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Pro Analysis

Small-cap value investor Hodges buys industrial play

Crews work on putting concrete in the new median on Castle Rock Parkway west of the I-25 interchange on August 9, 2016 in Castle Rock, Colorado.
Helen H. Richardson | The Denver Post | Getty Images
Crews work on putting concrete in the new median on Castle Rock Parkway west of the I-25 interchange on August 9, 2016 in Castle Rock, Colorado.

Craig Hodges, a small-stock specialist who oversees $2 billion for investors at Hodges Capital Management, bought shares of a concrete maker for his "Squawk Box" model portfolio.

"While we would not be surprised to see a pickup in volatility over the near term, we view the current environment as a critical time for picking individual stocks," Hodges said in reference to the timing of his purchase.

"Based on prevailing fundamentals, we see the best value and growth opportunities in many of the cyclical areas of the market such as financials, consumer discretionary, technology and industrials, which have been held back by uncertainty," he added.

In his own words, the investor reveals his new picks for the competition along with his thoughts on the rest of his holdings.