10 Small Cap Stocks Hedge Funds Are Loving Right Now

Personal finance website NerdWallet has compiled a list that can help you invest like a top hedge fund manager.

Then again, flaccid returns have led some to conclude that investing in hedge funds is an “expensive way to trail the S&P 500,” so enter at your own peril.

NerdWallet’s list shows which small-cap stocks are seeing the biggest inflows from the 10 largest and most well-known hedge funds. Most of the picks are in financial services, technology, and consumer products.

hedge fund small cap stocks

“If the trend continues, these stocks could see significant upside, given their small size” of under $2 billion in market capitalisation, NerdWallet’s Maxine Rieman writes. “There is also a greater chance that small-cap stocks could be incorrectly priced, as they are less covered and traded than large-cap stocks.”

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