A former journalist who worked his way up to become one of Wall Street’s best tiny-company stock pickers tells us the 4 pillars of the approach that’s beating 98% of his competitors

• Darren Chervitz has become one of the best mutual fund managers focusing on small companies, bringing in annual returns of more than 40% while buying smaller stocks than his peers.
• He says he adopts an inquisitive approach based on his earlier career as a journalist covering the stock market.
• Chervitz told Business Insider about the bedrock of his approach and several stocks where it’s paying off.

Companies probably shouldn’t accuse their own investors of betting against the stock they’ve bought. Darren Chervitz has been on the wrong end of that accusation a few times, but he says he doesn’t mind.

Tough questions are part of how the former journalist separates must-have stocks from the ones he’ll pass on, and at times, that’s brought out comments about how he must be a short-seller or a frustrated ex-investor.

“We’re proud of it. We’re inquisitive, we’re skeptical,” he says of that approach. “We’re passionate about what we do and the companies in which we invest.”