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Kennedy's investment strategy is to ride the momentum of usually small- or micro-cap stocks that break to a new significant high and then continue to put in new highs over the next six-week period.
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What this means is that investors stand the best chance of participating in this renewed merger and acquisition cycle by investing in small to midsize companies, or micro, small-cap and mid-cap mutual funds run by investment managers with a value approach.
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But if a fund focused on small-cap or micro-cap stocks were to manage billions of dollars, given the lesser degree of liquidity for these smaller stocks, that would be problematic.
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