5 Best Small-Cap Value Stocks to Buy According to Bares Capital

In this article, we will list the 5 best small-cap value stocks to buy according to Bares Capital. Please visit 10 Best Small-Cap Value Stocks to Buy According to Bares Capital if you would like to see the extended list and the methodology behind it.

5. Wayfair Inc. (NYSE:W)

Bares Capital Management’s Stake: $60 Million

Wayfair Inc. (NYSE:W) is a long-term holding in the 13F portfolio of Bares Capital. The fund first disclosed a stake in the company back in the first quarter of 2019. This position comprised a little over 1.5 million shares. By the first quarter of 2021, the fund had grown this holding to more than 4.7 million shares. Thereafter, it started trimming this position, reducing it to over 2.5 million shares by the middle of 2022. Another buying spree was registered after this during which the fund grew this holding to around 5 million shares. Since then, the fund has been trimming the stake. Filings for the third quarter of 2025 show that the fund owned 672,000 shares in the firm, down a little over 8% compared to filings for the previous quarter.

Wayfair Inc. (NYSE:W) is being targeted by elite investors as the firm has an uncanny ability to capture market share in a wobbly home-goods sector while expanding physical retail footprint. In the most recent earnings cycle, Wayfair signaled a strategic pivot that attracted growth-oriented hedge funds. Management noted a willingness to let gross margins dip slightly below 30% in exchange for faster market share gains. Large institutions often prefer a company that leans in during industry downturns. Funds are betting that by undercutting competitors now, Wayfair will emerge as the dominant, high-scale winner when the housing and furniture markets fully rebound in late 2026.