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Finding Upside in a Down Market

When stock prices tumble, some investors run for cover. Others, like four-star fund managers Jason Votruba and Jeff Auxier, find buying opportunities in beaten-down stocks.

Votruba's UMB Scout Small Cap Fund is up an average of 15.1 percent per year over the last five years; Auxier's Auxier Focus Fund is up an average of 11.3 percent per year in the same time frame.

Votruba likes Hornbeck Offshore Services, which provides marine transportation services, primarily in the Gulf of Mexico, and recently added 16 new vessels to their fleet.

"Right now, there's such a demand for oil, and for the...services they provide, that they're very well positioned," he told CNBC.

Auxier finds shares of firms that provide consumer necessities especially attractive in the current market environment, saying those companies have been raising their prices ahead of the commodity curve.

"That bodes well for...players like Unilever in the packaged-goods area and Kroger in the supermarket area," he said.

Disclosure: Votruba owns Hornbeck through his fund; and Auxier owns both Unilever and Kroger through his fund.

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