Shares of U.S. Concrete (USCR) - Get Report are up 22% thus far in 2016 and last year's federal highway bill will keep the company's shares on the fast track, said Eric Marshall, portfolio manager for the Hodges Small Cap Fund (HDPSX) - Get Report .
"It's hard to get excited about concrete but having that visibility over the next five years for funding for states and local government means [this company] can really start repairing bridges and roads and highways," said Marshall, adding the company has very good pricing power and high barriers to entry.
The Hodges Small Cap Fund is down 4.4% so far in 2016, according to Morningstar. The $1.4 billion fund has returned an average of 9% annually over the past five years, outpacing 83% of its Morningstar category peers.
Marshall is also bullish on Cinemark Holdings (CNK) - Get Report , which has seen its stock rise over 7% year to date. He said the movie theater chain is not only benefiting from blockbuster films like Captain America: Civil War, but from its international exposure as well.
"A quarter of their business is in Latin America and that's really an emerging market where people are starting to go to the movies more," said Marshall. "The movie industry is fairly mature in terms of tickets sold in the U.S. but down there it's a growth industry."
ClubCorp Holdings (MYCC) has seen its stock drop almost 40% year to date because the golf club operator's clubs are primarily in Texas where the drop in oil is weighing on high end spending. Nevertheless, Marshall said the "reality is not as bad as the perception" and club members continue to pay their dues.
"The business has proven to be pretty recession resistant, we saw that in the last downturn," said Marshall. "While rounds of golf may be down, rounds of golf at country clubs is pretty stable."
"We like the management team. They are in a cyclical business but they have no debt," said Marshall.