Bargain-Basement Picks From a Hedge Fund

In mid-February, the last of the fourth-quarter disclosures rolled in for hedge funds and other notable investors. We have found that, despite the delay in many of these 13F filings, it is still possible to use them to develop profitable investment strategies. The most popular small-cap stocks among hedge funds, for example, outperform the S&P 500 by an average of 18 percentage points per year. If you look at 13Fs as sources of ideas from top market players, you can proceed to refine these ideas further or do more research on interesting names.

With that in mind, let's take a look at the cheap stocks held by billionaire Richard Chilton's Chilton Investment -- that is, stocks priced at no more than 16x their trailing and forward price-to-earnings ratios....1051 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

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