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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. (click to enlarge)

Tool provided by Kapitall.

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

List sorted by PEG. List Average 1-Year Return: 40%.

1. Montpelier Re Holdings Ltd. (NYSE:MRH): Provides insurance and reinsurance solutions. Market cap at $1.26B, most recent closing price at $22.54. PEG at 0.96, Price/Free Cash Flow at 10.06. Net institutional purchases in the current quarter at 3.8M shares, which represents about 7.92% of the company's float of 47.95M shares.

2. DFC Global Corp. (NASDAQ:DLLR): Provides retail financial services to unbanked and under-banked consumers, and small businesses. Market cap at $785.24M, most recent closing price at $18.16. PEG at 0.91, Price/Free Cash Flow at 3.48. Net institutional purchases in the current quarter at 4.9M shares, which represents about 12.9% of the company's float of 37.97M shares.

3. SYNNEX Corp. (NYSE:SNX): Provides distribution and business process outsourcing services to resellers, retailers, and original equipment manufacturers (OEMs). Market cap at $1.31B, most recent closing price at $35.22. PEG at 0.81, Price/Free Cash Flow at 8.91. Net institutional purchases in the current quarter at 10.1M shares, which represents about 38.89% of the company's float of 25.97M shares.

4. NetEase, Inc. (NASDAQ:NTES): Engages in the development of applications, services, and other technologies for the Internet in China. Market cap at $6.67B, most recent closing price at $50.96. PEG at 0.69, Price/Free Cash Flow at 11.82. Net institutional purchases in the current quarter at 3.3M shares, which represents about 5.14% of the company's float of 64.18M shares.

5. Spirit Airlines, Inc. (NASDAQ:SAVE): Provides passenger airline service primarily to leisure travelers and travelers visiting friends and relatives. Market cap at $1.24B, most recent closing price at $17.09. PEG at 0.59, Price/Free Cash Flow at 6.1. Net institutional purchases in the current quarter at 2.7M shares, which represents about 5.6% of the company's float of 48.19M shares.

6. SciClone Pharmaceuticals, Inc. (NASDAQ:SCLN): Engages in the development and commercialization of novel therapeutics for the treatment of oncology, infectious diseases, cardiovascular, urological, respiratory, and central nervous system disorders in the People's Republic of China and internationally. Market cap at $315.78M, most recent closing price at $5.54. PEG at 0.56, Price/Free Cash Flow at 7.64. Net institutional purchases in the current quarter at 8.1M shares, which represents about 15.38% of the company's float of 52.68M shares.

7. Citizens Republic Bancorp, Inc (NASDAQ:CRBC): Operates as the bank holding company for Citizens Bank that provides banking and financial services to individuals and businesses in Michigan, Wisconsin, Ohio, and Indiana. Market cap at $822.76M, most recent closing price at $20.31. PEG at 0.51, Price/Free Cash Flow at 5.21. Net institutional purchases in the current quarter at 2.9M shares, which represents about 7.52% of the company's float of 38.58M shares.

8. Travelzoo Inc. (NASDAQ:TZOO): An Internet media company, publishes travel and entertainment offers from various travel and entertainment companies in North America and Europe. Market cap at $372.19M, most recent closing price at $23.32. PEG at 0.47, Price/Free Cash Flow at 12.48. Net institutional purchases in the current quarter at 671.2K shares, which represents about 9% of the company's float of 7.46M shares.

9. 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 $49.93B, most recent closing price at $33.82. PEG at 0.2, Price/Free Cash Flow at 9.52. Net institutional purchases in the current quarter at 110.8M shares, which represents about 6.4% of the company's float of 1.73B shares.

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

Source: 9 Undervalued Stocks Being Bought Aggressively By Hedge Funds