The S & P 500 energy sector jumped more than 3% Monday to be the best performing grouping by far, driven by rising oil prices as investors assessed the impact from the deadly Israel-Hamas conflict. "It highlights the value in a portfolio of energy exposure," Nygren said on CNBC's " Squawk on the Street. " "We've kind of forgotten that energy oftentimes moves the opposite direction of almost everything else in the portfolio.
The Select Fund, with more than $5 billion in assets, is up almost 23% this year ranking in the top 1% percentile in its category, according to Morningstar. The fund has also racked up a 11.6% average annual return in the past 15 years. The investor said energy stocks are relatively inexpensive and they are well positioned for more gains ahead as oil prices are expected to stay elevated. "They're cheap stocks on their own merits, single digit P/E ratios," Nygren said.