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Do you consider yourself a value investor? If so, you may be interested in a screen we ran for a closer look at stocks that could be trading below their fair value.

We began by screening for stocks that appear to be undervalued relative to earnings growth, with PEG below 1, and relative to free cash flow, with P/FCF below 15.

We then screened for those with bullish sentiment from institutional investors, with significant net institutional purchases over the last quarter, representing at least 5% of share float. This indicates that institutional investors such as hedge fund managers and mutual fund managers expect these names to outperform.

For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.

Do you think hedge funds are calling it right on these names? Use this list as a starting point for your own analysis.

1. American International Group, Inc. (NYSE:AIG): The company operates property and casualty insurance networks worldwide and conducts activities in the U.S. life insurance and retirement services industry. Market cap at $51.63B, most recent closing price at $35.3.

Net institutional purchases in the current quarter at 498.9M shares, which represents about 40.23% of the company's float of 1.24B shares. PEG at 0.14, Price/Free Cash Flow at 12.79. As of September 29th, 2012, the top 2 holders of the stock are Farilhome Capital Management and The Vanguard Group.

2. Peabody Energy Corp. (NYSE:BTU): Engages in the exploration, mining and production of coal. Market cap at $6.97B, most recent closing price at $26.61.

Net institutional purchases in the current quarter at 23.2M shares, which represents about 8.68% of the company's float of 267.26M shares. PEG at 0.60, Price/Free Cash Flow at 11.58. As of September 30th, 2012, the top 2 holders of the stock are JP Morgan Chase, and The Vanguard Group.

3. magicJack VocalTec Ltd. (NASDAQ:CALL): Market cap at $310.46M, most recent closing price at $18.20.

Net institutional purchases in the current quarter at 1.1M shares, which represents about 13.45% of the company's float of 8.18M shares. PEG at 0.87, Price/Free Cash Flow at 6.14. As of September 30th, 2012, the top 2 holders of the stock are Susquehanna International, and Thompson, Siegel, & Walmsley.

4. Calumet Specialty Products Partners LP (NASDAQ:CLMT): Produces and sells specialty hydrocarbon products in North America. Market cap at $1.71B, most recent closing price at $30.31.

Net institutional purchases in the current quarter at 2.6M shares, which represents about 6.87% of the company's float of 37.87M shares. PEG at 0.55, Price/Free Cash Flow at 9.84. As of September, 29th, 2012, the top 2 holders of the stock are Morgan Stanley and Citigroup.

5. Cooper Tire & Rubber Co. (NYSE:CTB): Together with its subsidiaries, manufactures and markets replacement tires in North America and internationally. Market cap at $1.56B, most recent closing price at $25.36.

Net institutional purchases in the current quarter at 3.4M shares, which represents about 5.81% of the company's float of 58.52M shares. PEG at 0.69, Price/Free Cash Flow at 5.54. As of September 29th, 2012, the top 2 holders of the stock are The Vanguard group and National Rural Electric Cooperative.

6. Select Medical Holdings Corporation (NYSE:SEM): Select Medical Holdings Corporation, through its subsidiary, Select Medical Corporation, operates specialty hospitals and outpatient rehabilitation clinics in the United States. Market cap at $1.33B, most recent closing price at $9.43.

Net institutional purchases in the current quarter at 3.9M shares, which represents about 11.14% of the company's float of 35.02M shares. PEG at 0.84, Price/Free Cash Flow at 6.37. As of September 30th, 2012, the top 2 holders of the stock are T. Rowe Price and California State Teachers Retirement.

7. USANA Health Sciences Inc. (NYSE:USNA): Develops, manufactures, distributes and sells nutritional and personal care products worldwide. Market cap at $450.65M, most recent closing price at $31.23.

Net institutional purchases in the current quarter at 1.4M shares, which represents about 21.94% of the company's float of 6.38M shares. PEG at 0.51, Price/Free Cash Flow at 6.66. The top 2 holders of the stock are FMR, LLC, and LSV Asset Management.

*Institutional data sourced from Fidelity.

Source: 7 Undervalued Stocks Being Bought Aggressively By Hedge Funds