The same institutional investors keep showing up among the largest holders in most of the basket of 7-10 stocks I own. Renaissance, Perritt, Al Frank, Dimensional and Heartland. I can only assume they concentrate on the same measures I do: EV/Free Cash Flow, EV/Revs., EV/EBITDA. Then at the next level I look for companies w/niche exposure and strong (#1 or #2) market share within that niche. Finally I look for a balance that is either showing net cash, or in the process of de-leveraging via free cash flow application.

The result is often a small cap, low float niche play that happens to be a low cost producer in the market it serves. Often it is a temporarily depressed value play on the curve to becoming a GARP story. Still trying to figure out North Star Investment's bias in owning ROAC--they usually don't show up owning the stocks I own, but they own ROAC in a big way.