In this article, we will look at the 7 Best Penny Asset Management Stocks to Buy Now.
On July 14, State Street Investment Management released its Q3 2025 credit research outlook, highlighting financial stability despite the ongoing tariff risks, inflation, and geopolitical tensions. Similarly, the credit markets also remain resilient; however, there are challenges that persist due to high interest rates and policy uncertainty, thereby making segments, including commercial real estate and leveraged loans, riskier.
The report noted that the uncertainty regarding the economic and market conditions was expected to ease by mid-2025; however, the markets have not fully consolidated the risks yet. Despite this, the financial environment remains more accommodative as compared to the rate-hike era of 2022 and 2023. State Street Investment stressed that under these conditions, the credit risk remains relatively expensive; however, the report noted high-quality assets and banks with strong balance sheets to be viable investment opportunities.
With that, let’s take a look at the 7 best penny asset management stocks to buy now.
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Our Methodology
To curate the list of 7 best penny asset management stocks to buy now, we used the Finviz stock screener. Using the screener, we aggregated a list of Penny Asset Management stocks (those trading below $5). Next, we ranked these stocks in ascending order of the number of hedge fund holders sourced from Insider Monkey’s Q1 2025 database.
Why are we interested in the stocks that hedge funds pile into? 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).
7 Best Penny Asset Management Stocks to Buy Now
7. 180 Degree Capital Corp. (NASDAQ:TURN)
Price: $4.42
Number of Hedge Fund Holders: 1
180 Degree Capital Corp. (NASDAQ:TURN) is one of the Best Penny Asset Management Stocks to Buy Now. On August 15, 180 Degree Capital Corp. (NASDAQ:TURN) released an update regarding the planned business combination with Mount Logan Capital.
Management announced that as of August 14, 2025, more than 57% of the outstanding shares of the company voted in favour of the business combination. This figure represents 90% of the shares that participated in the voting. Moreover, around 50% of all the shareholders of 180 Degree Capital Corp. (NASDAQ:TURN) have voted for other proposals that are to be discussed in the upcoming shareholders’ meeting on August 22.
On the other hand, Mount Logan Capital has already received above threshold votes, known as proxies, to go ahead with the resolution of this deal. Both companies are engaging in dialogues and are optimistic that, with shareholders’ support, they would be able to combine their businesses to form a new company.
180 Degree Capital Corp. (NASDAQ:TURN) is a closed-end investment company that manages its own investments. The company aims to generate capital growth and current income through investing in various industries.
6. U.S. Global Investors, Inc. (NASDAQ:GROW)
Price: $2.46
Number of Hedge Fund Holders: 2
U.S. Global Investors, Inc. (NASDAQ:GROW) is one of the Best Penny Asset Management Stocks to Buy Now. On August 8, U.S. Global Investors, Inc. (NASDAQ:GROW) announced that its shipping ETF called the US Global Sea to Sky Cargo ETF (SEA) is listed on the Mexican Stock Exchange.
After the listing, SEA is now the third US Global ETF available for Mexican investors, the other two are US Global Jets ETF and the US Global GO Gold and Precious Metal Miners ETF. The press release highlighted that the Mexican Stock Exchange is the second largest in Latin America and has a market capitalization of more than $530 billion. Moreover, CEO and CIO of U.S. Global Investors, Inc. (NASDAQ:GROW), Frank Holmes, noted that SEA is the first pure-play ETF for maritime shipping and air freight on BMV.
U.S. Global Investors, Inc. (NASDAQ:GROW) is an investment advisory firm that offers mutual funds and exchange-traded funds (ETFs) to individual and institutional investors.
5. CaliberCos Inc. (NASDAQ:CWD)
Price: $1.87
Number of Hedge Fund Holders: 2
CaliberCos Inc. (NASDAQ:CWD) is one of the Best Penny Asset Management Stocks to Buy Now. On August 13, CaliberCos Inc. (NASDAQ:CWD) announced results for its fiscal second quarter of 2025.
The company delivered quarterly revenue of $4.13 million, down slightly from $4.2 million a year ago. All of this revenue came from asset management fees as the company did not earn any performance-based fees this quarter. As a result, the platform faced a net loss of $4.9 million, which was slightly higher than $4.6 million loss last year.
Management remains optimistic as CEO Chris Loeffler noted the results to be a positive step towards profitability during the latter half of 2025. Moreover, the company has also ensured some cost-cutting measures by cutting overhead and is focusing on hospitality, multifamily, industrial real estate, and opportunistic investments.
CaliberCos Inc. (NASDAQ:CWD) is an alternative asset management firm that builds wealth for clients by managing investment funds, private syndications, and direct investments.
4. AlTi Global, Inc. (NASDAQ:ALTI)
Price: $4.30
Number of Hedge Fund Holders: 4
AlTi Global, Inc. (NASDAQ:ALTI) is one of the Best Penny Asset Management Stocks to Buy Now. On August 11, AlTi Global, Inc. (NASDAQ:ALTI) released its fiscal second-quarter results for 2025. The company delivered mixed results with revenue topping analyst expectations, while the EPS fell slightly short of the consensus.
The company delivered $53 million in revenue, up 7% year-over-year and ahead of Wall Street estimates by $2.53 million. Management noted that the core driver of this growth was the Wealth Management and Capital Solutions segment, which grew 8% to contribute $52 million. This was driven by higher assets under management as a result of strong market conditions, acquisitions, and better returns on assets.
Management also noted that the results do not yet show the full potential, as temporary effects from transformation and partial gains from investments affected the results.
AlTi Global, Inc. (NASDAQ:ALTI) is an independent wealth manager that serves entrepreneurs, families, institutions, and emerging leaders. The company offers comprehensive wealth management and investment advisory services.
3. Innventure, Inc. (NASDAQ:INV)
Price: $4.39
Number of Hedge Fund Holders: 5
Innventure, Inc. (NASDAQ:INV) is one of the Best Penny Asset Management Stocks to Buy Now. On August 15, Northland Securities analyst Nehal Chokshi maintained a Buy rating on Innventure, Inc. (NASDAQ:INV) with a price target of $13.
The bullish sentiment by Northland follows the company’s second-quarter results for fiscal 2025. The company posted encouraging results with $0.48 million in revenue, up from $0.22 million a year ago. Management noted key achievements across its operating companies, including Accelsius, which expanded market reach by new deployments at major data centers like Global Switch, Compucenter, and Equinix. Moreover, Accelsius also achieved important thermal performance milestones with its NeuCool technology.
Similarly, AeroFlexx, another company operated by Innventure, Inc. (NASDAQ:INV), reported a fourth consecutive quarter of revenue growth and earned Critical Guidance Recognition from the Association of Plastic Recyclers. Management remains optimistic about the second half of 2025 and expects 2025 to be a year of revenue growth across its businesses.
Innventure, Inc. (NASDAQ:INV) funds and operates companies that develop transformative and sustainable technology solutions sourced from multinational corporations.
2. Great Elm Group, Inc. (NASDAQ:GEG)
Price: $2.12
Number of Hedge Fund Holders: 6
Great Elm Group, Inc. (NASDAQ:GEG) is one of the Best Penny Asset Management Stocks to Buy Now. On August 1, Great Elm Group, Inc. (NASDAQ:GEG) announced a major strategic partnership with KLIM, which is an alternative investment firm managing over $30 billion.
Under this partnership, KLIM has agreed to provide $100 million as a term loan to the company’s Monomoy REIT platform. The term loan comes with the option to increase by $50 million later. Moreover, KLIM is also buying 4.9% of Great Elm Group, Inc.’s (NASDAQ:GEG) common stock and gaining a profits interest in Great Elm Real Estate Ventures.
Monomoy is the company’s real estate platform that offers project management, construction, asset management, and other services for industrial real estate tenants.
Great Elm Group, Inc. (NASDAQ:GEG) is an alternative asset management company that focuses on building a diverse portfolio across credit, real estate, specialty finance, and other alternative strategies.
1. Prospect Capital Corporation (NASDAQ:PSEC)
Price: $2.85
Number of Hedge Fund Holders: 10
Prospect Capital Corporation (NASDAQ:PSEC) is one of the Best Penny Asset Management Stocks to Buy Now. On July 1, Prospect Capital Corporation (NASDAQ:PSEC) announced completing the acquisition of QC Holdings, a consumer credit company, for an all-cash transaction valued at $115 million. However, despite this, the stock has fallen 10.48% since the announcement.
Management noted that the acquired company will continue operating from its headquarters in Lenexa, Kansas, and the current management, headed by CEO Darrin Andersen, will stay in charge after the acquisition. Moreover, management also highlighted that shareholders of QC Holdings as of June 30 will receive instructions for submitting their certificates or payments. Shareholders with certificates were expected to get a letter soon, and direct registrants were also expected to receive payments within a few business days of the transaction.
Prospect Capital Corporation (NASDAQ:PSEC) is a business development company that lends to and invests in private companies. It generates income and grows capital by investing in different types of debt and equity.
While we acknowledge the potential of PSEC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PSEC and that has 100x upside potential, check out our report about this cheapest AI stock.
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