For the more aggressive investor, the Tiny Titans screen searches for cheap micro-cap stocks with upward price momentum. O'Shaughnessy believes there are many advantages to investing in micro-cap stocks. Few analysts cover these small stocks and this lack of coverage leaves much room for upside potential when good stocks are largely unnoticed.
Additionally, micro-cap stocks have a low correlation with other market capitalization strategies, including the S&P 500, which is comprised mainly of mid- and large-cap stocks. This means that the performance of the S&P 500 has a smaller impact on the performance of micro-cap stocks. For example, when the overall market (as measured by the S&P 500) is in a slump, a portfolio of micro-cap stocks is more likely to perform better. These tiny stocks, however, are highly volatile and best suited for investors who can handle the dramatic swings that a portfolio of these stocks will produce.