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Late last week, when stocks began selling off hard, David Kotok, the chairman and chief investment officer of $3 billion-asset Cumberland Advisors, was buying on the dip.

To be precise, he was adding two bank exchange-traded funds—Powershares KBW Bank Portfolio (KBWB) and SPDR S&P 500 Regional Bank (KRE)—to the ETF-based separately managed accounts he oversees.

And on Monday, in the midst of a nerve-wracking 1175-point sell-off in the Dow Jones Industrial Average, Kotok continued to buy, picking up shares of SPDR S&P 500 (SPY). "The time to be a buyer is when it's really ugly," he adds.

On Tuesday, the Dow Jones Industrial Average recovered roughly half of its Monday loss, gaining 567 points, or 2.3%, as investors sought opportunities to pick up cheaper assets.

While Kotok isn't ready to call a bottom to this market selloff, he does see signs that much of the selling pressure that we've seen lately has been exhausted.

Read the full article at Barron's.