Which small caps Buffett, Gates, and Ackman are betting on

Alongside well known public companies, large investors also hold small positions in businesses with market capitalization of up to $2 billion. As a rule, these are targeted investments in infrastructure, real assets, or undervalued companies that have yet to attract broad market attention. Analyst Aldiyar Anuarbekov reviewed, for Oninvest, which small caps leading investment figures are backing.

Berkshire Hathaway’s portfolio is primarily composed of large, stable companies. However, it also includes small-cap stocks, according to the firm’s Form 13F quarterly report as of September 30, 2025.

Liberty Latin America

Liberty Latin America (tickers LILA and LILAK) is a telecommunications operator focused on the Caribbean and Central America. Berkshire Hathaway’s portfolio includes 2.6 million shares of LILA and 1.2 million shares of LILAK. At a share price of about $7, the total value of the stake is roughly $32.6 million.

The company relies on the sale of bundled service packages, combining home internet and mobile services under a single bill, and is also expanding offerings for corporate clients. Additional value is generated by Liberty Networks, the group’s infrastructure division.

Benchmark in early November maintained its “buy” recommendation on LILA shares and raised its target price to $13 per share from $12. This implies nearly a doubling versus the current share price. The valuation is based on a multiple of about 7x projected 2026 adjusted operating earnings. According to MarketWatch data, two Wall Street analysts rate the stock “buy,” while two assign a “hold” rating. The average target price is $10.98 per share.

Atlanta Braves Holdings

Atlanta Braves Holdings (BATRK) owns the MLB baseball club Atlanta Braves and the associated mixed use real estate project The Battery Atlanta. Berkshire Hathaway’s portfolio includes about 223,600 shares of Atlanta Braves Holdings, valued at approximately $9.3 million, against a total company market capitalization of roughly $2.6 billion.

Analysts at SADIF consider the shares undervalued based on current multiples. Their “buy” recommendation and $61.58 per share target price imply upside of about 40%. At the same time, the analysts point to the company’s elevated debt load, while noting that improving operating metrics and an experienced management team partially offset this risk. According to MarketWatch data, the stock has three “buy” ratings and two “hold” ratings from Wall Street analysts. The average target price is $58.40 per share.

Schrödinger

The Bill & Melinda Gates Foundation Trust owns about 6.98 million shares of Schrödinger (SDGR). Schrödinger operates at the intersection of software and biotech, developing a computational platform that helps pharmaceutical companies identify and select promising drug candidates in silico before proceeding to costly laboratory and clinical work. For the foundation, this small-cap position represents a long-term bet on the digitalization of pharmaceuticals and scientific research, where commercial impact may take time to materialize but could be significant over the long run.

Schrödinger shares remain 88% below their 2021 peak of $116 per share, and the fund appears to have used the drawdown to enter a long-term growth business at a cheaper valuation. Late last year, the company announced a strategic shift: beginning in 2026, Schrödinger will prioritize software scaling and clinical development partnerships rather than self funding capital intensive trials. Under this model, the share of recurring license revenue increases while costs decline.

Investment banks have responded positively. TD Cowen reiterated its “buy” rating with a $24 per share target price. Analysts expect the pivot toward a partner model to accelerate growth and move the company closer to breakeven. The stock has seven “buy” ratings versus three “hold” ratings, with an average target price of $25 per share, implying upside of more than 70%.

Ron Baron is a well-known growth investor and founder of Baron Capital, which manages a widely diversified portfolio of roughly 330 stocks with total assets of about $37.7 billion. His approach is centered on small and mid sized companies with high growth potential, held over multiyear horizons.

Baron Capital’s funds significantly refreshed their portfolios in the third quarter of 2025, adding several new positions. Among them, Ramaco Resources (METC) and Via Transportation (VIA) stand out.

Ramaco Resources

Ramaco Resources produces metallurgical coal for the steel industry and is also developing rare earth materials. The investment thesis reflects exposure to the commodity cycle and industrial recovery, supported by higher infrastructure spending and improving steel demand.

Jefferies in January upgraded Ramaco Resources shares from “hold” to “buy,” while lowering its target price by 9% to $30 per share. The new target implies upside of nearly 50% versus the close on Thursday, January 29. The stock has seven “buy” and “overweight” ratings, one “hold” rating, and one “sell” rating. The average target price is $36.40 per share.

Via Transportation

Via Transportation develops software for on demand transit systems, providing digital solutions for buses, shuttles, and corporate transportation fleets. Its platform helps operators optimize routes, schedules, and vehicle utilization, reducing costs and improving efficiency.

Guggenheim reiterated a “buy” rating on Via with a $58 per share target price. Analysts highlight the acquisition of Downtowner as strategically sound, noting that it expands Via’s addressable market by about $2 billion to roughly $84 billion. According to MarketWatch data, the stock has 11 “buy” and “overweight” ratings. The average target price is $47 per share, implying upside of nearly 97%.

Bill Ackman's Pershing Square is known for its concentrated portfolio and active involvement in portfolio companies. The fund reports two notable positions in the small-cap segment.

Seaport Entertainment Group

Seaport Entertainment Group (SEG) was spun off from Howard Hughes Holdings in 2024. The company owns entertainment and development assets like the historic South Street Seaport district in Lower Manhattan, the 250 Water Street development project, and Las Vegas sports venues such as Las Vegas Ballpark and the Las Vegas Aviators baseball club. According to its Form 13F report, Pershing Square owns 5 million shares of Seaport Entertainment valued at about $115 million, consistent with Ackman’s concentrated investment style.

Seaport Entertainment is positioned around unique locations with strong visitor traffic. Pershing Square received its stake following an increase in its ownership of Howard Hughes, which the fund controls, and Ackman appears to expect gradual value realization as the assets operate independently.

For now, Seaport Entertainment remains largely off the radar for the broader market. However, Pershing Square’s involvement signals confidence in the long-term value of the company’s properties and brands. In November, Jones Trading initiated coverage with a “buy” rating and a $30 per share target price, implying upside of about 55%. This remains the only Wall Street analyst rating on the stock.

Hertz Global Holdings

Hertz Global Holdings (HTZ) is one of the most recognizable brands in the car rental industry. Pershing Square owns 15.24 million shares valued at about $103.6 million.

Hertz emerged from bankruptcy in 2021 and became a bet on the recovery of the travel sector. The investment thesis rests on the company’s scale and its ability to generate substantial cash flow as travel demand normalizes.

By the end of 2025, however, risks had intensified. In December, the U.S. Supreme Court declined to hear an appeal related to a ruling requiring Hertz to pay $272 million in debt obligations. The payment will likely be made in a lump sum in 2026, potentially as early as the first quarter. Despite adequate liquidity following a convertible bond offering, the expected cash outflow has raised analyst concerns.

In January 2026, Barclays downgraded its view on Hertz, assigning an “underweight” rating and a $3 per share target price, implying downside of nearly 50%. Barclays cited liquidity pressures and leverage as key risks. The stock currently carries six “hold” ratings and three “sell” ratings, with an average target price of $4.86 per share.

Ken Fisher oversees one of Wall Street’s most diversified portfolios, with more than 1,000 positions valued at approximately $276 billion as of September 30, 2026. Fisher Asset Management implements a global strategy focused on long-term growth by companies of all sizes.

Against this backdrop, small-cap additions play only a marginal role. In the third quarter, Arbor Realty Trust (ABR) and Biote Corp. (BTMD) appeared in the portfolio.

Arbor Realty Trust

Arbor Realty Trust is a mortgage REIT focused on financing residential real estate, including multifamily properties and rental loans. Fisher acquired about 10,000 shares valued at roughly $122,000. While small in size, the position stands out due to the company’s dividend yield of about 11.8% per annum.

After strong growth in 2022 and 2023 driven by rental market strength, the business slowed amid higher rates and reduced transaction activity. In early 2026, At the beginning of 2026, analysts at SADIF turned more cautious on Arbor Realty Trust, citing weaker earnings visibility, pressure on EPS, and reduced deal activity amid higher rates.

Even so, the company’s financial position remains stable, and the management continues to seek new growth niches. Despite the cautious market sentiment, a company with a double-digit dividend yield can still be attractive for a large fund. By adding Arbor Realty to the portfolio, Fisher may be betting that current pessimism is overstated and that, as rates stabilize, the stock can deliver both dividend income and price recovery. According to MarketWatch data, the stock has one “buy” rating, one “hold” rating, and three “sell” ratings. The average target price is $8.88 per share, implying upside of about 12.7%.

Biote Corp.

Biote Corp. (BTMD) is a micro-cap company with a market capitalization of about $1 million. Fisher Asset Management holds approximately 10,000 shares valued at about $30,000. Biote operates a network of clinics and partner practices providing hormone therapy and quality of life treatments for menopause and andropause, primarily through a franchise model.

The company went public in 2022 via a SPAC transaction, after which its shares declined as investors remained skeptical of small healthcare startups. Biote’s presence in Fisher’s portfolio reflects the firm’s highly diversified approach, where even small positions provide optionality on niche growth stories.

Biote represents exposure to a demographic trend driven by aging populations and rising demand for longevity related treatments. In the third quarter, revenue declined 6.7% year over year to $48 million, while margins remained strong: gross margin was 71.8%, adjusted EBITDA was $12.9 million, or 26.9% of revenue, and net income reached $9.2 million. The management reiterated 2025 guidance calling for revenue above $190 million and adjusted EBITDA of $50 million, and announced a share repurchase program covering about 1 million shares.

TD Cowen rates the stock “buy” with a $3 per share target price, implying upside of about 43.5%. The stock has four “buy” ratings and one “hold” rating, with an average target price of $4.20 per share.