The most popular small cap stocks (defined as those with market capitalization between $1 billion and $5 billion) among hedge funds outperform the S&P 500 by 18 percentage points per year on average. We think that this is because small cap stocks receive less attention from the financial media and institutional investors such as mutual funds.
Hedge funds are, therefore, more likely to uncover an undervalued or overvalued stock more »
OK, I love dividend stocks, and I’ve spent the last six months exploring all kinds of them, from all different angles.
I’m building my own dividend portfolio, one company at a time, and introducing them to The Motley Fool community. You can see what I had to say about my first two picks, Abbott Labs and PartnerRe Limited. I will also be introducing another company this week.
I more »
Envestnet (NYSE: ENV) is an unusual one. It's a big board stock, with a modest Market Cap (just below $0.5 billion), and typically trades just 70K shares a day. The stock does not appear to be widely followed. However, buying volume has picked up in the last few weeks, going as far as to trade 350K in a single day, along with a break from the $11-12ish range more »
When new dividend aristocrats are named, my first step is, to examine the company to determine if this is the beginning of a longer streak of dividend increases, or if the company represents the next dividend blowup. Looking at the business that SEI Investments (NASDAQ: SEIC) operates in, at first I was worried that this company would show a high payout ratio and challenging business fundamentals. However, I can say I was positively surprised at both the company's free cash flow and potential for growth. What I was not so happy about was the company's relative valuation to their peers.
Despite continued outflows in equity funds, the market has been moving up since October, and rocking in the New Year! If the little guys are getting out, and the market's moving up, then the big guys must be moving in! Assuming that they got big by being smart, we could try to ride their coat tails by going all in behind them until the headlines start talking about equity more »