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Do you worry about stock volatility when choosing among stocks? One idea is to consider a stock's recent trading volatility.

To illustrate, we ran a screen. We began by screening for stocks outperforming the market over the last quarter, with performance over 20%. We then screened these names for those with low volatility over the last month, with average intra-day volatility under 2% (meaning these stocks on average have traded within +/- 2% each day over that last month).

Finally, we screened for those stocks with significant net institutional purchases over the last quarter, indicating institutional investors such as hedge fund managers expect these names to outperform.

Interactive Chart: Press Play to compare changes in market cap 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. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks offer less risk? Use this list as a starting point for your own analysis.

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

1. Retalix Ltd. (NASDAQ:RTLX): Provides integrated software solutions to food and fuel retailers, grocery, convenience stores, and foodservice distributors primarily in Israel, the United States, and Europe. Market cap at $403.42M, most recent closing price at $21.0. Performance over the last quarter at 22.60%. Average intra-day volatility over the last month at 1.57%. Net institutional purchases in the current quarter at 3.1M shares, which represents about 20.61% of the company's float of 15.04M shares.

2. Sally Beauty Holdings Inc. (NYSE:SBH): Engages in the distribution and retail of professional beauty supplies. Market cap at $4.86B, most recent closing price at $25.60. Performance over the last quarter at 29.35%. Average intra-day volatility over the last month at 1.95%. Net institutional purchases in the current quarter at 23.2M shares, which represents about 16.83% of the company's float of 137.88M shares.

3. O'Charley's Inc. (NASDAQ:CHUX): Operates as a multi-concept restaurant company in the United States. Market cap at $214.43M, most recent closing price at $9.84. Performance over the last quarter at 63.35%. Average intra-day volatility over the last month at 0.19%. Net institutional purchases in the current quarter at 2.3M shares, which represents about 11.62% of the company's float of 19.79M shares.

4. Exlservice Holdings, Inc. (NASDAQ:EXLS): Outsources business processes, including transaction processing and Internet and voice-based customer care services, to Global 1000 companies in banking, financial services, and insurance. Market cap at $870.09M, most recent closing price at $27.75. Performance over the last quarter at 21.00%. Average intra-day volatility over the last month at 1.46%. Net institutional purchases in the current quarter at 1.5M shares, which represents about 6.59% of the company's float of 22.76M shares.

5. AboveNet, Inc. (NYSE:ABVT): Provides high-bandwidth connectivity solutions to corporate enterprise clients and communication carriers primarily in the United States and the United Kingdom. Market cap at $2.18B, most recent closing price at $83.03. Performance over the last quarter at 26.04%. Average intra-day volatility over the last month at 0.34%. Net institutional purchases in the current quarter at 1.4M shares, which represents about 5.96% of the company's float of 23.50M shares.

6. Transcend Services, Inc. (TRCR): Provides medical transcription services in the United States. Market cap at $315.65M, most recent closing price at $29.50. Performance over the last quarter at 27.48%. Average intra-day volatility over the last month at 0.20%. Net institutional purchases in the current quarter at 544.2K shares, which represents about 5.81% of the company's float of 9.36M shares.

7. Macquarie Infrastructure Company LLC (NYSE:MIC): Operates in a diversified group of infrastructure businesses in the United States. Market cap at $1.59B, most recent closing price at $33.56. Performance over the last quarter at 22.76%. Average intra-day volatility over the last month at 1.88%. Net institutional purchases in the current quarter at 1.9M shares, which represents about 5.49% of the company's float of 34.62M shares.

8. Knology, Inc. (NASDAQ:KNOL): Provides video, voice, data, and advanced communications services to residential and business customers in the southeastern and midwestern United States. Market cap at $737.77M, most recent closing price at $19.41. Performance over the last quarter at 34.12%. Average intra-day volatility over the last month at 1.83%. Net institutional purchases in the current quarter at 1.4M shares, which represents about 5.46% of the company's float of 25.62M shares.

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

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 8 Outperforming Low Risk Stocks Being Bought Up By Hedge Funds