US SMALL/MIDCAPS-Dimensional’s stakes boost homebuilders

By Chuck Mikolajczak

NEW YORK, Feb 8 (BestGrowthStock) – Several homebuilders, along
with a number of other small cap stocks rose on Monday, after
an investment firm disclosed it had bought stakes in a host of
companies, including Standard Pacific Corp and Beazer Homes.

Dimensional Fund Advisors, which manages more than $164
billion, reported a 6.5 percent stake in Beazer Homes USA Inc
(BZH.N: ) and a 5.1 percent in Standard Pacific Corp (SPF.N: ). For
details, see ID:nN08198926]

Beazer shares gained 5.8 percent to $4.40 while Standard
Pacific rose 5 percent to $3.82.

Dimensional, which is based in Austin, Texas, and counts
Nobel laureates Myron Scholes and Robert Merton among its
directors, also disclosed a 4.8 percent stake in Meritage Homes
Corp (MTH.N: ). Meritage shares rose 2.2 percent to $21.59.

“Certainly, any time you get large stakes by a major
institutional investor, it’s going to move the price up,” said
Rick Campagna, portfolio manager with 300 North Capital LLC in
Pasadena, California.

“And by nature of their size – both Dimensional Fund’s size
and the market cap size of these smallcaps they end up taking
what amounts to be large positions.”

After falling more than 12 percent on Friday following
disappointing results, Brooks Automation Inc (BRKS.O: ) advanced
4.8 percent to $7.85 after Dimensional disclosed an 8.3 percent
stake in the diversified manufacturer. Officials at Dimensional
did not respond to a call seeking comment.

Despite the lift from the disclosures, the S&P MidCap 400
index (.MID: ) was down 0.2 percent while the S&P SmallCap 600
index (.SML: ) shed 0.5 percent. In comparison, the benchmark S&P
500 index (.SPX: ) dipped 0.3 percent.

Investment Analysis

(Editing by Theodore d’Afflisio)

US SMALL/MIDCAPS-Dimensional’s stakes boost homebuilders