do 50 [basis points], it’s probably the Fed is looking at a much more serious, dire situation that’s out there,” Retzler said. Still, the manager is bullish on a few names that are more insulated from the macro uncertainty. Firstly, he highlighted semiconductor company Marvell Technology . Retzler said Marvel could potentially be a good acquire of Intel’s Altera programmable chip unit. Reuters reported Intel CEO Pat Gelsinger is poised to pitch the board on some plans to shed assets and cut costs. The manager is also bullish on the long-term outlook for chip stocks, but he cautioned investors on the volatile nature of these names. “Long term, we do like semiconductors. They go into just about everything,” he said. “I think you cautiously watch, do your due diligence on those names. And see where the right entry point is. You don’t want to buy something too early.” The second pick from Retzler is water metering firm Badger Meter in Wisconsin. He said it’s a utility play that bets on an update cycle every few years. “All of your residential have to meter, and those meters run out over time, and it’s moving more to a digital age, as opposed to the old standard copper,” Retzler said.