The so-called “Big Seven” were among the hottest stocks last year, but wealth managers say they are “significantly overvalued” and are looking elsewhere. “It's possible that the Big Seven will continue to grow and generate positive returns for investors over the next decade, but I don't think that will be the case for all companies,” said Tariq Dennison, co-founder and investment advisor at GFM. Asset Management told CNBC on July 19 Pro said. “I believe the recent relative outperformance of the Big Seven is largely due to institutional inflows into large-cap stocks, fueling a cycle of upward momentum,” Denison said, adding that several of the stocks were “excessively valued.” high”. He said he is now betting on lesser-known companies in “hard-to-reach corners of the market.” How to invest in U.S. small-cap stocks In the U.S., investors have been favoring small-cap stocks as the Russell 2000 index gradually fell back after rising sharply last week. The benchmark has gained 8.5% so far this year. In comparison, the S&P 500 rose 15.4% and the Nasdaq 100 gained 24.4%. Dennison said he is investing in small-cap stocks through exchange-traded funds such as the DFA Dimensional US Small Cap Value ETF and the Avantis US Small Cap Value ETF. “These ETFs will be my starting point, and I will look for single-name companies in these ETFs,” he said. DFA's major holdings include Abercrombie & Fitch, Cadence Bank and Commercial Metals. Avantis' top holdings include KB Home, Jackson Financial and Warrior Met Coal. 'A shopper's paradise' Elsewhere, the wealth manager said he was eyeing markets such as China that have fallen out of favor. Although China only has a 2.5% weighting in the MSCI All Country World Index, Denison is overweight the market because it is “so cheap and has more upside than downside.” One way he participates in the market is through Hong Kong-listed stocks, which he says are “very cheaply valued.” “Hong Kong is a shopper's paradise and there are a lot of good names there,” he said, naming jewelry chain Chow Tai Fook, public transport operator and property developer MTR Corporation and technology giant Tencent as his “top three holdings in Hong Kong” ”. Tencent has been making headlines recently, with several analysts bullish on the stock, including Goldman Sachs, which has the stock on its investment list. These three stocks also trade as American Depository Receipts (ADRs). Other global stocks Denison is betting on include German healthcare company Fresenius Medical Care and Kazakh-based uranium producer Kazatomprom. “I've been accumulating shares in both companies for a while,” said the wealth manager, who manages nearly $100 million. “Kazatomprom is a name we used to buy a lot of when it was cheap. It's not that cheap anymore, but I still find it to be an excellent and special company,” he said, adding that he probably wouldn't be “so aggressive about it.” “Buy it, right now. Kazatomprom is dual-listed on the Kazakh and London stock exchanges and trades as an ADR in the United States. “It leads in many pension portfolios and is a value stock due to the strength of the Swiss franc ,”He said. Value stocks are generally cheaper than so-called growth stocks and often trade at a discount to what a company's performance would suggest. Denison added that he would continue to increase his position in Nestlé as long as its average share price remains below 100 Swiss francs ($112.48) per share. Nestlé, whose shares trade on Switzerland's six major exchanges and are listed in the United States as American depositary receipts, has fallen about 3.1% year-to-date to 94.50 Swiss francs per share. Of the 22 analysts covering the stock, 12 have buy or overweight ratings, eight have hold ratings and two have sell ratings, according to FactSet data. The average price target for the stock is CHF 106.15, implying an upside of 12.3%.