13 Cheap Penny Stocks to Buy According to Hedge Funds

Published on December 15, 2023 at 9:08 am by Fahad Saleem in Hedge Funds, Lists, News

In this article, we will take a detailed look at the 13 Cheap Penny Stocks to Buy According to Hedge Funds. To see more such stocks, click 5 Cheap Penny Stocks to Buy According to Hedge Funds.

Stocks are roaring as investors celebrate the Fed’s latest announcement saying it’s ready to begin cutting interest rates next year. While the Fed’s decision has caused a lot of stir among the market skeptics who question the motives behind the sudden pivot and warn against the possible implications of this move, the bulls believe now is the time to pile into stocks as they don’t see the rally stopping anytime soon. Oppenheimer’s John Stoltzfus, who is very optimistic on the stock market and believes the S&P 500 could touch 5,200 in 2024, said in a program on CNBC that the stock market rally of 2023 would continue in 2024 and it would not be limited to just the mega-cap tech stocks or the Magnificent Seven group, which includes companies like Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN). The analyst also said that he does not believe the Fed would cut rates in the first quarter.

Wise investors have time and again said that bear markets provide an opportunity for long-term investors to buy and hold because after all bear markets do not tend to last long. A report by Mawer Investment provides an interest data point proving this:

“What people don’t realize, though, is that most downturns are reasonably minor and short lived. Since 1945, for example, the S&P 500 Composite Index has experienced, on average, declines of 5% or more three times a year, declines of 10% or more once a year, and declines of 15% or more once every four years. The length of those downturns ranged, on average, from about a month and a half, to four months, to nine months, respectively. True “bear markets”— when the S&P 500 declines 20% or more from its previous high—have occurred 14 times since 1946, and have lasted, on average, about a year.”

Photo by Ruben Sukatendel on Unsplash

Methodology

For this article we first used a stock screener to identify penny stocks (trading under $5) with PE ratios of less than 15. From this dataset we picked 13 stocks with the highest number of hedge fund investors.

13. Banco Bradesco SA (NYSE:BBD)

Number of Hedge Fund Investors: 15

Banco Bradesco SA (NYSE:BBD) is a cheap penny stock with a high dividend yield (over 5%). The Brazilian financial services company Banco Bradesco SA (NYSE:BBD) talked about its guidance and other important business updates during Q3 earnings call and said:

“Even considering that we grew during the quarter and we have not yet recovered in all portfolios by the same pace. It is a fact that lower origination and lower rates mix are still squeezing the client NII. We believe that we will get to normalized origination levels throughout the third quarter and throughout the year ’24. At this moment, we are operating below the guidance range.

All our reviews and reevaluation of credit models and policies have shown important results. The new credit vintages are still performing 50% better than the 2021 vintages. And we continue to monitor these delinquency ratios in the short run and the volumes. The new vintages already account for 57% of the individual’s portfolio in the retail banking segment. The quarter’s ALL was BRL9.2 billion. For credit provision expense it was 10.9% lower than the previous quarter, so this lowered the cost of risk to 4.2%. The year’s guidance range goes from BRL36.5 billion to BRL39.5 billion. At this time we are expecting to end the year close to the top as we indicated previously. Despite the improvement, we are still operating with a high level of cost of risk because this is a long-tailed process.”

Read the entire earnings call transcript here.

A total of 15 hedge funds in Insider Monkey’s database of 910 hedge funds shows that 15 funds had stakes in Banco Bradesco SA (NYSE:BBD). The most significant stakeholder of Banco Bradesco SA (NYSE:BBD) was Ken Fisher’s Fisher Asset Management which owns an $111 million stake in Banco Bradesco SA (NYSE:BBD).

12. Sibanye Stillwater Ltd (NYSE:SBSW)

Number of Hedge Fund Investors: 16

With a dividend yield of about 7% and a PE ratio of 4.6, Sibanye Stillwater Ltd (NYSE:SBSW) ranks 12th in our list of the cheap penny stocks to buy according to hedge funds.

Out of the 910 hedge funds in Insider Monkey’s database, 16 hedge funds had stakes in Sibanye Stillwater Ltd (NYSE:SBSW). The most significant stakeholder of Sibanye Stillwater Ltd (NYSE:SBSW) was Cliff Asness’s AQR Capital Management which owns a $31 million stake in Sibanye Stillwater Ltd (NYSE:SBSW).

11. VAALCO Energy, Inc (NYSE:EGY)

Number of Hedge Fund Investors: 16

VAALCO Energy, Inc (NYSE:EGY) is among the most popular penny stocks among the elite hedge funds tracked by Insider Monkey. The stock has a PE ratio under 15 and a dividend yield of 5.75%. During the third quarter VAALCO Energy, Inc’s (NYSE:EGY) adjusted EPS in the period came in at $0.07, missing estimates by $0.07. Revenue in the quarter jumped about 49% year over year to $116.27 million.

As of the end of the third quarter of 2023, 16 hedge funds out of the 910 funds in Insider Monkey’s database had stakes in VAALCO Energy, Inc. (NYSE:EGY).

10. Origin Materials Inc (NASDAQ:ORGN)

Number of Hedge Fund Investors: 16

Carbon-negative materials company Origin Materials Inc (NASDAQ:ORGN) ranks 10th in our list of the cheap penny stocks to buy according to smart money investors. In November, Origin Materials Inc (NASDAQ:ORGN) announced a restructuring and said it would cost about $2.7 million in charges in connection with a roughly 30% workforce reduction.

A total of 13 hedge funds tracked by Insider Monkey had stakes in Origin Materials Inc (NASDAQ:ORGN).

9. Nokia Oyj (NYSE:NOK)

Number of Hedge Fund Investors: 17

Nokia Oyj (NYSE:NOK) has been a popular but rather disappointing stock for investors over the past few years. Nokia Oyj (NYSE:NOK) shares have lost about 45% over the past five years. But analysts are hopeful that the 5G revolution would boost the stock. Back in October, Nokia Oyj (NYSE:NOK) maintained its FY23 outlook despite industry weakness and said it would lay off 14,000 employees by the end of 2026.

A total of 17 hedge funds out of the 910 hedge funds tracked by Insider Monkey had stakes in Nokia Oyj (NYSE:NOK). The most significant stakeholder of the firm during this period was Richard S. Pzena’s Pzena Investment Management which had a $160 million stake in Nokia Oyj (NYSE:NOK).

Among some other stocks poised to benefit from the 5G revolution are Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN).

Artisan International Value Fund made the following comment about Nokia Oyj (NYSE:NOK) in its second quarter 2023 investor letter:

“Nokia Oyj (NYSE:NOK) is the world’s third-largest provider of telecommunications equipment. The company sells its products to service providers, such as AT&T and Vodaphone. While we have held the stock, new management has simultaneously improved competitiveness and reduced costs—a remarkable achievement that has resulted in improved growth and profitability. Despite that, the share price has declined, and the valuation multiple has shrunk below 10X forward earnings. The reason is that telecommunications operators are cutting back on investment. Higher interest rates, inflation and competition are eating into customer cash flows, resulting in less capital spending. For now, Nokia will experience reduced demand. At some point, the ever-increasing need for wire and wireless bandwidth will force service providers to increase investment. In addition, Nokia’s market share is improving due to geopolitical changes and improved market competitiveness. The share price declined by 15% during the quarter.”

8. Overseas Shipholding Group Inc. (NYSE:OSG)

Number of Hedge Fund Investors: 17

Oil tanker company Overseas Shipholding Group Inc. (NYSE:OSG) is one of the undervalued penny stocks popular among hedge funds. Last month Overseas Shipholding Group Inc. (NYSE:OSG) posted Q3 results. GAAP EPS in the quarter came in at $0.22. Revenue fell 6.2% year over year to $115.44 million.

Of the 910 hedge funds in Insider Monkey’s database, 17 had stakes in Overseas Shipholding Group Inc. (NYSE:OSG). The biggest stakeholder of Overseas Shipholding Group Inc. (NYSE:OSG) was Stephen C. Freidheim’s Cyrus Capital Partners which owns a $31 million stake in Overseas Shipholding Group Inc. (NYSE:OSG).

7. B2Gold Corp (NYSE:BTG)

Number of Hedge Fund Investors: 19

Canadian mining company B2Gold Corp (NYSE:BTG) ranks 7th in our list of the undervalued penny stocks popular among hedge funds.

As of the end of the third quarter of 2023, 19 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in B2Gold Corp (NYSE:BTG). The biggest stakeholder of B2Gold Corp (NYSE:BTG) was John Overdeck and David Siegel’s Two Sigma Advisors which owns a $34 million stake in B2Gold Corp (NYSE:BTG).

Unlike Meta Platforms Inc (NASDAQ:META), NVIDIA Corp (NASDAQ:NVDA) and Amazon.com Inc (NASDAQ:AMZN), B2Gold is a small stock with risks involved.

6. W&T Offshore, Inc. (NYSE:WTI)

Number of Hedge Fund Investors: 19

W&T Offshore, Inc. (NYSE:WTI) in the third quarter of 2023 earned $0.01 per share, missing estimates by $0.04. Revenue in the quarter fell by 46.6% year over year, still beating estimates by $3.52 million.

Click to continue reading and see 5 Cheap Penny Stocks to Buy According to Hedge Funds.

Suggested Articles:

Disclosure. None. 13 Cheap Penny Stocks to Buy According to Hedge Funds was initially published on Insider Monkey.

NYSE:BTG NYSE:BBD NYSE:WTI NYSE:OSG NYSE:NOK Show more...

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Published on October 6, 2025 at by Inan Dogan, PhD

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

175 Teslas
107 Amazons
140 Metas
84 Googles
65 Microsofts
And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

The best part? You can discover everything about this company and its groundbreaking technology right now.

I’ve compiled everything you need to know about this groundbreaking company in a detailed, members-only report.

Trust me — you’ll want to read this report before putting another dollar into any tech stock.

For a ridiculously low price of just $9.99 a month, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

• Access to our Detailed Report on this Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.

• 11 New Issues of Our Premium Readership Newsletter: You will also receive 11 new issues and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.

• One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149

• Bonus Reports: Premium access to members-only fund manager video interviews

• Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.

• 30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

If you’re thinking about getting in, don’t wait – because once Wall Street catches wind of this story, the easy money will be gone.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99 a month.

2. Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on October 5, 2025 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

The AI infrastructure supercycle
The onshoring boom driven by Trump-era tariffs
A surge in U.S. LNG exports
And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

We’re now offering month-to-month subscriptions with no commitments.

For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Here’s why this is a deal you can’t afford to pass up:

Access to our Detailed Report on our AI, Tariffs, and Nuclear Energy Stock with 100+% potential upside within 12 to 24 months
BONUS REPORT on our #1 AI-Robotics Stock with 10000% upside potential: Our in-depth report dives deep into our #1 AI/robotics stock’s groundbreaking technology and massive growth potential.
One New Issue of Our Premium Readership Newsletter: You will also receive one new issue per month and at least one new stock pick per month from our monthly newsletter’s portfolio over the next 12 months. These stocks are handpicked by our research director, Dr. Inan Dogan.
One free upcoming issue of our 70+ page Quarterly Newsletter: A value of $149
Bonus Content: Premium access to members-only fund manager video interviews
Ad-Free Browsing: Enjoy a month of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Price Guarantee: Your renewal rate will always remain the same as long as your subscription is active.
30-Day Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund within 30 days, no questions asked.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up

13 Cheap Penny Stocks to Buy According to Hedge Funds

Published on December 15, 2023 at 9:08 am by Fahad Saleem in Hedge Funds, Lists, News

13. Banco Bradesco SA (NYSE:BBD)

12. Sibanye Stillwater Ltd (NYSE:SBSW)

11. VAALCO Energy, Inc (NYSE:EGY)

10. Origin Materials Inc (NASDAQ:ORGN)

9. Nokia Oyj (NYSE:NOK)

8. Overseas Shipholding Group Inc. (NYSE:OSG)

7. B2Gold Corp (NYSE:BTG)

6. W&T Offshore, Inc. (NYSE:WTI)

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Published on October 6, 2025 at by Inan Dogan, PhD

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on October 5, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up:

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Premium

Log In

Sign Up

13 Cheap Penny Stocks to Buy According to Hedge Funds

Published on December 15, 2023 at 9:08 am by Fahad Saleem in Hedge Funds, Lists, News

Share

13. Banco Bradesco SA (NYSE:BBD)

12. Sibanye Stillwater Ltd (NYSE:SBSW)

11. VAALCO Energy, Inc (NYSE:EGY)

10. Origin Materials Inc (NASDAQ:ORGN)

9. Nokia Oyj (NYSE:NOK)

8. Overseas Shipholding Group Inc. (NYSE:OSG)

7. B2Gold Corp (NYSE:BTG)

6. W&T Offshore, Inc. (NYSE:WTI)

Share

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Published on October 6, 2025 at by Inan Dogan, PhD

AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Published on October 5, 2025 at by Inan Dogan, PhD

Here’s why this is a deal you can’t afford to pass up: