
By InsiderMonkey
The most popular small cap stocks among hedge funds tend to generate significant alpha- about 120 basis points per month, per our own analysis. In our August 2012 newsletter, we disclosed which small cap stocks had been the most popular at the end of June and those stocks proceeded to return 14% in the fourth quarter of the year (read more about our hedge fund small cap strategy)- even though by that time the picks were obviously a little out of date. These results are not typical, but on average we