Sometimes seeking out the smaller names can pay off big.

So far in 2019, small caps have rallied even more strongly than their large cap contemporaries judging by relevant indices. That could continue, even into a slowdown, according to Eric Marshall, Director of Research and Portfolio Manager at Hodge Capital.

"One reason we think that small caps have done better as the market's bounced off those December lows is because they had been beaten down much worse than the larger and mid cap stocks," Marshall explained looking backward. "So we think it's really the area in the market that is probably already priced in a slow down. Once it appeared that we weren't going to have a recession this year, that those small cap earnings were going to hold up better than what was priced into the market. We saw a substantial improvement."

He added that while small caps overall have seen a bounce, it is still important for investors to be cognizant of stock selection and fundamental analysis.

"We think that you can go out right now and find companies that do have very good prospects for earnings this year that are being mispriced in the market," he said, noting the larger inefficiencies present at smaller names that are oft less intensively followed by analysts.

For some of his specific picks in terms of sectors to watch, specific stocks, and his outlook for M&A action in 2019, check out the interview above.