5 Small-Cap Stocks to Buy According to Australian Billionaire Kerr Neilson

3. TAL Education Group (NYSE:TAL)

Neilson’s Stake Value: $32,731,000

Percentage of Neilson’s 13F Portfolio: 0.75%

Market Cap: $2.889 billion 

Number of Hedge Fund Holders: 27

The third stock on our list of the top 5 small-cap stocks to buy according to Australian billionaire Kerr Neilson is TAL Education Group (NYSE:TAL), which is a Chinese holding company specializing in educational technology that will offer balanced development and extracurricular learning across public and private schooling systems. The company has a market cap of $2.889 billion.

Neilson’s Platinum Asset Management owns about 1.29 million shares in TAL Education Group (NYSE:TAL), amounting to $32.73 million, and making up 0.75% of Neilson’s 13F portfolio. 

Out of the hedge funds being tracked by Insider Monkey, San Francisco-based Yiheng Capital is the leading shareholder in TAL Education Group (NYSE:TAL), with 5.77 million shares worth over $145.7 million.

Tao Value mentioned TAL Education Group (NYSE:TAL) in its Q2 2021 investor letter. Here is what they said: 

“On detracting side, our largest loss came from our recent new education positions, TAL. New legislation on both private K9 education & private tutoring materialized in the past quarter, and they turned out to be irrationally harsher & broader than anticipated. When such a worst scenario folds out, the prospects of the company undoubtedly have changed significantly. Although I believe that market overreacted on this company, it appears that I have made a mistake underestimating the regulatory impact and picking it up too soon. Our position sizes reflected my evaluation of the risk, and I decided to stay put.”