Compuware Corporation (NASDAQ:CPWR) is fourth on Starbuck’s hedge fund’s list of small cap stocks. Like the other companies mentioned in this story, Compuware Corporation (NASDAQ:CPWR) recently reported earnings. As pointed out by Zach’s Equity Research, Compuware Corporation (NASDAQ:CPWR) reported an impressive third quarter in January. Earnings per share surpassed its estimate by coming in at $.11, which was 9% higher than Zacks Consensus Estimate. The strong earnings report was the result of the company’s modest revenue growth and margin expansion, according to Zacks. The next time we’ll have to review how the company’s earnings are faring will come on May 21, when it reports its earnings for the fourth quarter. Since October when it was trading around $8.40, the stock has enjoyed a significant run up. It’s now trading within $1 of its 52-week high.
Wausau Paper Corp. (NYSE:WPP) rounds out the list of this top five. With sales of $822 million in 2012, it touts itself as a leading producer of environmentally conscious towel, tissue, soap and dispensing products. It has been going through a transformation, of sorts, thanks to the demands of Starboard. It used its 14.8% stake in the company as leverage in making it sell its paper segment, as well as reorganize its board. The company obliged, and recently nominated two members that Starboard recommended to its board. This will allow the company to concentrate on its tissue business, but it has an option to own up to 25 percent of the new company, noted the Reuters.
We track over 450 funds at Insider Monkey, and while this seems like a boatload, it represents close to the top 5% of all hedge funds active in the global financial markets. In terms of who’s “elite,” Starboard definitely in the conversation, and Wausau, Compuware Corporation (NASDAQ:CPWR), Progress Software, Integrated Device, and Office Depot Inc (NYSE:ODP) each represent strong investment plays in their own right. Check out the rest of Starboard’s stock picks here.