Apple Inc. (AAPL), QUALCOMM, Inc. (QCOM) Among V2 Capital’s Top Tech Stocks

V2 Capital owns 76,180 shares of TE Connectivity Ltd (NYSE:TEL), with a value of $5.46 million. The position was also a new one, and in fact the largest new position V2 opened (though again, most of its positions are very close in value). TE Connectivity Ltd (NYSE:TEL) has seen a large volume of insider sales during 2015 as shares appreciated by more than 13%, culminating with the sale of 53,359 shares by Chairman and CEO Thomas Lynch on April 9. Shares have fallen about 4% in the second quarter though after a fairly wide earnings miss of more than 8%, though earnings were up by 6% year-over-year at $0.91. TE Connectivity Ltd (NYSE:TEL) had a very bullish new investor during the fourth quarter of 2014 in Ned Sedaka’s Para Advisors, which had 9% exposure to the stock in its small portfolio, making it the fund’s top long position.

Microchip Technology Inc. (NASDAQ:MCHP) is another of V2 Capital’s tech picks, with the fund owning 110,918 worth $5.42 million. Microchip Technology Inc. (NASDAQ:MCHP) releases it first quarter results after the closing bell later today and will be looking to build momentum off its last earnings report, which beat estimates and year-ago earnings at $0.60. The semiconductor industry is a challenging one for several reasons, which include shrinking margins, high production costs, and fierce competition, and that is reflected in Microchip’s 52-week performance, which stands at just 1%. Billionaire Ken Griffin is a firm believer in Microchip Technology Inc. (NASDAQ:MCHP) nonetheless, more than tripling his position during the fourth quarter to more than 1.81 million shares.

We track the 13F filings of funds like V2 Capital to determine the top 15 small-cap stocks held collectively by them. We gather and share this information based on 16 years of research, with backtests for the period between 1999 and 2012 and forward testing for the last 2.5 years. The results of our analysis show that these 15 most popular small-cap picks have a great potential to outperform the market, beating the S&P 500 Total Return Index by nearly one percentage point per month in backtests, and outperforming the market in 13 of the 16 years of testing. Since the beginning of forward testing in August 2012, the strategy has worked flawlessly, outperforming the market every year and returning 137.7% through April 14, which is more than 80 percentage points higher than the returns of the S&P 500 ETF (SPY) (see more details).

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