One way for investors to freshen up their portfolios this spring may be with small cap stocks, said Eric Cinnamond, vice president and portfolio manager at Intrepid Capital Funds.
“In small caps, there are still opportunities,” Cinnamond told CNBC.
“But keep in mind that we’re up 100 percent from the lows in March, so things are getting more difficult and some valuations are starting to get stretched—especially in the more cyclical, lower-quality names.”
Cinnamond said he favors the “steady Eddie-type companies”—companies with good balance sheets, strong free cash flows and a lot of visibility.
“Times like these, we get more defensive...over time, that seems to work for us,” he said.
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No immediate information was available for Cinnamond or his firm.