The 10 Smallest Cap Stocks With the Largest Institutional Investment

By Bristol Voss  SEP 26, 2012 12:10 PM

Torch Energy Royalty Trust (NYSE:TRU) tops the list with a majority of the company owned by institutional investors, but Ameriana Bancorp (NASDAQ:ASBI) had the highest return at 63.64%.

 


MINYANVILLE ORIGINAL Torch Energy Royalty Trust (NYSE:TRU) was the smallest cap stock we could find that had the largest share of institutional holdings. With just $11.61 million in market capitalization, the firm's largest institutional holder is Silver Point Capital with 5.365 million shares worth $7.243 million at today's stock price of $1.35. This gave the Greenwich-based private investment firm a 62.38% holding in the oil and gas property trust, according to Minyanville's research.

The small cap companies with the largest institutional holders ranged in market capitalization from $11.61 million to $26.97 million. The percentages held by institutional investors ranged from a low of 13.71% to a high of 62.40%. While Silver Point held the largest share of the smallest company on the list, Austin-based mutual fund advising firm Dimensional Fund Advisors held the largest stake across the top 10 small caps with close to $4 million worth of shares in five companies on the list (it wasn't always the largest shareholder).

In aggregate, the top 10 list returned 66.67%, four and a half times more thant the S&P SmallCap 600 (INDEXSP:SP600) which has a total return of 14.86%, year-to-date. Returns ranged from a high of 63.64% for bank holding company Ameriana Bancorp (NASDAQ:ASBI) to a low of -42.74% for Torch Energy Trust. 

To form the initial list, we used Google Finance Stock Screener and the Google Finance quote pages for the current market cap. Because of delays in updating the screener by Google, the original list had Kingstone Companies (NASDAQ:KINS) listed as being over 13% institutionally held. However, when we checked the Nasdaq stock screener, insitutional holdings for that stock had fallen to 0.35% (the Nasdaq screener contained data through the second quarter). We also used Insider Cow to double check institutional holdings. This list excludes ETFs, which will be the subject of a separate article.

10 Smallest Cap Stocks With Largest Insitutional Holders

Torch Energy Royalty Trust 
Market cap: $11.61 mill
Institutional percent held: 62.40%
52 week price change: -42.74%
Holders: 5
Largest Holder: Silver Point Capital with 5.365 million shares worth $7.243 million
Share price $1.35

CSP Inc. (NASDAQ:CSPI)
Market cap: $16.29m
Institutional percent held: 31.94%
52 week price change: +35.81%
Holders: 9
Largest Holder: Dimensional Fund Advisors with 293,340 shares worth $1.417 million
Share price: $4.83

Ameriana Bancorp 
Market cap: $18.68m
Institutional percent held: 25.45%
52 week price change: +63.64%
Holders: 15
Largest Holder: Jeffrey L. Gendell wtih 279,065 shares worth $1.799 million
Share price: $6.45

Air T, Inc (NASDAQ:AIRT)
Market cap: $20.79m
Institutional percent held: 25.36%
52 week price change: +10.82%
Holders: 14
Largest Holder: FMR LLC with 244,600 shares worth $2.079 million
Share price: $8.50

Educational Development Corporation (NASDAQ:EDUC)
Market cap: $15.71m
Institutional percent held: 19.29%
52 week price change: -29.14%
Holders: 7
Largest Holder: FMR LLC with 386,892 shares worth $947,568
Share price: $4.00

Chicago Rivet & Machine Co (NYSEAMEX:CVR)
Market cap: $17.87m
Institutional percent held: 17.28%
52 week price change: +12.94%
Holders: 11
Largest holder: Dimensional Fund Advisors LP with 77,936 shares worth $1.441 million
Share price: $18.50

Servtronics (NYSEAMEX:SVT)
Market cap: $21.40m
Institutional percent held: 16.02%
52 week price change: +5.53%
Holders: 14
Largest Holder: Dimensional Fund Advisors LP with 85,678 shares worth $769,388
Share price: $8.98

WVS Financial (NYSEAMEX:WVFC)
Market cap: $17.49m
Institutional percent held: 15.71%
52 week price change: -3.85%
Holders: 10
Largest holder: Rodger Brothers Inc with 205,536 shares worth $1.747 million
Share price: $8.50

First West Virginia Bancorp (NYSEAMEX:FWV)
Market cap: $26.97m
Institutional percent held: 14.22%
52 week price change: +18.69%
Holders: 8
Largest holder: Wellington Management Co with 163,629 shares worth $179,949
Share price: $16.32

Electro-Sensors (NASDAQ:ELSE)
Market cap: $13.23m
Institutional percent held: 13.71%
52 week price change: +7.91%
Holders: 6
Largest holder: Whitebox Advisors with 48,204 shares worth $187,995
Share price $3.90
No positions in stocks mentioned.