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Power Play: Bet on small-caps and mid-caps

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Stocks are rallying on Wednesday, with the Dow, Nasdaq and S&P 500 up more than one percent. With two straight days of gains, the market has recovered about half of the Brexit-related losses.

Edge Asset Management President Jill Cuniff tells CNBC's "Power Lunch" she expects markets to continue to be volatile, with winners and losers.

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"Active management is critical to identify companies that can maneuver through uncertain periods. It's important to focus on companies with strong fundamentals," Cuniff said.

She is finding opportunities in small and mid-cap stocks that pay and grow dividends. One company she likes now is specialty insurer AmTrust Financial Services, which has a 2.5 percent dividend yield. "AmTrust relies heavily on technology to assess risks and is highly selective in its underwriting," Cuniff said.

AmTrust Financial Services is higher during trading, but is down 21 percent year-to-date.