According to research by Verdad, the highest expected returns after a large correction is typically in small cap value - and obviously levered small cap can be explosive. I understand why everyone, including myself, are attracted to strong balance sheets and low leverage in times of crisis, but coming out of the GFC a lot of multibaggers were found in small, levered equities that made it through.
Considering everything is getting soldt indiscriminately, the proverbial baby might be thrown out with the bathwater. Not saying the time is right now, but it would be nice with a list. It seems the biggest risk for many companies atm is liquidity, and that risk is real, but perhaps well stacked debt at low rates isn't such a big issue unless companies have to refi in the current environtment.
Personally, I have a large investment in Berry Global. But that has actually held up quiet well despite high leverage (it was sold down prior to coronavirus scare due to company specific issues).
Ashbury Automotive is interesting in that they have high recurring revenue from service, and it's a high quality business, plus they can terminate an acquisition (and probably will) that otherwise would've take leverage to 4x.
It's down almost 2/3 in a short while, but I'm still not sure one gets compensated for the risk versus say Cambria Automobiles or Vertu Motors that has low to negative net debt.
So, what's your favorite levered value small/mid/large cap? Possibly throw in some cyclicality too for maximum YCK factor.