The Top 50 Small-Cap focused hedge funds now manage $27.7 billion in small-cap assets, according to the most recent rankings. Overall, the top Small-Cap hedge funds oversee $43.1 billion in equities, dedicating nearly 65% of their portfolios to companies with market capitalizations that are less than $2 billion.
The Top Small-Cap Hedge fund list is once again led by James Flynn's Deerfield Management. The healthcare focused include #3 hedge fund's top small-cap bets include $88mm in NxStage Medical (NASDAQ:NXTM), $88mm in Array Biopharma (NASDAQ:ARRY) and $85mm in Avalanche Biotechnologies (AAVL).
Claiming the #2 spot on the list is Brian Schmucker and Patrick Galley's RiverNorth Capital Management. The Chicago-based hedge fund reported $1.3 billion in small-cap assets.
Rounding out the top 3 is Matthew Lindenbaum and Bennett Lindenbaum's financials focused Basswood Capital with $1.1 billion in small-cap assets. The Lindenbaum brothers top small-cap bets include $53mm in CenterState Banks (NASDAQ:CSFL), $47mm in Cardinal Financial (NASDAQ:CFNL) and $39mm in Metro Bancorp (NASDAQ:METR).
Not surprisingly, New York State is home to 20 of the top 50 Small-Cap hedge funds. While the Empire State is king, Connecticut, California and Massachusetts are also well represented on the list.
Ranking Methodology: The Top 50 Small-Cap Hedge Fund rankings are compiled on a quarterly basis using hedge fund firms' overall U.S. equity assets under management. The Small-Cap list includes the top hedge funds that have more than 50% of their U.S. equity assets invested in U.S. listed small-cap companies, which have market capitalizations that are less than $2 billion. To view the Top Small-Cap Hedge Fund list in its entirety, please visit HedgeTracker's Hedge Fund Portal.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.