
(NASDAQ:HBP) makes and sells building materials and wood products. (NASDAQ:FB), IBEX Limited (NASDAQ:IBEX) is one of the stocks that elite investors have on their radar. (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and Meta Platforms, Inc. Capex guidance was around $35 million.Īmong the hedge funds being tracked by Insider Monkey, New York-based investment firm Schonfeld Strategic Advisors is a leading shareholder in IBEX Limited (NASDAQ:IBEX) with 400,000 shares worth more than $5 million.Īt the end of the fourth quarter of 2021, 3 hedge funds in the database of Insider Monkey held stakes worth $4 million in IBEX Limited (NASDAQ:IBEX), compared to 4 in the preceding quarter worth $13 million. The firm now expects organic revenue growth of 10% to 12% against consensus estimates of 7.3%. IBEX Limited (NASDAQ:IBEX) also raised guidance numbers for the rest of the fiscal year in the earnings report. The board of directors of the firm also recently approved a $20 million share repurchase program. On February 16, the company posted earnings for the second fiscal quarter of 2022, reporting earnings per share of $0.27 and a revenue of around $132 million, up 12% year-on-year. The three are customer service, customer acquisition, and customer experience solutions respectively. Some of these include IBEX Connect, IBEX Digital, and IBEX CX. IBEX Limited (NASDAQ:IBEX) provides tech-enabled lifecycle experience solutions. Best Micro-Cap Stocks to Buy According to Hedge Funds 10. The business fundamentals and analyst ratings of each company are also discussed to provide some additional context.ĭata from around 900 elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each company. Stocks that have a market capitalization between $50 million and $300 million were preferred for the list. These were picked using market capitalizations and growth catalysts. However, the returns of these firms, evidenced by the 51% returns of the Dow Jones Select Micro-Cap Index as of September 2021, is further evidence that these concerns seem out of place given the performance of micro-caps. Many micro-cap stocks in high-growth domains like artificial intelligence, space, and biotech trade on over-the-counter (OTC) markets as well, which limits their access to a broader marketplace in the United States.

The report by Boston Partners reveals that mutual funds and institutional investors, from both active and passive domains, hold roughly 78% of the total holdings in the Russell 2000 but only 40% of the non-Russell 2000 microcap universe.Įven though there are many reasons to invest in micro-cap stocks, the price volatility often associated with smaller companies puts off many investors. (NASDAQ: FB ), but usually do not pay much attention to micro-cap entities. (NASDAQ: AMZN ), Microsoft Corporation (NASDAQ: MSFT ), and Meta Platforms, Inc.


Institutional investors like hedge funds have a bias towards large cap stocks like, Inc.

The amount of institutional capital dedicated to around 8,700 micro-cap stocks tracked by Boston Partners has also shrunk since 2008 even as private equity assets witness a surge in inflows. Both indexes outperformed the returns of the benchmark S&P 500 that was 255% between 1995-2020. These micro-cap stocks do not command much attention on social media either as tech-based offerings reign supreme on the internet.īoston Partners, a capital market company, outlines that in a fifteen-year period between 19, the US Private Equity Index soared by around 716%, compared to the 740% rise in the CRSP Equal Weighted Microcap Index over the same period. Research shows that even though private equity is a solid bet for a healthy investment portfolio, the returns of micro-cap value stocks have outperformed it over the past few years. However, the discussion around value equities is often hijacked by large and popular companies. Value stocks have been in the limelight as interest rates rise and inflation batters the growth market.
