Billionaire Jim Simons’ Cheap Stock Picks Include Apple Inc. (AAPL)

Page 1 of 2

Renaissance Technologies is one of the most successful hedge funds, and founder Jim Simons has become a multi-billionaire. The flagship Medallion Fund is closed to outside investors and primarily manages the wealth of Simons and other Renaissance personnel. Renaissance disclosed many of its long equity positions as of the end of December in its recent 13F filing (see the full list of stocks it reported owning). 13F filings can also be a rich source of information for investment strategies; we’ve found that the most popular small cap stocks among hedge funds outperform the market by an average of 18 percentage points per year (learn more about our small cap strategy) and other techniques are probably possible as well. Here we go through Renaissance’s most recent 13F and provide a brief discussion of its five largest holdings in stocks which currently have trailing and forward P/E multiples of 13 or lower:

Apple Inc. NASDAQ AAPL

One of Renaissance’s top picks was Intel Corporation (NASDAQ:INTC), whose business has been struggling as consumer shift away from PCs. The stock price has fallen 20% in the last year, and last quarter earnings were down 27% from where they were in the fourth quarter of 2011. Intel currently trades at 10 times trailing earnings, so the market is expecting the company to somewhat stabilize its bottom line; analysts generally agree as the forward P/E is also 10. Billionaire Ken Fisher’s Fisher Asset Management owned just over 18 million shares of Intel at the end of December (find Fisher’s favorite stocks), slightly less than Renaissance did.

RENAISSANCE TECHNOLOGIESThe fund actually increased its stake in Apple Inc. (NASDAQ:AAPL) between October and December to a total of almost 400,000 shares. Apple Inc. (NASDAQ:AAPL) is another stock that has been plunging recently- it’s actually down about 20% year to date, and is now valued at only 10 times trailing earnings. Wall Street analysts are very bullish and actually are predicting continued high earnings growth, resulting in a five-year PEG ratio of 0.5. Even if growth is much lower we see a significant margin of safety at Apple Inc. (NASDAQ:AAPL), which slipped to #2 in our ranking of the most popular stocks among hedge funds (AIG is the new #1).

Find three more cheap stocks Simons’ money was invested in:

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!