Potomac Capital Management invests mainly in small-cap stocks and options under the management of Paul Solit since 1998. More than a half of the fund’s picks are technology companies. The fund held 77 positions in its 13F portfolio valued at $93.15 million at the end of first quarter of 2015. Numerex Corp. (NASDAQ:NMRX), Black Diamond Inc (NASDAQ:BDE), Axcelis Technologies Inc (NASDAQ:ACLS) and Audience Inc (NASDAQ:ADNC) represent the largest positions of Potomac Capital Management.
Potomac Capital Management has an equity portfolio valued at less than $100 million and has long positions in more than 60 companies and we track its moves as part of our small-cap strategy, alongside more than 700 other investors. Our strategy involves imitating a portfolio that consists of 15 most popular small-cap ideas among the funds from our database and it has an excellent track record by having gained around 137% in the last 2.5 years, outperforming the S&P 500 ETF (SPY) by 82 percentage points (see the details).
Numerex Corp. (NASDAQ:NMRX) was the top stock pick of Paul Solit at the end of the first quarter of 2015. The investor held 685,572 shares of the company valued at $7.81 million, an increase of 7,036 shares from the previous quarter. Numerex Corp. (NASDAQ:NMRX) is a $202.16 million communication equipment provider operating worldwide. The company reported revenue of $93.87 million and net income of $0.09 per share for 2014 versus $78 million and $0.03 a year earlier. Chuck Royce’s Royce & Associates is another investor of Numerex Corp. (NASDAQ:NMRX) with its 1.09 million shares held at the end of 2014.
The second largest investment of Potomac Capital Management at the end of March is represented by Black Diamond Inc (NASDAQ:BDE). Paul Solit’s position in the company includes 522,510 shares worth $4.94 million, the stake being increased by 483,410 shares during the first quarter of 2015. Sporting goods producer has a market cap of $289.76 million and a P/E ratio of 20.60, which is significantly below the industry average of 37.70. Matthew A. Weatherbie’s Weatherbie Capital and Chuck Royce’s Royce & Associates are two other investors of Black Diamond Inc (NASDAQ:BDE).
Axcelis Technologies Inc (NASDAQ:ACLS) is another one of Potomac Capital Management’s tech picks, the position containing 81,392 shares valued at $2.67 million. Axcelis Technologies Inc (NASDAQ:ACLS) produces ion implant systems for the semiconductor industry, which has a global yearly sales volume of around $1 billion. The company has a market share of around 12.3% as of 2014, up from 8.8% a year earlier and it expects further growth to between 17% and 20% during 2015. For the first quarter of 2015, Axcelis Technologies Inc (NASDAQ:ACLS) reported revenue of $73.3 million and gross margin of 31.9%. Richard Mashaal’s Rima Senvest Management was a major investor in Axcelis Technologies Inc (NASDAQ:ACLS) with 5.29 million shares held at the end of last year.
In Audience Inc (NASDAQ:ADNC), Potomac Capital Management has initiated a new position of 795,694 shares valued at $3.61 million during the first quarter of 2015. Audience Inc (NASDAQ:ADNC) is a $111.34 million voice and audio solutions provider for mobile devices. For the first quarter of 2015, the company recorded revenue of $18.44 million, a 49% decrease from the same quarter of 2014. Moreover, recently Audience Inc (NASDAQ:ADNC) has entered into a merger agreement with Knowles Corporation (NYSE:KN), which will pay $5.00 per share in cash and stock. Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management held 115,941 shares of the company, according to their last 13F filing.
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