In this article, we discuss the 10 best stocks under $20 according to Jim Simons’ Renaissance Technologies. If you want to skip our detailed analysis of these stocks, go directly to 5 Best Stocks Under $20 According to Jim Simons’ Fund.
Jim Simons is an American billionaire hedge fund manager and award-winning mathematician who founded Renaissance Technologies in 1982, which is a New York-based quantitative hedge fund. As a mathematician, Simons’ investment philosophy is based on finding patterns, algorithms, and mathematical models which would gain from market inefficiencies, using automated programs to predict and assess price changes in financial assets.
Simons completed his Bachelor’s from Massachusetts Institute of Technology in 1958, and pursued a PhD in mathematics from the University of California, Berkeley. Simons’ Renaissance Technologies is known for its two flagship funds, namely the Medallion Fund and Renaissance Institutional Equities Fund. The Medallion Fund stopped accepting outside investors in 1993, and the stakeholders include current and past employees of Renaissance Technologies and their families. The Medallion Fund is considered to be extremely successful, gaining 76% during 2020.
Renaissance Technologies’ portfolio is valued at over $77 billion according to the Q3 13F filings, with a top ten holdings concentration of 12.38%. Jim Simons retired from the hedge fund in 2010, but still remains the non-executive chairman, while Peter Brown is the current CEO of Renaissance Technologies.
The Q3 portfolio of Jim Simons’ fund is focused on investments in the information technology, industrials, healthcare, consumer staples, communications, and consumer discretionary sectors. In Q3 2021, Renaissance Technologies purchased 665 new stocks, sold out of 657 securities, made additional purchases in 934 equities, and reduced holdings in 1804 companies. The top buys of the hedge fund included Adobe Inc. (NASDAQ:ADBE), Tesla, Inc. (NASDAQ:TSLA), and NIKE, Inc. (NYSE:NKE), whereas the fund reduced holdings in Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Roku, Inc. (NASDAQ:ROKU), among others. In addition to investing in blue chip stocks, Renaissance Technologies holds a significant share of undervalued and affordable stocks as well.
Jim Simons of Renaissance Technologies
The most notable stocks from Renaissance Technologies’ Q3 portfolio include Microsoft Corporation (NASDAQ:MSFT), Zoom Video Communications, Inc. (NASDAQ:ZM), Moderna, Inc. (NASDAQ:MRNA), and Alphabet Inc. (NASDAQ:GOOG), among others discussed in detail below.
Our Methodology
We used the Q3 portfolio of Jim Simons’ Renaissance Technologies to select the 10 best stocks under $20. The stocks are ranked according to the hedge fund’s stake value in each holding.
We have mentioned earnings from the third quarter, analyst ratings, and the hedge fund sentiment around each stock for additional context on the companies. The hedge fund sentiment was gauged from the Q3 database of Insider Monkey which tracks the movement of 867 elite funds.
Best Stocks Under $20 According to Jim Simons’ Fund
10. American Airlines Group Inc. (NASDAQ:AAL)
Renaissance Technologies’ Stake Value: $106,947,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 30
Share Price as of December 7: $18.14
American Airlines Group Inc. (NASDAQ:AAL) is the largest American airline when measured against metrics like fleet size, passengers carried, and revenue passenger mile. Jim Simons’ Renaissance Technologies holds 5.21 million shares in American Airlines Group Inc. (NASDAQ:AAL) as of Q3 2021, worth approximately $107 million, representing 0.13% of the fund’s total investments.
Of the 30 hedge funds that were long American Airlines Group Inc. (NASDAQ:AAL) in the third quarter, John Overdeck and David Siegel’s Two Sigma Advisors is one of the leading stakeholders of the company, with over 8 million shares worth $164.44 million.
On October 21, American Airlines Group Inc. (NASDAQ:AAL) announced its Q3 results, posting an EPS of -$0.95, beating estimates by $0.08. The quarterly revenue equaled $8.97 billion, up almost 183% year-over-year, exceeding estimates by $48.78 million.
Evercore ISI analyst Duane Pfennigwerth on December 6 upgraded American Airlines Group Inc. (NASDAQ:AAL) to In Line from Underperform with a $17 price target, citing that the airline industry is set to recover from the COVID-19 pandemic lows.
In addition to Microsoft Corporation (NASDAQ:MSFT), Zoom Video Communications, Inc. (NASDAQ:ZM), Moderna, Inc. (NASDAQ:MRNA), and Alphabet Inc. (NASDAQ:GOOG), American Airlines Group Inc. (NASDAQ:AAL) is a notable stock from the Q3 portfolio of Jim Simons’ Renaissance Technologies.
9. Vector Group Ltd. (NYSE:VGR)
Renaissance Technologies’ Stake Value: $111,001,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 18
Share Price as of December 7: $15.73
At the end of September this year, Renaissance Technologies held 8.70 million shares in Vector Group Ltd. (NYSE:VGR), worth $111 million, representing 0.14% of the fund’s total Q3 portfolio. Vector Group Ltd. (NYSE:VGR) is a company offering high quality tobacco products to the US markets via its subsidiaries and is one of the best stocks under $20 according to Jim Simons’ fund.
Barclays analyst Gaurav Jain upgraded Vector Group Ltd. (NYSE:VGR) to Equal Weight from Underweight with a price target of $17, up from $13 on November 15.
Renaissance Technologies is the leading stakeholder of Vector Group Ltd. (NYSE:VGR), followed by Arrowstreet Capital holding a $15.1 million position in the company in Q3 2021. Overall, 18 hedge funds were bullish on Vector Group Ltd. (NYSE:VGR) in the third quarter, up from 14 funds in the prior quarter.
Vector Group Ltd. (NYSE:VGR) posted its Q3 results on November 8. EPS for the quarter totaled $0.34, missing estimates by -$0.05. The $652.65 million revenue outperformed estimates by $846,000.
8. Hello Group Inc. (NASDAQ:MOMO)
Renaissance Technologies’ Stake Value: $113,993,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 18
Share Price as of December 7: $10.02
Hello Group Inc. (NASDAQ:MOMO) is a California-based media and entertainment company that was originally founded to focus on music management and social media management, but its operations eventually expanded to include TV and film production, digital content distribution, publishing, and live touring.
Jim Simons’ fund holds 10.77 million shares in Hello Group Inc. (NASDAQ:MOMO) as of Q3 2021, worth roughly $114 million, making Hello Group Inc. (NASDAQ:MOMO) one of the best stocks under $20 according to Renaissance Technologies. The stock accounts for 0.14% of the total Q3 investments of the hedge fund.
On November 30, Hello Group Inc. (NASDAQ:MOMO) posted its Q3 earnings, announcing an EPS of $0.42, exceeding estimates by $0.11. The quarterly revenue amounted to $590.61 million, up 3.05% year-over-year, outperforming estimates by $15.21 million.
Citi analyst Brian Dapeng Gong downgraded Hello Group Inc. (NASDAQ:MOMO) to Neutral from Buy with a price target of $13.60, down from $18, observing that the stock has limited potential of turning around, but cheap valuation and strong cash position could provide support for Hello Group Inc. (NASDAQ:MOMO).
At the end of September this year, 18 funds in the database of 867 elite funds monitored by Insider Monkey reported owning stakes in Hello Group Inc. (NASDAQ:MOMO), amounting to $170.6 million, down from 24 funds being bullish on the stock in the preceding quarter, holding total stakes valued at $305.5 million.
7. B2Gold Corp. (NYSE:BTG)
Renaissance Technologies’ Stake Value: $115,289,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 16
Share Price as of December 7: $3.78
B2Gold Corp. (NYSE:BTG), priced at $3.78 on December 7, is one of the best stocks under $20 according to Jim Simons’ Renaissance Technologies, with the hedge fund holding 33.71 million shares of B2Gold Corp. (NYSE:BTG), worth $115.28 million, representing 0.14% of its total Q3 portfolio. B2Gold Corp. (NYSE:BTG) is a low cost Canadian mining company that owns and operates gold mines located in Mali, Namibia, and the Philippines.
B2Gold Corp. (NYSE:BTG) announced on November 2 earnings for Q3, posting an EPS of $0.12, missing estimates by -$0.01. Revenue for the quarter totaled $510.86 million, up 4.90% from the prior-year quarter, exceeding estimated revenue by $1.92 million.
Scotiabank analyst Ovais Habib lowered the price target on B2Gold Corp. (NYSE:BTG) on October 5 to C$9 from C$9.50 and kept an Outperform rating on the shares.
At the end of the third quarter of 2021, 16 hedge funds in Insider Monkey’s database of elite funds were bullish on B2Gold Corp. (NYSE:BTG), with total stakes equaling $170.6 million. This is compared to 15 funds being long B2Gold Corp. (NYSE:BTG) in the preceding quarter, holding stakes worth $251.3 million.
One of the leading B2Gold Corp. (NYSE:BTG) stakeholders from Q3 is First Eagle Capital Management, holding 19.56 million shares valued at $66.8 million.
6. Kinross Gold Corporation (NYSE:KGC)
Renaissance Technologies’ Stake Value: $176,178,000
Percentage of Renaissance Technologies’ 13F Portfolio: 0.22%
Number of Hedge Fund Holders: 27
Share Price as of December 7: $5.97
Jim Simons’ fund increased its stake in Kinross Gold Corporation (NYSE:KGC) by 6% in the third quarter, holding 32.86 million shares worth $176.1 million, representing 0.22% of the total Q3 portfolio. Kinross Gold Corporation (NYSE:KGC) is a gold and silver mining Canadian company that is operating seven active gold mines currently.
On November 10, Kinross Gold Corporation (NYSE:KGC) announced earnings for the third quarter, posting an EPS of $0.07, beating estimates by $0.02. Revenue in the quarter totaled $862.5 million, down 23.76% as compared to the preceding year quarter, missing estimates by $40.29 million.
Sprott Asset Management holds over 9 million shares of the company, valued at $48.26 million as of September this year, making it one of the leading stakeholders of Kinross Gold Corporation (NYSE:KGC). Overall, 27 hedge funds tracked by Insider Monkey reported owning stakes in Kinross Gold Corporation (NYSE:KGC), valued at $321 million in Q3 2021. This is comparable to 28 funds being bullish on the stock in the prior quarter, with total stakes amounting to $360.2 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Zoom Video Communications, Inc. (NASDAQ:ZM), Moderna, Inc. (NASDAQ:MRNA), and Alphabet Inc. (NASDAQ:GOOG), Kinross Gold Corporation (NYSE:KGC) is a notable stock from the Q3 portfolio of Jim Simons’ Renaissance Technologies.
Click to continue reading and see 5 Best Stocks Under $20 According to Jim Simons’ Fund.
Suggested articles:
- 10 Stocks to Buy Under $50 According to Brian Higgins’ King Street Capital
- Dividend Stock Portfolio: 10 Stock Picks By Hedge Funds
- 11 Best Genomic Stocks to Buy Now
Disclosure: None. 10 Best Stocks Under $20 According to Jim Simons’ Fund is originally published on Insider Monkey.
