Insitutional Ownership Will "Continue" To Increase
The gains and consistent stock price for NBS is not being driven by the fickle retail investor of the last two years. These gains and the fact that NBS is significantly more valuable today than last year is all a result of the reverse split that took place last year.
At this time last year NeoStem traded at $0.60, meaning it was not eligible for fund inclusion, it was being removed from Russell index funds, and let's not forget that there are millions of investors who won't even look at a stock trading below $1.
Now, NeoStem is at $7 with a market capitalization that qualifies it for most large index funds. As funds rebalance in the next couple months NeoStem's stock will go higher, and its institutional ownership will soar, which in turn means less downside volatility.
You're absolutely right.... If you look at stocks to be included in Russell index funds at any given year followed by their three month stock price, almost all outperform the market. Also, Russell is just one of the funds that may include NBS. There is a long line.