Steven Romick's five-star fund invests in all kinds of markets. The portfolio manager of First Pacific Advisors' FPA Crescent fund -- up an average of 12.85 percent per year over the last five years -- says he'd rather look at securities rated BBB than AAA.
"We invest across a company's capital structure," he told CNBC. "We'll buy common stocks, preferred stocks, convertible bonds, subordinated debt, bank debt, anything where we think we can get an equity rate of return."
Romick's first stock pick is Conoco Phillips.
"It's a great company with a lot of upside opportunity, we believe, and it's not priced as if oil's 90 [dollars per barrel], let alone 80, 70 or even 65," he said. "We think this company's not dependent on oil remaining at these levels...to get the return."
He also likes Covidien, a Tyco spin-off that makes and markets medical equipment.