Craig Hodges has some big ideas about small caps, and one of them even involves a company in the financial space.
He's co-portfolio manager of the Hodges Fund, which is up an average of 19.3 percent per year over the last five years.
His first pick is Bristow Group, which operates helicopters that ferry oil-rig crews to and from offshore drilling platforms.
"The reason we like it so much is the tremendous high barriers of entry," he said. "Most of these large helicopters go to the military...so if you wanted to try to start a helicopter company to compete with Bristow, you flat couldn't do it, because you couldn't get the helicopters."
Bristow also recently acquired a pilot-training company, an effective hedge against a pilot shortage.
Hodges also likes US Global Investors.
"In the financial segment, the asset managers we think are a tremendous buy," he said. "US Global's a small company out of San Antonio...we think they're going to be able to grow their assets fairly significantly here."
- Learn more: Watch the entire interview (2 mins, 13 secs)
Hodges owns Bristow Group and US Global Investors through his fund.