5 Small-Cap Stock Picks From Fund Manager Beating 90% of Peers

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5 Small-Cap Stock Picks From Fund Manager Beating 90% of Peers
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A small-cap fund manager who's beaten 90% of his peers over the last year shares 5 stocks he's betting on now — and how he weeds out downside risk in a volatile area of the market

Harden said he's bullish on stocks like: MCFT, MBUU, MCB, MBIN, and FC.for big upside potential. But while getting into a company before it scales up can provide larger opportunity, it also carries outsized risk.

But Dave Harden's mission with the SGI Small Cap Core Fund is to identify small-cap names with the least downside risk so that he can capture that upside potential with more stability. Harden says his success has come from using a combination of quantitative and qualitative analysis to identify risks. Seventy percent of that equation is the quantitative side of things — looking at factors like a stock's, its earnings quality, and valuation. Overall there are 20 factors their model looks at, he said.

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