10 High Growth Micro-Cap Stocks to Buy According to Hedge Funds

Published on February 23, 2023 at 3:34 pm by Omer Farooq in Hedge Funds, News

In this article, we will look at 10 high growth micro-cap stocks to buy according to hedge funds. If you want to explore similar stocks, you can also take a look at 5 High Growth Micro-Cap Stocks to Buy According to Hedge Funds.

Investing in micro-cap stocks can be a great way to diversify your portfolio and to potentially generate superior returns to those of more traditional investments. Micro-cap stocks are defined as stocks with a market capitalization between $50 million and $300 million. These stocks are seen as being more risky than other stocks, but they also offer the potential for greater returns.

Micro-cap stocks typically require active management because they are more volatile and illiquid than larger stocks. BofA’s head of small and mid-cap strategy, Jill Carey Hall, thinks that 2023 is going to be “a year that’s more about picking your spots, active management over passive” and is also more bullish on small-caps as compared to large-caps and mega-caps.

Before investing in micro-cap stocks, it is important to do your research. These stocks can be volatile and often lack the liquidity of larger stocks. It is important to understand the company, its growth story, and its financials before investing. Additionally, investors should consider the company’s market position, size, and competition. This can provide insights into the company’s potential for future growth and help determine whether it could be a potentially successful investment.

When investing in micro-cap stocks, it is important to understand the differences between them and their larger counterparts. Micro-cap stocks, as mentioned above, are often more difficult to offload and can be subject to huge price swings. Moreover, these stocks are often less likely to be covered by analysts, which can make it difficult to assess their true value.

However, certain promising micro-cap stocks can be spotted if one could look at where smart money is placing its bets. Institutional investors have access to extensive research capabilities and are able to identify micro-cap stocks that have the potential to be high-growth opportunities. We have taken the time to compile a list of such high growth micro-cap stocks that are currently popular among elite money managers.

Some of hedge funds’ top micro-cap stock picks include Industrial Logistics Properties Trust (NASDAQ:ILPT), CVRx, Inc. (NASDAQ:CVRX), and BlackSky Technology Inc. (NYSE:BKSY). Let’s now look at these stocks, among others, in detail.

Image by Sergei Tokmakov Terms.Law from Pixabay

Our Methodology

To determine the best high growth micro-cap stocks to buy according to hedge funds, we screened for companies that had a market cap in the range $50 million and $300 million. We added additional filters for revenue growth to concentrate our search results. We screened for micro-cap stocks that had a quarterly year over year revenue growth rate of at least 50%. Finally, we consulted Insider Monkey’s database to narrow down our selection to micro-cap stocks that were the most widely held by institutional investors. We have ranked these stocks in ascending order of their quarterly revenue growth, measured on a year-over-year basis.

High Growth Micro-Cap Stocks to Buy According to Hedge Funds

10. American Public Education, Inc. (NASDAQ:APEI)

Quarterly Revenue Growth YoY as of September 30, 2022: 52.20%

Number of Hedge Fund Holders: 24

American Public Education, Inc. (NASDAQ:APEI) is an American education services company that provides online and on-campus education services. The company has three divisions: American Public University System, Rasmussen University, and Hondros College of Nursing. As of February 23, American Public Education, Inc. (NASDAQ:APEI) has gained 10.47% over the past 6 months.

American Public Education, Inc. (NASDAQ:APEI) grew its revenue by 52.20%, year over year, during the fiscal third quarter of 2022. The company’s revenue for the quarter amounted to $149.54 million and outperformed Wall Street consensus by $2.92 million. American Public Education, Inc. (NASDAQ:APEI) is one of the top high growth micro-cap stock picks of hedge funds.

At the end of Q4 2022, 24 hedge funds were bullish on American Public Education, Inc. (NASDAQ:APEI) and disclosed positions worth $76.4 million in the company. This is compared to 17 hedge funds in the preceding quarter with stakes worth $56.2 million. The hedge fund sentiment for the stock is positive.

As of December 31, Redwood Capital Management is the largest shareholder in American Public Education, Inc. (NASDAQ:APEI) and has a position worth $22.7 million in the company.

Some of the top high growth micro-cap stocks that are popular among institutional investors include American Public Education, Inc. (NASDAQ:APEI), Industrial Logistics Properties Trust (NASDAQ:ILPT), CVRx, Inc. (NASDAQ:CVRX), and BlackSky Technology Inc. (NYSE:BKSY).

9. Landsea Homes Corporation (NASDAQ:LSEA)

Quarterly Revenue Growth YoY as of September 30, 2022: 52.48%

Number of Hedge Fund Holders: 8

Landsea Homes Corporation (NASDAQ:LSEA) is an American homebuilding company. The company designs, constructs, and sells suburban and urban single-family homes in the United States. At the close of Q4 2022, 8 hedge funds were bullish on Landsea Homes Corporation (NASDAQ:LSEA) and disclosed positions worth $3.6 million in the company.

For the fiscal third quarter of 2022, Landsea Homes Corporation (NASDAQ:LSEA) generated a revenue of $326.50 million, up 52.48% year over year. The company reported an EPS of $0.69 and beat EPS estimates by $0.17. Landsea Homes Corporation (NASDAQ:LSEA) is ranked among the best high growth micro-cap stocks to buy now, according to hedge funds.

As of February 23, Landsea Homes Corporation (NASDAQ:LSEA) has gained 16.43% year to date and is trading at a PE multiple of 3x.

8. Consolidated Water Co. Ltd. (NASDAQ:CWCO)

Quarterly Revenue Growth YoY as of September 30, 2022: 52.63%

Number of Hedge Fund Holders: 7

Consolidated Water Co. Ltd. (NASDAQ:CWCO) operates as a water utility company in the Cayman Islands, the Bahamas, and the United States. The company has four business segments: Retail, Bulk, Services, and Manufacturing. As of December 31, Ken Griffin’s Citadel Investment Group is the top investor in Consolidated Water Co. Ltd. (NASDAQ:CWCO) and has disclosed a position worth $735.3 million in the company.

For the fiscal third quarter of 2022, Consolidated Water Co. Ltd. (NASDAQ:CWCO) generated a revenue of $25.05 million and outperformed market consensus by $0.95 million. The company’s revenue for the quarter grew by 52.63% on a year-over-year basis. As of February 23, the stock has returned 64.70% to investors over the past 12 months.

At the end of Q4 2022, 7 hedge funds held stakes in Consolidated Water Co. Ltd. (NASDAQ:CWCO). The total value of these stakes amounted to $9.35 million. Consolidated Water Co. Ltd. (NASDAQ:CWCO) is one of the best high growth micro-cap stocks to buy now according to hedge funds.

7. California BanCorp (NASDAQ:CALB)

Quarterly Revenue Growth YoY as of December 31, 2022: 59.23%

Number of Hedge Fund Holders: 5

California BanCorp (NASDAQ:CALB) is the holding company for California Bank of Commerce. The company provides commercial banking services in California. As of February 23, California BanCorp (NASDAQ:CALB) has gained 23.05% over the past 6 months and is trading at a PE multiple of 10x.

On January 26, California BanCorp (NASDAQ:CALB) posted strong earnings for the fiscal fourth quarter of 2022. The company reported an EPS of $0.91 and beat EPS estimates by $0.17. The company’s revenue for the quarter amounted to $23.82 million, up 59.23% year over year and ahead of Wall Street expectations by $2.70 million. California BanCorp (NASDAQ:CALB) is one of the best high growth micro-cap stocks to buy now according to hedge funds.

At the close of the fourth quarter of 2022, California BanCorp (NASDAQ:CALB) was a part of 5 investors’ portfolios that disclosed collective positions worth $12.2 million in the company. This is compared to 5 hedge funds in the third quarter of 2022 with stakes worth $8.1 million.

As of December 31, Fourthstone LLC is the top shareholder in California BanCorp (NASDAQ:CALB) and has a position worth $6 million in the company.

6. Veritone, Inc. (NASDAQ:VERI)

Quarterly Revenue Growth YoY as of September 30, 2022: 64.18%

Number of Hedge Fund Holders: 7

Veritone, Inc. (NASDAQ:VERI) is an American software company that specializes in artificial intelligence software solutions. The company has operations in the United States and the United Kingdom. As of February 23, Veritone, Inc. (NASDAQ:VERI) has gained 43.79% year to date.

Veritone, Inc. (NASDAQ:VERI) generated a revenue of $37.20 million during the fiscal third quarter of 2022, up 64.18% year over year and ahead of Wall Street estimates by $2.71 million. Veritone, Inc. (NASDAQ:VERI) is one of the best high growth micro-cap stocks to buy now according to hedge funds.

At the end of Q4 2022, Veritone, Inc. (NASDAQ:VERI) was spotted on 8 investors’ portfolios that disclosed collective stakes worth $8 million in the company. This is compared to 6 positions in the previous quarter with stakes worth $3.5 million. The hedge fund sentiment for the stock is positive.

As of December 31, D E Shaw is the largest shareholder in Veritone, Inc. (NASDAQ:VERI) and has a position worth $2.3 million in the company.

In addition to Veritone, Inc. (NASDAQ:VERI), some other micro-cap stocks that have consistently grown their revenue over their past four fiscal quarters include Industrial Logistics Properties Trust (NASDAQ:ILPT), CVRx, Inc. (NASDAQ:CVRX), and BlackSky Technology Inc. (NYSE:BKSY).

Click to continue reading and see 5 High Growth Micro-Cap Stocks to Buy According to Hedge Funds.

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

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As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

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AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

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This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

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The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

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10 High Growth Micro-Cap Stocks to Buy According to Hedge Funds

Published on February 23, 2023 at 3:34 pm by Omer Farooq in Hedge Funds, News

High Growth Micro-Cap Stocks to Buy According to Hedge Funds

10. American Public Education, Inc. (NASDAQ:APEI)

9. Landsea Homes Corporation (NASDAQ:LSEA)

8. Consolidated Water Co. Ltd. (NASDAQ:CWCO)

7. California BanCorp (NASDAQ:CALB)

6. Veritone, Inc. (NASDAQ:VERI)

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff

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10 High Growth Micro-Cap Stocks to Buy According to Hedge Funds

Published on February 23, 2023 at 3:34 pm by Omer Farooq in Hedge Funds, News

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High Growth Micro-Cap Stocks to Buy According to Hedge Funds

10. American Public Education, Inc. (NASDAQ:APEI)

9. Landsea Homes Corporation (NASDAQ:LSEA)

8. Consolidated Water Co. Ltd. (NASDAQ:CWCO)

7. California BanCorp (NASDAQ:CALB)

6. Veritone, Inc. (NASDAQ:VERI)

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on June 23, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

A New Dawn is Coming to U.S. Stocks

Published on June 13, 2025 at by Insider Monkey Staff