5 Best Undervalued Small-Cap Stocks According to Hedge Funds

In this article, we discuss the 5 best undervalued small-cap stocks according to hedge funds. If you want to read about some more undervalued stocks popular among hedge funds, go directly to 10 Best Undervalued Small-Cap Stocks According to Hedge Funds. 

5. Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI)

Number of Hedge Fund Holders: 10

PE Ratio: 9.62

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) is a New York-based real estate investment trust. The company has an impressive dividend history and has consistently handed out the payouts to shareholders for the past eleven years. On March 15, it declared a quarterly dividend of $0.35 per share, in line with previous. The forward yield was 10.37%. As inflation surges and interest rates rise, investors are actively searching for firms with solid fundamentals to ride the storm. Apollo offers a high income in this volatile environment. 

Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) offers good value for money since it invests in mortgages that are secured by commercial properties. As these are floating-rate loans, these provide rising income in a high interest rates environment. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Balyasny Asset Management is a leading shareholder in Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) with 1.2 million shares worth more than $16 million. 

At the end of the fourth quarter of 2021, 10 hedge funds in the database of Insider Monkey held stakes worth $27 million in Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI), compared to 7 in the preceding quarter worth $7 million.