Which small caps still have upside: Fund manager

Calming international worries stemming from Greece may have helped to close the 4 percent lead the Russell 2000 had on the , but there is still room to run for small-cap leaders according to one five-star rated fund manager.

"As we get into earnings season, we think earnings will hold up relatively well," Eric Marshall, manager of the Hodges Small Cap fund, told CNBC's "Power Lunch."

Citing an improved view on the state of the U.S. consumer, Marshall highlighted consumer leaning stocks like American Eagle and Group 1 Automotive. The small-cap focused fund also includes Eagle Materials, hoping to capitalize on a rebound in housing after the cement and wall board manufacturer saw shares slump by about 30 percent.

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Feeling little international impact from worries abroad, home building companies and even some picks in the financial space could be worth adding to portfolios, according to the fund manager.

"You have to look at it on a case-by-case basis, but you do have less exposure to international markets," Marshall said.

Beyond the trend of a strengthening consumer, Marshall added that small caps stand to benefit from continued M&A activity "that will help buoy their multiples."