Shares of Delta Apparel (DLA)  are up 48% thus far in 2016 and the apparel maker has the right styles to keep the stock moving ahead, said Steve Scruggs, portfolio manager for the Queens Road Small Value Fund (QRSVX) .
 
"They have a brand called Salt Life that they have owned and marketed for several years, but they are really starting to monetize it," said Scruggs. "They are doing a lot of things on social media to get that brand out there."
 
Aside from Salt Life, Scruggs said that the "underlying fundamentals of the company" are strong as well, as evidenced by its better-than-expected earnings report earlier this week.
 
The Queens Road Small Value Fund is up 2.8% thus far in 2016, according to Morningstar. The $137 million fund has returned an average of 7.8% annually over the past three years, outpacing 93% of its Morningstar category peers.
 
Scruggs is also bullish on UGI (UGI) , which has seen its stock soar 25% year-to-date. He said the natural gas distributor is both a growth play and a utility play due to its 2.2% dividend yield.
 
"They have some mid-stream infrastructure assets that they have been adding to," said Scruggs. "And there is a big problem in the Marcellus Shale area getting that really cheap natural gas to more populated areas and they converted on a couple projects last year that will help that."
 
Cato  (CATO) , down 5% so far in 2016, is a Charlotte, N.C.-based specialty retailer operating almost 1,400 stores in 32 states, mostly in strip malls. Scruggs is bullish on the name despite the tenuous environment in the retail sector and especially in the nation's malls.
 
"They offer stylish clothes at a price point that is comparable to a Wal-Mart (WMT) ," said Scruggs.
 
Finally, Scruggs is a fan of Hilltop Holdings (HTH) , down 1% year-to-date, saying the Dallas, Texas-based lender is not as correlated to the price of oil as many investors may believe.
 
"They claim that about 4% of the balance sheet has oil exposure and it is conservatively underwritten," said Scruggs.

More from Investing

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank

Facebook Jumps on $9 Billion Buyback Plan, Bullish Note From Deutsche Bank

Apple Stock Overcomes Trade Troubles to Post Gain on Monday

Apple Stock Overcomes Trade Troubles to Post Gain on Monday

Today's Action Has the Potential to Be a Turning Point

Today's Action Has the Potential to Be a Turning Point

Is Broadcom an Easy Buy After 51% Dividend Boost?

Is Broadcom an Easy Buy After 51% Dividend Boost?

Analysts Downplay Qualcomm's Short-Term Legal Victory Over Apple

Analysts Downplay Qualcomm's Short-Term Legal Victory Over Apple