Shares of SK Telecom (SKM) are flat thus far in 2016, far underperforming U.S. players like AT&T (T) and Verizon (VZ) . Nevertheless, the South Korean wireless operator is preferable because it is far cheaper, with a similarly juicy yield of almost 5%, said Josh Strauss, portfolio manager for the Appleseed Fund (APPLX) .
"It's unbelievably cheap as compared to AT&T or Verizon on a price-to-book and price-to-earnings basis," said Strauss. "They have a lot of underlying assets, including owning about 20% of one of the world's leading semiconductor players."
The Appleseed Fund is up 6.8% thus far in 2016, according to fund-tracker Morningstar. The $190 million fund has returned an average of 3.2% annually over the past five years, placing it in the 52nd percentile of funds in Morningstar's world allocation category.
Strauss is also bullish on United Natural Foods (UNFI) , which is down 11% year to date. The organic foods distributor will recover from losing its deal with Albertsons last summer, he said.
"We think that as operational leverage comes on you are looking at earnings growth in the 10% to 20% range in the next couple of years and it's a cheap stock," said Strauss.
Shares of shoe-seller DSW (DSW) have lost over a third of their value in the past 12 months. However, Strauss is confident that the company is turning things around. And he says he is not the only one, based on the insider buying at DSW.
"The management team has a lot of belief in what they are doing and the founders and board of directors -- the Schottenstein family bought a million shares at open market prices last August and they did it again in December," said Strauss.
Finally, Strauss is a fan of Oaktree Capital (OAK) , which is down almost 5% thus far in 2016 and pays a 5% dividend yield. He said the volatility in the market should not scare investors away from Oaktree, which specializes in distressed debt, because it will give the firm a chance to profit from the dislocation in the market.