Published on 5 Feb 2023 on Insider Monkey via Yahoo Finance
15 Most Undervalued Small-Cap Stocks To Buy According To Hedge Funds
In this article, we will take a look at the 15 most undervalued small-cap stocks to buy according to hedge funds. To see more such companies, go directly to 5 Most Undervalued Small-Cap Stocks To Buy According To Hedge Funds.
Small-cap stocks suffer when financial markets are facing turbulence because investors tend to flee riskier stocks towards safer, large-cap companies. However, it’s an open secret that not all small-cap companies are risky. There are always immense opportunities for investors in the small-cap world. A WSJ article last year pointed to the trend in the investing world where investors were piling into cheap and undervalued small-cap stocks amid the broader market turmoil. While it is hard to predict when the next rotation will kick off, investors say some small-cap stocks have fallen so far that they now look inexpensive, compared with shares of larger companies.
The WSJ report, published in June 2022, quoted Jason Pride, chief investment officer of private wealth at Glenmede, who thinks small caps had "fallen too hard." The analyst at the time had an Overweight rating for small-cap stocks