Those names include Kohl's, Oracle, ABM Industries and Marsh & McLennan.
"Our fund's at an all-time high … so we must be doing something right with these laggards. That's when you get value."
Read More This fund's secret to beating the Street
Macy's, he noted, missed on same-store sales and revenue, but was up because it was producing free cash flow. Similarly, Kohl's has problems with same store sales and adding new brands, yet it has an 8.5 free cash flow yield.
Eventually, Olstein said, strategic investors will notice the free cash flow yields compare favorably against U.S. Treasurys.
Read MorePros: Beware these big threats to rally
However, while he's a value player, Olstein warned investors to beware of value traps like IBM.
"I don't see IBM making their way out of the current chaos they are in and they don't have the same free cash flow yield," he said. "I'm not sure what business IBM is in anymore."