How does a five-star fund manager play this volatile market? Mark Keeley of Keeley Asset Management does it with health care and energy stocks.
His five-star Keeley Small Cap Value Fund is up an average of 19.66 percent per year over the last five years, and even shows a gain of nearly 3 percent year-to-date.
"We're looking for undervalued stocks, and that takes us across all market caps and industries," he told CNBC. "We're best known for our work in the small-cap space, and we're still finding value in this market."
Recommendations:
Among the names in which he's finding value is Pharmerica.
"Pharmerica was spun off last year from Amerisource Bergen," he said. "It's a pharmaceutical outsourcing company...it's definitely a good place to be, and a good way to participate in the changing demographics as it relates to health care."
(What do Shorts say about Pharmerica? Click to find out.)
He also likes Hill-Rom Holdings, a spin-off from Hillenbrand Industries that makes beds and furniture for hospitals.
"They are definitely a vertically-integrated company, as along as you stayed horizontal," he joked. "We see tremendous opportunity in the hospital-bed business."
Continuing on the "horizontal" theme, Keeley likes Superior Well Services, which specializes in the field of horizontal oil-well drilling.