15 Small Cap Financial Stocks Hedge Funds Are Buying

12. Morningstar, Inc. (NASDAQ:MORN)

Market Capitalization: $11.856 Billion

Number of Hedge Fund Holders: 33 

Morningstar, Inc. (NASDAQ:MORN) is a leading financial investment research, data, and analysis company that operates in more than 29 countries. It serves a variety of clients ranging from individual investors to asset managers. Its key segments include Morningstar Data and Analytics, PitchBook, Morningstar Wealth, Morningstar Credit, and Morningstar Retirement.

Morningstar, Inc. (NASDAQ:MORN) reported double-digit revenue growth in 2024. Its fourth-quarter revenue grew 9.7% year-over-year, whereas the full-year revenue grew 11.6% during the same time. Morningstar Data and Analytics was one of the biggest contributors to growth with $196.0 million in Q4 revenue and was driven by increased headcount, spending on marketing, and also the impact of the sale of the Company’s Commodity And Energy Data business. On the other hand, the PitchBook segment contributed $162.5 million after improving 12.5% year-over-year. Management noted that the integration of PitchBook with aftermarket equity research and the use of AI to transform workflows were the biggest drivers of growth. Morningstar, Inc. (NASDAQ:MORN) is one of the small-cap financial stocks hedge funds are buying.