"NEW YORK, Feb 8 (Reuters) - 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."