The Favorite Small-Cap Stock Among Hedge Funds

In the following video, Motley Fool contributing writer John Reeves takes a look at some of the most popular small-cap stocks today with hedge funds, as a potential place for individual investors to find stock ideas. He discusses why Radian Group was the number one pick, with $115.83 million worth of shares purchased by hedge funds in 2013, and why the continuing housing recovery trend in the United States that is getting Radian so much attention could make several other stocks interesting buys, as well.

With the American markets reaching new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

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John Reeves has no position in any stocks mentioned. The Motley Fool recommends Home Depot, Lowe's, and Tile Shop Holdings. The Motley Fool owns shares of Supervalu and Tile Shop Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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