Top Small-Cap Hedge Funds see assets jump by 5.5% Year-to-Date; TFS Capital & Starboard Value Lead the List

June 10th, 2013
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The Top 50 Small-Cap focused hedge funds now manage nearly $22.5 billion in small-cap assets, an increase of $1.2 billion or 5.5% year-to-date. The top 50 Small-Cap hedge funds now oversee $30.7 billion, allocating 76.5% of their overall assets to companies with market capitalizations that are less than $2 billion.

The Top Small-Cap Hedge fund list is led by TFS Capital LLC, Starboard Value LP and Blue Harbour Group. West Chester, PA-based TFS Capital LLC, also known as Technical Financial Services, took hold of the top spot with $2.5 billion in small-cap assets, after having been #2 on last quarter’s list. TFS is led by its co-founders Larry Eiben, Kevin Gates and Richard Gates. Since its inception, TFS’s investment process has relied on its quantitative models that are designed to exploit market inefficiencies.

Notably, Starboard Value LP is known for its activist investing strategy, having launched a very public battle with the executives at Office Depot (ODP) last year. Blue Harbour has also been known to work closely with management of companies it invests in, although it is less likely to takes things public, and instead tends to take a more “collaborative and supportive” approach.

Rounding out the top 5 hedge funds on the small-cap list are Deerfield Management and RiverNorth Capital Management. Healthcare industry-focused Deerfield is based in New York and is led by James E. Flynn, while Chicago-based RiverNorth Capital employs a Multi-Strategy approach that is led by its Chief Investment Officer Patrick Galley.

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.
For Detailed Investor Profiles on these Investors, click below:
Deerfield Management Co
Starboard Value
Related People: James E. Flynn; Jeffrey Smith, Mark Mitchell, Peter Feld, Gavin Molinelli, Kenneth Marlin
Related Entities: ; Deerfield Capital; Deerfield International LTD; Deerfield Special Situations; Ramius Capital Group*; Ramius Small-Cap Value*; RCG STARBOARD ADVISORS LLC; Starboard Intermediate Fund; Starboard Value and Opportunity Fund
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles; Featured Reports


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