A number of smart money managers are betting that 2011with be the year that large cap stocks -- those with a market capitalization over $10 billion -- outperform the market. The reason? Small caps, which have a market capitalization below $2 billion, and mid cap stocks, with market caps between $2 billion and $10 billion, almost doubled the returns of S&P 500 in 2010, rising 27%. Large caps, on the other hand, were up only about 15% so they seem relatively cheap.

But Hilary Kramer, editor of GameChangerStocks.com, says not to be so quick to give up on small caps. In fact, she says that they will do very well this year. In the short video above, Kramer explains that small caps, which were destroyed during the credit crisis, should do well. She says that many could benefit by being acquired by larger companies such as Qualcomm's (QCOM) recent announcement that it will acquire Atheros (ATHR). In the video, Kramer gives a number of small cap stock recommendations. Among her picks: the publisher of yellow and white pages in print and online, Supermedia (SPMD).

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lisak1960

We are doing exactly what has been done in Socialist Mexico. They have "The richest man in the world", they are the largest producer of silver in the world, and they have lots of oil, yet the average Mexican lives in poverty, making less than six dollars a day. That is what our evil, ultra rich TV and Movie Stars want here. It gives them all of the power and wealth. And the poor duped Democrats will never figure out what hit them until it is too late. Brilliant.

January 14 2011 at 4:36 AM Report abuse +2 rate up rate down Reply
Muzzled

watch PLUG up 20% today

January 13 2011 at 3:29 PM Report abuse rate up rate down Reply
Robert & Lisa

With this group of out of control big spenders does anyone really believe stocks not precious metals will outperform anything? And as the bickering goes on, evil, ultra rich men like George Soros are laughing all the way to their gold filled vaults. Have any of you ever wondered why the evil, rich elite and the uninformed poor people generally vote for the Demoncrats, while the working middle class overwhelmly votes Conservative?

January 13 2011 at 2:21 PM Report abuse +2 rate up rate down Reply
2 replies to Robert & Lisa's comment
Lynn

Please give me a friggin break on "out of control spending". How would any elected official, regardless of party affiliation, react to the financial crisis of 2008? Just turn your head to some of the world's major money institutions ... Aig, Merrill Lynch, Bank of America, Citibank, General Motors etc. etc. Guess what? Reorganization was not an opton!!! BAILOUTS CAUSE DEBT, THIS JUST IN!!!! I would not be surprised if some of the so called reckless spending probably helped to juice your portfolio a tad,Robert& Lisa

January 13 2011 at 9:01 PM Report abuse -2 rate up rate down Reply
Robert & Lisa

Yes Lynn, let the poor business people go out of business. The good business people will take over and run those companies efficiently, creating more wealth for all to enjoy.

January 14 2011 at 5:04 AM Report abuse +1 rate up rate down Reply
gardeningatnite

Small cap stocks are those with market capitalizations of less than $2 billion...... This group has been better at protecting itself from the deteriorating global conditions as well as the rising dollar. It is widely believed that since most of these companies do their business domestically, they don't need to rely on inexpensive currency to drive their businesses......Buy American!

January 13 2011 at 11:13 AM Report abuse rate up rate down Reply
gardeningatnite

Large-caps were up 15% and small and mid caps were up 27%....Wow!

January 13 2011 at 11:10 AM Report abuse +1 rate up rate down Reply
1 reply to gardeningatnite's comment
Robert & Lisa

And inflation will be up 50%.

January 13 2011 at 2:21 PM Report abuse +1 rate up rate down Reply
gardeningatnite

It was darkest for the large caps just before the dawn, for the sun has shone brightly upon them since 1983.........The small caps reputation was made largely during the 1973...1983 decade....innovation and small, good for america!

January 13 2011 at 11:04 AM Report abuse +1 rate up rate down Reply
gardeningatnite

One of the biggest advantages of investing in small-cap stocks is the opportunity to beat institutional investors....Because mutual funds have restrictions that limit them from buying large portions of any (small) company's outstanding shares...some mutual funds would not be able to give the small cap a meaningful position in the fund...

January 13 2011 at 10:27 AM Report abuse +2 rate up rate down Reply
gardeningatnite

Small Cap stocks are companies with a relatively small market capitalization.....The definition of small cap can vary among brokerages, but generally it is a company with a market capitalization of between $300 million and $2 billion.

January 13 2011 at 10:23 AM Report abuse +2 rate up rate down Reply
gardeningatnite

Innovation, technology, small business, America's future......small cap stocks!...Small Cap companies will add employees as the company does well.....perhaps, sell to a mid-cap (larger company), which will in turn sell to a corporate conglomerant; which will naturally shelve the project and put it in the closet......once again, costing americans jobs and our futures!

January 13 2011 at 9:55 AM Report abuse rate up rate down Reply
1 reply to gardeningatnite's comment
gardeningatnite

If I am not mistaking we voted that administration out in 2008?...Ex-president Cheney was not very good with numbers, you know?

January 13 2011 at 10:13 AM Report abuse +1 rate up rate down Reply
gardeningatnite

Corporate america can only increase profits, by destroying the 'middle class' of america.........naturally small-caps should do better!

January 12 2011 at 7:34 PM Report abuse -3 rate up rate down Reply
1 reply to gardeningatnite's comment
savemycountry911

So why are libs trying to destroy the middle class?

January 12 2011 at 9:47 PM Report abuse +2 rate up rate down Reply