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After the bell on Friday, Bacterin International (NYSEMKT:BONE), Harvard Bioscience (NASDAQ:HBIO), Glu Mobile (NASDAQ:GLUU), interCLICK (ICLK), and TowerStream (NASDAQ:TWER) hit the Russell 2000 lottery.

Every year, Russell Investments rebalances its Russell 2000 index by adding worthy companies and deleting ones it no longer deems worthy. This is an annual event that represents a juicy opportunity for investors who get in early on stocks that get added to the index. When the changes are made, ETFs and other mutual funds are forced to buy the new additions, usually driving the shares significantly higher.

A few weeks ago I published a list of 5 Likely Additions to the Russell 2000BONE, HBIO, GLUU, ICLK, and TWER.

After the market closed on Friday, Russell Investments released the list of preliminary 2011 Russell Index additions and deletions. The list revealed that ALL of my picks are slated to be added.

Assuming no alterations, Russell ETFs and mutual funds now have no choice. They have to buy these stocks in large quantities to represent their funds. Being added to the Russell 2000 will also raise the visibility of these stocks to the broader investment community.

As expected, getting in front of the big news has paid off so far:

Long

Ticker

Initial Price

Current Price

Return

Russell 2000

Delta

Bacterin International

BONE

3.40

3.71

9.1%

-7.6%

16.7%

Harvard Bioscience

HBIO

5.48

5.32

-2.9%

-7.6%

4.7%

Glu Mobile

GLUU

3.82

4.70

23.0%

-7.6%

30.6%

interCLICK

ICLK

7.02

6.85

-2.4%

-7.6%

5.2%

TowerStream

TWER

4.20

5.30

26.2%

-7.6%

33.8%

Short

P.A.M. Transportation

PTSI

11.01

9.45

14.2%

-7.6%

21.8%

Average Pick

up 11.2%

Russell 2000

down 7.6%

Average Delta

18.8% in less than 6-weeks

From this chart, you can see the 5 picks. You can also see one short idea I had offered -- P.A.M. Transportation (NASDAQ:PTSI) – under the assumption that it would be deleted from the Russell. Friday’s announcement confirmed that assumption.

The performance of these stocks has been outstanding. The average return has been 11.2% in less than 6-weeks, despite the market’s sharp decline. Four out of six have been profitable and ALL SIX have outperformed the market (by an average of 18.8%).

…and there are still two weeks to go.

When Russell makes it official (after the bell on June 24th), these stocks will experience a flood of institutional volume. This is not a prediction – it’s a predictable and proven fact, driven by the need for funds to include these stocks in their portfolio. As such, it should be an interesting couple of weeks for these stocks.

As a final note, I will be providing special updates exclusively to those who follow my instablog, free on Seeking Alpha, so sign up and stay tuned for more!

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in BONE, HBIO, GLUU, ICLK, TWER, PTSI over the next 72 hours.

Source: Russell Announces 2011 Changes: New Additions Should Benefit