Large capitalization stocks should beat small cap stocks next year, they said.

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"Soviero's unique mid-cap fund has proven to be a valuable way to capitalize on this capitalization's range's overlooked and most promising companies, " Lowell says.

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Thus, small capitalization stocks in the past year have done substantially better than their large cap counterparts.

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But the reasons behind other heavily-shorted stocks on the top ten list, banking software company Temenos with 20.4% of its market capitalization on loan, Capgemini, with 17.5% of its market cap on loan, and Axa with 14.1% of its outstanding shares on loan, is harder to decipher.

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Meanwhile, small-capitalization stocks have run up 36% since early October, pushing the Russell 2000 small-cap index to within 4% of the all-time high that it hit last April.

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