Top Investors’ Stock Portfolio: 5 Small-Cap Stocks To Buy

4. Cannae Holdings, Inc. (NYSE:CNNE)

Number of Hedge Fund Holders: 34
Market Cap: $2.88 billion

Cannae Holdings, Inc. (NYSE:CNNE) is an American holding company that actively manages and operates a group of companies and investments. The company stands fourth on our list of the best small-cap stocks to buy.

Recently, Oppenheimer reiterated its Buy rating on Cannae Holdings, Inc. (NYSE:CNNE), with a $52 price target, presenting a 30.2% upside.

As of Q2 2021, 34 hedge funds tracked by Insider Monkey have stakes in Cannae Holdings, Inc. (NYSE:CNNE), compared with 36 in the previous quarter. The total value of these stakes is $522.3 million.

Madison Funds mentioned Cannae Holdings, Inc. (NYSE:CNNE) in its Q2 2021 investor letter. Here is what the firm has to say:

“Cannae Holdings is an investment holding company chaired by Bill Foley, an investor-executive with one of the most impressive long-term entrepreneurial track records in corporate America. Over the past three and a half decades, he has been responsible for buying and growing numerous software, data analytics, and fintech businesses, including four that are publicly traded today, with market caps of $9 billion, $12 billion, $13 billion, and $90 billion. Cannae itself became independently public several years ago, and has amassed a strong record of market-beating results.

We purchased Cannae stock at an approximately 30% discount to its net asset value (“NAV”). As the large majority of Cannae’s value is in publicly-traded
companies, its NAV can be reliably estimated, which makes the discount somewhat puzzling. Two investments account for a substantial portion of the value: minority stakes in Dun & Bradstreet and Ceridian HCM Holding, both of which were acquired by Cannae in leveraged buyout transactions and have returned multiples of the initial equity invested. Ceridian has matured as an investment position, and Cannae has been selling down its stake for the past year and we expect that to continue. Dun & Bradstreet is still in the middle innings of the investment timeline, and we expect Cannae to benefit greatly from further growth in value. We also own a separate position in Dun & Bradstreet in our portfolio. Cannae also has investments in a myriad of venture-stage companies and companies beginning to truly monetize their scale. Some of them look very promising, and one or two winners would add tremendously to growth in NAV.”