Investors looking to go against the Wall Street grain should look to companies that are in the midst of change, Beth Lilly, portfolio manager at Gamco Woodland Small-Cap Value Fund, told CNBC Thursday.
We look for companies with some kind of change going on, whether it is a new management team, the deployment of a new financial strategy or the introduction of products into a new market, Lilly said.
That's a dynamic that Wall Street does not appreciate, she said.
"We also look for companies that are excellent capital allocators… We look for strong management teams and we look for companies that have the correct incentive and compensation structures," Lilly told "Squawk Box Asia."
The fund invests in companies that will create value "regardless of what is going on in the overall economy," Lilly said.
Stocks Lilly likes include Constellation Brands , Deluxe Corp. , Lawson Software and ACCO Brands .
"Constellation Brands (is) a wonderful wine company and you're buying the company today for $15 and getting their beer business for free," Lilly said. "It's a company that has been run by the Sands family for many years … and they decided to hire a new CFO and this new CFO has come in and he is helping them get financial discipline. So you're seeing a focus on operating margins, you're seeing a focus on return of invested capital, you're seeing a desire to pay down debt."
"Wine grows with the economy," she added.