15 Small Cap Financial Stocks Hedge Funds Are Buying

11. TPG Inc. (NASDAQ:TPG)

Market Capitalization: $16.076 Billion 

Number of Hedge Fund Holders: 33

TPG Inc. (NASDAQ:TPG) is a global alternative asset management company that utilizes a diversified investment approach across asset classes, including private equity, credit, real estate, and public market strategies. On April 8th, Wells Fargo analyst Michael Brown maintained a Buy rating on the stock with a price target of $66.

The company started fiscal 2024 after recently acquiring Angelo Gordon, which the management noted to be a significant move to expand TPG Inc.’s (NASDAQ:TPG) capabilities in credit and real estate. The newly acquired firm is now operating as a fully integrated entity and has already started generating revenue opportunities for the company. Moreover, during the year the company also exceeded its fundraising ambition by raising $30 billion, reflecting a 54% increase from the previous year on a pro forma basis.

Vulcan Value Partners mentioned buying a position in TPG Inc. (NASDAQ:TPG) in their Q1 2025 investor letter. The fund highlighted that they have been following the company since its IPO in 2022 and have been impressed by its execution. They consider the company to be an alternative assets management company that has a great reputation and proven track record. Vulcan Value Partners also believes that the company will benefit from its long-term capital investment, which acts like an annual fee stream. It is one of the small-cap financial stocks that hedge funds are buying.

Vulcan Value Partners stated the following regarding TPG Inc. (NASDAQ:TPG) in its Q1 2025 investor letter:

“We purchased three positions during the quarter: Medpace Holdings Inc., Stanley Black & Decker, and TPG Inc. (NASDAQ:TPG). TPG is an alternative asset manager with a great reputation and proven track record. The alternative asset manager industry benefits from long-term capital, which leads to annuity-like fee streams. In addition, the industry continues to enjoy tailwinds from increasing capital flows into private markets. We have followed TPG since their IPO in 2022 and have been impressed with their execution. We expect TPG to continue to expand their market share in a growing industry, and we expect fundraising, fee revenue, and fee earnings to accelerate. TPG is in a great position to fundraise as the company consistently returns capital to LPs. Many in the industry struggle to return funds, and this differentiates TPG.”