On Tuesday, the Dow Jones Industrial Average dropped 0.98%, mainly because of worries about rising US inflation and mixed earnings reports from big banks. The S&P 500 also fell by 0.4%, easing off the fresh record high it had reached earlier in the session. In contrast, the Nasdaq Composite gained 0.18% as a result of gains in technology stocks.
The inflation data that was released on Tuesday showed an increase in June compared to May levels. The consumer price index (CPI) rose by 0.3% on the month, bringing the annual inflation rate to 2.7%. Core CPI, which excludes food and energy prices, increased 0.2% month over month, which was less than expected. However, it grew 2.9% year-over-year, which aligned with estimates.
This report sparked fears that President Trump’s tariffs are pushing prices higher. On Saturday, the US President announced plans to impose a 30% tariff on imports from the European Union and Mexico starting August 1.
Matthew Ryan, head of market strategy at global financial services firm Ebury, noted that the latest inflation report practically confirms that President Trump‘s tariffs contributed to pushing consumer prices higher in June.
With this background in mind, let’s take a look at the 10 best small-cap stocks to buy according to billionaires.
A senior executive looking up at a large boardroom filled with the stocks their company manages.
Our Methodology
To compile our list of the 10 best small-cap stocks to buy according to billionaires, we used the Finviz stock screener to look for stocks with a market capitalization between $300 million and $2 billion. We sorted our results based on market capitalization and picked the top 100 stocks. Next, we focused on the top 10 stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 10 best small-cap stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q1 2025 database of 1,000 elite hedge funds.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Small-Cap Stocks to Buy According to Billionaires
10. Viasat, Inc. (NASDAQ:VSAT)
Market Capitalization: $1.97 Billion
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 32
Viasat, Inc. (NASDAQ:VSAT) is one of the best small-cap stocks to buy according to billionaires. On July 1, Viasat, Inc. (NASDAQ:VSAT) announced that Inmarsat Maritime has received orders for more than 1,000 vessels for NexusWave.
This strong performance came after months of rigorous development and testing. In just six months since the service launched, global customers are already adopting NexusWave for their fleets. This shows that the global shipping industry has a strong appetite for a fully managed, high-speed, bonded connectivity service.
In May 2023, Viasat, Inc. (NASDAQ:VSAT) completed its acquisition of Inmarsat to bring together the teams, technologies, and resources of both companies to form a new global communications partner.
Inmarsat’s NexusWave combines Global Xpress (GX) Ka-band, low-Earth orbit (LEO), coastal LTE, and resilient L-band services into one fully managed solution. Recent tests have shown that NexusWave can reach download speeds up to 340 Mbps and upload speeds up to 80 Mbps. The network is very reliable as availability on vessels has consistently surpassed 99.9%. Additionally, the quality of video calls is not affected by the availability or performance of any single network.
Users also enjoy unlimited data, global coverage, and secure-by-design infrastructure to protect the connections at sea.
Viasat, Inc. (NASDAQ:VSAT) is a global communications technology company that provides internet and other communication services to consumers, businesses, governments, and militaries around the world. The company offers important communications solutions that are available on the ground, in the air, at sea, and in space.
9. WisdomTree, Inc. (NYSE:WT)
Market Capitalization: $1.85 Billion
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 34
WisdomTree, Inc. (NYSE:WT) is one of the best small-cap stocks to buy according to billionaires. On June 26, Goldman Sachs analyst Alexander Blostein upgraded WisdomTree, Inc. (NYSE:WT) from “Sell” to “Neutral” and raised the price target from $9.50 to $11.90.
The research firm sees encouraging signs that WisdomTree, Inc. (NYSE:WT) is experiencing broader and faster fund flows, which are expected to drive unique organic base fee growth in the coming years. Goldman Sachs pointed out that the company’s mix of flows is becoming more diversified.
The analyst told investors in a research note that WisdomTree, Inc. (NYSE:WT) has averaged about 9% organic growth over the past three years. Goldman Sachs expects this positive trend to continue and projects mid-to-high single-digit growth in organic base fees through 2027.
Additionally, the firm increased its earnings per share estimates for WisdomTree, Inc. (NYSE:WT). The new forecasts are $0.73 for 2025, $0.84 for 2026, and $0.95 for 2027. These are above the firm’s previous estimates of $0.72 for 2025, $0.78 for 2026, and $0.84 for 2027.
WisdomTree is a global financial innovator, offering a well-diversified suite of exchange-traded products (ETPs), models, solutions and products leveraging blockchain technology.
WisdomTree, Inc. (NYSE:WT) is an innovative company in the financial sector that specializes in exchange-traded products (ETPs), including ETFs, and also operates as an asset manager.
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