Rovi Corporation (ROVI) Tumbles, Netflix, Inc. (NFLX) Soars Following Supreme Court Ruling

We don’t just track the latest moves of funds. We are, in fact, more interested in their 13F filings, which we use to determine the top 15 small-cap stocks held by the funds we track. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests. Moreover, since the beginning of forward testing in August 2012, the strategy worked brilliantly, outperforming the market every year and returning 139%, which is more than 80 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

Just before the second quarter 2015 financial results, Tom Carson, CEO of Rovi Corp, has boosted his investments in the company with the additional purchase of 10,000 shares on July 6. However, there are concerns about the size of the investment at just$158,000, a fraction of the CEO’s salary, as it indicates that the CEO is not exactly “all in” on the stock of the company.

Nonetheless, we recommend investors initiate a position in the company following in the footsteps of its CEO, and given the large dip today, and the representation that activist Welling now has on the company’s board.

Disclosure: None