Where does a five-star fund manager look for opportunity in a down market? Jerry Jordan of the Jordan Opportunity Fund focuses on energy.
"We look for big secular trends," he told CNBC. "Energy has been a very big theme for us for a very long time. When we look at the structural underpinnings of the supply and demand for crude oil, it's still just as bad as it's been, and getting worse."
Lately, it's been the price of crude oil that's been getting worse, but Jordan is looking past the current downtrend.
"We think the global economy will be better next year than it is this year, and as that happens, demand for oil has to come back, and supply has been atrocious," he said. "I think oil will be $100 next year, maybe by the first half of next year."
So where does that direct his investment dollars?
"One of our favorite stocks, and one of our largest holdings, is Diamond Offshore," he said. "It's one of the largest offshore deep-water drillers, no debt on the balance sheet, $7.00 dividend for an $80 stock."
Also on his list of energy stocks is coal producer Peabody Energy.