Not Even Jim Simons’ Mathematical Models Could Pick Winning Stocks In Q3

Alaska Air Group Inc. (NYSE:ALK)

Shares Owned by RenTec (as of June 30): 6,045,200

Value of RenTec’s Shares (as of June 30): $389.5 million

Percentage of RenTec’s Public Equity Portfolio (as of June 30): 0.88%

Third Quarter Returns: 2.4%

Alaska Air Group Inc. (NYSE:ALK) operates Alaska Airlines and Horizon Air Industries, and has a market cap of more than $10 billion. The company’s stock has increased by over 32% year-to-date, and was one of the rare stocks to post positive returns in the third quarter. For the second quarter of 2015, Alaska Air Group Inc. (NYSE:ALK) reported net income of $230 million, representing a 46% increase over the prior-year quarter. Another firm we track that loves Alaska Air Group Inc. (NYSE:ALK) is Paul Reeder and Edward Shapiro’s PAR Capital Management, which owns 4.55 million shares as of June 30.

Domino’s Pizza Inc. (NYSE:DPZ)

Shares Owned by RenTec (as of June 30): 3,336,184

Value of RenTec’s Shares (as of June 30): $378.3 million

Percentage of RenTec’s Public Equity Portfolio (as of June 30): 0.86%

Third Quarter Returns: -4.5%

Domino’s Pizza Inc. (NYSE:DPZ) is a pizza retail chain with a market cap of $5.9 billion. The company beat Wall Street’s expectations for its second quarter by reporting income of $45.9 million, or diluted EPS of $0.81, versus the Street’s estimate of $0.79 per share. The reported diluted EPS was up by 20.9% year-over-year. However, Domino’s Pizza’s third quarter results, released this morning, missed EPS estimates of $0.74 by $0.07. Domino’s Pizza Inc. (NYSE:DPZ) is also a favorite stock of Andy Brown’s Cedar Rock Capital, which holds 2.17 million shares as of June 30.

Linear Technology Corporation (NASDAQ:LLTC)

Shares Owned by RenTec (as of June 30): 8,094,500

Value of RenTec’s Shares (as of June 30): $358 million

Percentage of RenTec’s Public Equity Portfolio (as of June 30): 0.81%

Third Quarter Returns: -8.1%

Linear Technology Corporation (NASDAQ:LLTC) is a technology company that designs, manufactures, and markets a line of analog integrated circuits worldwide. For the fiscal fourth quarter of 2015, ended June 28, the company’s net income increased by $3.0 million from a year ago to $132.7 million. Revenues were $379.5 million, up from $365.4 million reported a year earlier. Among the largest shareholders of Linear Technology Corporation (NASDAQ:LLTC) in our database is David Blood and Al Gore’s Generation Investment Management, which holds 2.35 million shares of the company.

Disclosure: None