The seven-year bull market has boosted the prices of almost all assets, making it more difficult to find value stocks, but one top fund manager has some recommendations for investors.

Mark Travis, lead manager of the Intrepid Capital fund, tells Barron’s that discounted equities can be found amid the growth stocks that have led the market higher. His fund has an average annual return of 7.55 percent, better than 94 percent of its peers, according to Morningstar.

Travis tells Barron’s that he’s had trouble finding securities that meet his discount requirement, except for energy and mining stocks.

“Those are atypical investments for us,” says Travis. “But that’s where we’ve gravitated towards because that’s where we’ve been able to find a valuation discount.”

5 High-Quality Stocks at a Discount

Western Union: “This business is almost like a bond in how much cash it generates,” says Travis. “It generates almost $1 billion a year in free cash flow.” Travis says the company, which is trading around $19, could climb into the low 20s. It also pays a 3.3 percent dividend yield.

Oaktree Capital Group: An asset manager with a specialty in distressed debt and alternative assets, Oaktree also has a 20 percent interest in Jeffrey Gundlach’s DoubleLine Capital. Travis says the value of the DoubleLine stake is understated. He says shares, currently at about $48.50, are worth around $65.

Patterson-UTI Energy: Fracking companies have faced a tough operating environment after the crash in oil prices, but demand for Patterson’s rigs has remained strong. Based on the secondary market value of its 240 rigs and backing out the debt, Travis estimates the shares are worth close to $25, compared with a current price of about $14.50.

American Science & Engineering: Travis started buying shares of the $260 million microcap security company this summer. It provides X-ray detection imaging for security and gets a big part of sales from government contracts. Travis says shares, currently trading around $36, are worth more than $50.

Royal Mail Group: The privatized mail system of the U.K. can only be traded in local shares. It owns valuable real estate in London’s central business district that Travis thinks isn’t reflected in the company’s market value, and he expects will be monetized. The stock yields 5 percent. He says the shares are worth 550 pence ($8.43), 25% above their current price, according to Barron's.

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