
By InsiderMonkey
Small-cap and mid-cap stocks are the source of much of a hedge fund’s alpha, as these stocks are less covered by the media and other large investors and therefore are more likely to be inefficiently priced. As a result a hedge fund’s research team is more likely to uncover value when evaluating companies with market caps under $5 billion, and so it’s not surprising that on average stocks in this valuation range that hedge funds buy tend to perform particularly well. We’ve estimated that the most popular