Yale professor, author, and investment manager Roger Ibbotson says that investors can score some strong gains by focusing on stocks that are less liquid. Ibbotson tells Morningstar that buying less liquid stocks involves “getting away from the exciting, hot-traded stocks that you might hear on the news all the time, and buying the other overlooked parts of the stock market, the less-popular parts of the stock market. … In fact, those are where you will get the higher returns.” He says stocks trading at a “liquidity premium” can be found among large caps, mid-caps, small caps, and micro caps. “You find big differences in how they are valued, and we can even observe it as trading volume goes up in a stock, we can just see these valuations soar up,” he says. “And some of that … that’s some of the ways we actually get returns by, in fact, as the trading volume goes up, the valuations go up, and then we can actually realize the returns on these stocks.”