Small-cap stocks are where investors should be now, Lamar Villere said Tuesday.
"For one thing we think that's where you can actually find some growth and find some companies that aren't as well followed, so you can get in at attractive valuations," he told CNBC's "Power Lunch."
Villere, co-manager of the Morningstar four-star rated Villere Balanced Fund, said that small caps are a little more defended from outside pressures like slowing global growth and a rate hike by the Federal Reserve.
Because small caps have lagged this year, Villere said that there could be opportunities to get in at good prices. "If you can find the right small caps, you're in good shape," he added.
Wasif Latif, USAA Investments head of global multi-assets, said that U.S. equities are widely overvalued.
"When you look across the spectrum, U.S. equities are generally overvalued. European equities are undervalued on a relative basis, so we like Europe more than the U.S.," he said in the same interview.