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“Smart Money” investors such as hedge fund managers and mutual fund managers report the companies they buy on a regular basis, and this is helpful information to other investors looking for a starting point for their own analysis.

With that idea in mind, we ran a screen on micro-cap stocks with market caps just above $50 million for those with the highest net institutional buying over the current quarter.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month.

(Click chart for more detail)

Hedge funds clearly stand behind these names – do you? Use this list as a starting point for your own analysis.

List sorted by net institutional purchases as a percent of share float.

1. BG Medicine, Inc. (BGMD): Engages in the discovery, development, and commercialization of diagnostic tests based on biomarkers in the United States. Market cap of $71.04M. Net institutional shares purchased over the current quarter at 1.9M, which is 21.59% of the company's 8.80M share float. It's been a rough couple of days for the stock, losing 12.74% over the last week.

2. MTR Gaming Group, Inc. (MNTG): Engages in racing, gaming, and entertainment businesses in the United States. Market cap of $54.45M. Net institutional shares purchased over the current quarter at 2.3M, which is 20.99% of the company's 10.96M share float. The stock has had a couple of great days, gaining 12.57% over the last week.

3. EnteroMedics, Inc. (ETRM): Focuses on the design and development of devices that use neuroblocking technology to treat obesity and associated co-morbidities, and other gastrointestinal disorders. Market cap of $71.66M. Net institutional shares purchased over the current quarter at 4.2M, which is 20.97% of the company's 20.03M share float. The stock has had a good month, gaining 11.43%.

4. Derma Sciences Inc. (DSCI): Engages in manufacturing, marketing, and selling wound care, wound closure and specialty securement devices, and skin care products. Market cap of $84.64M. Net institutional shares purchased over the current quarter at 1.2M, which is 19.70% of the company's 6.09M share float. The stock has gained 64.95% over the last year.

5. Preferred Bank (PFBC): Operates as a commercial bank in California. Market cap of $97.61M. Net institutional shares purchased over the current quarter at 1.9M, which is 15.52% of the company's 12.24M share float. The stock has lost 6.92% over the last year.

6. SemiLEDs Corporation (LEDS): Develops, manufactures, and sells light emitting diodes (LED) chips and LED components. Market cap of $81.08M. Net institutional shares purchased over the current quarter at 1.5M, which is 14.14% of the company's 10.61M share float. The stock has performed poorly over the last month, losing 25%.

7. Frisch's Restaurants Inc. (FRS): Operates restaurants in the United States. Market cap of $96.19M. Net institutional shares purchased over the current quarter at 10.3K, which is 13.08% of the company's 78.72K share float. The stock has lost 2.88% over the last year.

8. Ramtron International Corp. (RMTR): Designs, develops, and markets specialized semiconductor memory, microcontroller, and integrated semiconductor solutions. Market cap of $68.44M. Net institutional shares purchased over the current quarter at 3.7M, which is 12.61% of the company's 29.34M share float. It's been a rough couple of days for the stock, losing 5.29% over the last week.

9. CVD Equipment Corporation (CVV): Designs, develops, and manufactures equipment and process solutions used to develop and manufacture advanced solar, nano electronic components, materials, and coatings for research and industrial applications in the United States and internationally. Market cap of $85.73M. Net institutional shares purchased over the current quarter at 560.2K, which is 12.56% of the company's 4.46M share float. The stock has gained 107.28% over the last year.

10. Tudou Holdings Limited (TUDO): Operates as an online video company in the People's Republic of China. Market cap of $87.99M. Net institutional shares purchased over the current quarter at 1.7M, which is 12.13% of the company's 14.01M share float. The stock is currently stuck in a downtrend, trading 5.47% below its SMA20, 15.7% below its SMA50, and 30.56% below its SMA200. It's been a rough couple of days for the stock, losing 6.34% over the last week.

11. Uroplasty Inc. (UPI): Engages in the development, manufacture, and marketing of products for the treatment of voiding dysfunctions. Market cap of $89.48M. Net institutional shares purchased over the current quarter at 1.7M, which is 11.76% of the company's 14.45M share float. The stock is a short squeeze candidate, with a short float at 10.47% (equivalent to 16.81 days of average volume). It's been a rough couple of days for the stock, losing 8.51% over the last week.

12. Echo Therapeutics, Inc. (ECTE): Operates as a medical device and specialty pharmaceutical company in the United States. Market cap of $71.34M. Net institutional shares purchased over the current quarter at 2.5M, which is 10.46% of the company's 23.90M share float. It's been a rough couple of days for the stock, losing 13.56% over the last week.

13. CardioNet, Inc. (BEAT): Provides ambulatory, continuous, and real-time outpatient management solutions for monitoring relevant and timely clinical information regarding an individual's health in the United States. Market cap of $54.43M. Net institutional shares purchased over the current quarter at 1.7M, which is 9.27% of the company's 18.33M share float. The stock has lost 49.66% over the last year.

14. Bacterin International Holdings, Inc. (BONE): Develops, manufactures, and markets biologics products in the United States and internationally. Market cap of $91.33M. Net institutional shares purchased over the current quarter at 2.3M, which is 9.14% of the company's 25.16M share float. The stock has performed poorly over the last month, losing 22.95%.

15. Tree.Com, Inc. (TREE): Engages in lending business in the United States. Market cap of $61.88M. Net institutional shares purchased over the current quarter at 532.8K, which is 8.98% of the company's 5.93M share float. It's been a rough couple of days for the stock, losing 5.08% over the last week.

16. BCD Semiconductor Manufacturing Limited (BCDS): Engages in the design, manufacture, and sale of power management analog integrated circuits (ICs) and other semiconductor devices in the People's Republic of China. Market cap of $78.37M. Net institutional shares purchased over the current quarter at 1.2M, which is 8.88% of the company's 13.51M share float. The stock has had a couple of great days, gaining 6.52% over the last week.

17. Cinedigm Digital Cinema Corp. (CIDM): Provides technology solutions, financial services and advice, software services, electronic delivery, and content distribution services to owners and distributors of digital content to movie theatres and other venues. Market cap of $54.23M. Net institutional shares purchased over the current quarter at 3.0M, which is 8.33% of the company's 36.02M share float. The stock has lost 4% over the last year.

18. Farmers National Banc Corp. (FMNB): Regional Banks Industry. Market cap of $88.03M. Net institutional shares purchased over the current quarter at 1.4M, which is 7.91% of the company's 17.71M share float. The stock has had a couple of great days, gaining 6.82% over the last week.

19. LeMaitre Vascular, Inc. (LMAT): Develops, manufactures, and markets vascular devices for the treatment of peripheral vascular disease worldwide. Market cap of $83.98M. Net institutional shares purchased over the current quarter at 641.9K, which is 7.73% of the company's 8.30M share float. The stock has lost 15.63% over the last year.

20. Hampton Roads Bankshares Inc. (HMPR): Operates as the bank holding company for Bank of Hampton Roads (BOHR) and Shore Bank that provide community and commercial banking services primarily to individuals and small to medium-sized businesses. Market cap of $94.69M. Net institutional shares purchased over the current quarter at 337.0K, which is 7.39% of the company's 4.56M share float. It's been a rough couple of days for the stock, losing 6.8% over the last week.

*Institutional data sourced from Fidelity, all other data sourced from Finviz.

Source: 20 Micro-Cap Stocks Being Snapped Up By Hedge Funds