Billionaire Steve Cohen’s Top 5 Small-Cap Stock Picks

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In this article we discuss the billionaire Steve Cohen’s top 5 small-cap stock picks. If you want to read our detailed analysis of Cohen’s history and hedge fund performance, go directly to Billionaire Steve Cohen’s Top 10 Small-Cap Stock Picks.

5. NMI Holdings, Inc. (NASDAQ: NMIH)

Number of Hedge Fund Holders: 22

NMI Holdings is a mortgage insurance company that offers private mortgages and high-quality customer service. The company is currently waiting for approval from Freddie Mac and Fannie Mae to start providing mortgage insurance at the national level. Howard Marks is the company’s largest hedge fund investor with more than 4.9 million shares. NMIH is also one of Steve Cohen’s top 10 small-cap stock picks.

  • NMI has outperformed EPS estimates almost 9 out of 10 times in the last 2 years. It has also outperformed revenue projections 75% of the time.
  • NMI Holdings’ EPS estimates were revised 7 times upward and downward 2 times in the last 3 months. Its revenue estimates had 2 upward revisions and 2 downward revisions.

With a $112.4 million stake in NMI Holdings, Oaktree Capital Management owns 4.96 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 22 hedge funds held stakes in NMIH as of the end of the fourth quarter, versus 19 funds in the third quarter.

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