15 Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies

In this article, we will discuss the 15 Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies.

The relief rally following the Iran-war-triggered sell-off has spread to small companies. Unlike in the past year, when large-cap stocks were the driving force in the equity markets, small-cap stocks are also on the move amid heightened focus on valuations.

Small caps are starting to break out after years of lagging behind their megacap peers. The Russell 2000 index is on the cusp of all-time highs after a 13% year to date gain. The index has outperformed the S&P 500, which is up about 8%, affirming renewed focus on small companies as investors diversify portfolios away from large-cap stocks.

However, the gains in recent weeks appear to be curtailed amid growing fears that the US Federal Reserve will not cut interest rates. A surge in inflation in recent weeks, amid a spike in energy prices, has seen bets on interest rate cuts dissipate, with expectations now high for a December hike.

“Tighter monetary policy tends to be more of a drag on small-cap stocks,” said Mandy Xu, head of derivatives market intelligence at Cboe Global Markets.

Early in the year, analysts at Morgan Stanley reiterated that improving fundamentals support small-cap equity outperformance, even as the Fed pares back on interest rate cuts for the year. According to equity strategist Michael Wilson, investors should stick with small caps on the premise that earnings strength remains a dominant driver. The strategists reiterated that small-cap earnings growth remains the strongest since 2022.

For small-cap stocks to keep rising, as has been the case in the first half of the year, the macro backdrop needs to stabilize. Moderation in energy markets and easing inflation would be the catalyst to send the stocks higher

“We have to get back to a more ‘normal’ environment for the small caps to work. If that happens, investors may be able to focus more on the improving fundamentals underneath the small-cap universe. Then you start looking at the fundamentals underneath the small-cap space, and it starts to get pretty exciting,” said Mark Hackett, chief market strategist at Nationwide’s Investment Management Group.

Renaissance Technologies is one quantitative hedge fund that has diversified its portfolio to focus on micro and small-cap stocks likely to benefit from a stable macro environment. Founded in 1982 by mathematician James Simon, the hedge fund leverages advanced mathematical models and machine learning to analyze equity markets for the best high-risk, high-reward opportunities.

Jim Simons’ Medallion Fund, closed to outside investors, has delivered extraordinary returns since inception, including 56.6% during the dot‑com crash and 74.6% in the 2007–2011 financial crisis, with an average annual gain of 31.5%. In 2025, the hedge fund’s internal Medallion Fund gained an estimated 20%.

At his death, Simons’ fortune stood at $31.4 billion, largely from Renaissance’s success. Renaissance’s other funds have also performed strongly: the Institutional Diversified Alpha Fund gained 9.05% by February 2025 after a 15.6% return in 2024, while the Institutional Equities Fund rose 11.85% in early 2025, its best start in a decade. Both funds manage risk with stock index futures and options, though the firm cautions that unwinding large positions could impact markets.

With that in mind, let’s take a look at the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies.

Jim Simons of Renaissance Technologies

Our Methodology

For this list, we picked stocks from Renaissance Technologies’ 13F portfolio as of the end of Q1 2026. From there, we identified companies with a market cap of $2 billion or lower in the portfolio. Next, we selected the fund’s top 30 holdings by equity value within this market-cap range. We also detailed the number of hedge funds holding stakes in the stocks in Q4 2025. Finally, we ranked the stocks in ascending order based on Renaissance Technologies’ equity value in them.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

Best Micro and Small Cap Stocks to Buy According to Jim Simons’ Renaissance Technologies

15. Pediatrix Medical Group Inc (NYSE:MD)

Renaissance Technologies Equity Stake: $32.78 Million

Number of Hedge Fund Holders: 21

Market Cap: $1.77 Billion

Pediatrix Medical Group Inc (NYSE:MD) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. Pediatrix Medical Group Inc (NYSE:MD) has soared roughly 56% over the past year, and analysts see more upside potential in it.

Pediatrix Medical Group released its Q1 2026 financial results on May 5. It delivered revenue of $476.2 million, an increase from $458.4 million in the same period the prior year. The revenue also came well above the $465.7 million that analysts expected.

The management attributed the increase to growth in same-unit revenue as well as recent acquisitions. The company posted adjusted EBITDA of $58.2 million, compared with $49.2 million a year ago. Again, the management said favorable same-unit results and recent acquisitions drove the increase in adjusted EBITDA.

Net income was $29.6 million, or $0.36 per share, reflecting an increase from $20.7 million, or $0.24 per share in the same quarter a year ago. Adjusted EPS of $0.44 rose from $0.33 a year ago and surpassed the Street’s expectation of $0.38. The company wrapped the quarter with a cash balance of $205.8 million and $224.8 million in net accounts receivable.

Looking ahead, Pediatrix Medical Group is anticipating full-year 2026 adjusted EBITDA between $280 million and $300 million. The company’s CEO Mark S. Ordan said that robust cash flow and a solid balance sheet positions them well to “find new opportunities and move decisively.”

Pediatrix Medical Group Inc (NYSE:MD) is a medical practice company. It partners with hospitals and healthcare facilities to provide specialist medical care to women, babies, and children. This physician-led practice group operates in 37 states and has hundreds of hospital partners.

14. Willis Lease Finance Corp (NASDAQ:WLFC)

Renaissance Technologies Equity Stake: $33.68 Million

Number of Hedge Fund Holders: 15

Stock Upside Potential: 26.50%

Market Cap: $1.26 Billion

Willis Lease Finance Corp (NASDAQ:WLFC) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. The stock has gained roughly 36% year-to-date and soared almost 60% over the past six months. Analysts see more upside in Willis Lease Finance Corp (NASDAQ:WLFC) shares, forecasting a rise of at least 26% from the current level.

On May 13, Willis Lease Finance Corp announced the offering of $200 million in convertible senior notes. It said that it was expecting the offering to generate net proceeds of around $193.1 million. But the proceeds could be more since the company granted the underwriters an option to purchase up to $30 million in additional notes to cover over-allotments.

These notes mature in May 2031 and carry an interest rate of 2.50%. At maturing, investors can swap these notes for Willis Lease Finance Corp shares instead of receiving cash. For those who opt for equity instead of cash, the conversion rate is 3.7202 shares of stock per $1,000 of notes. This represents a conversion price of around $268.80, which is roughly 46% above the current WLFC stock price.

Willis Lease Finance Corp’s upsizing of the offering also demonstrates strong investor interest in the notes. The company increased the offering size from $175 million, as announced originally. Willis Lease Finance Corp plans to use the proceeds from this offering to repay amounts outstanding under its revolving credit facility.

Willis Lease Finance Corp (NASDAQ:WLFC) is a global aviation company engaged in leasing business. The company leases commercial aircraft, aircraft engines, and aircraft spare parts. It serves airlines, MRO facilities, and other parties in the aviation industry.

13. Inmode Ltd (NASDAQ:INMD)

Renaissance Technologies Equity Stake: $35.38 Million

Number of Hedge Fund Holders: 25

Stock Upside Potential: 12.50%

Market Cap: $886.7 Million

Inmode Ltd (NASDAQ:INMD) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. Inmode Ltd (NASDAQ:INMD) reported its Q1 2026 results on May 6, saying revenue rose 5% YoY to $82 million. The Israeli medical device company delivered topline growth even as it operated in a soft market marked by macroeconomic uncertainties amid regional conflicts.

Inmode reported net income of $11.6 million, or $0.18 per share. That was down from $18.2 million, or $0.26 per share a year ago. The bottomline squeeze stemmed from the rising cost of goods and investments in the sales force and subsidiaries. The company is setting up subsidiaries in key markets as it works to grow its international sales. The company is anticipating full-year 2026 revenue between $365 million and $375 million.

Despite the macroeconomic uncertainty and soaring costs, Inmode returned millions of dollars to shareholders and closed Q1 in a solid financial position. At the time of reporting the results, the management said nearly 4 million shares had been repurchased and $52.7 million in cash returned to shareholders year-to-date.

Inmode wrapped up Q1 with $537.2 million in cash, and the company said the financial strength allows it to explore a broad range of capital allocation opportunities.

Inmode Ltd (NASDAQ:INMD) provides medical products used in various procedures. The company says it is focused on improving existing treatments and enabling emerging surgical procedures. Inmode was founded in 2008 and is headquartered in Israel.

12. Sarepta Therapeutics Inc (NASDAQ:SRPT)

Renaissance Technologies Equity Stake: $36.23 Million

Number of Hedge Fund Holders: 36

Stock Upside Potential: 28.22%

Market Cap: $1.79 Billion

Sarepta Therapeutics Inc (NASDAQ:SRPT) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. 36 elite hedge funds have positions in Sarepta Therapeutics Inc (NASDAQ:SRPT) stock, and analysts on the Street expect this gene therapy stock to pop at least 28% from its current level.

On May 6, the management of Sarepta Therapeutics hosted a call to discuss Q1 2026 results and to provide operational updates. Many things stood out from that call, including the company’s solid financial position.

Sarepta exited Q1 with $748.3 million in cash and investments, and with this, the management said the company is positioned for self-funded growth. As the CEO Douglas Ingram explained, this financial strength means a lot to the company, including the ability to fully fund the advancement of pipeline projects without relying on the equity markets.

For 2026, Sarepta has outlined a set of priorities. These include stabilizing the business, restoring confidence and growth, maintaining financial strength, and advancing the pipeline. The company says its flagship product Elevidys is positioned to return to growth after safety concerns slowed it down. Increased physician engagement and a growing body of compelling evidence supporting Elevidys are some of the factors expected to fuel the therapy’s growth.

The management expects the company to remain profitable and keep growing its cash balance. For 2026, revenue is projected to be in the range of $1.2 billion to $1.4 billion.

Sarepta Therapeutics Inc (NASDAQ:SRPT) is a biotech company that develops gene therapies for neuromuscular and central nervous system conditions. The company targets rare diseases with unmet treatment needs. Sarepta has several commercial products and an expansive pipeline of potential products.

11. CRA International Inc (NASDAQ:CRAI)

Renaissance Technologies Equity Stake: $36.34 Million

Number of Hedge Fund Holders: 23

Stock Upside Potential: 67.64%

Market Cap: $953 Million

CRA International Inc (NASDAQ:CRAI) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. Analysts expect the stock to rise more than 67% over the next 12 months.

CRA International Inc (NASDAQ:CRAI) released its Q1 2026 results on May 7. It was another record quarter for the company. Revenue jumped 10.5% YoY to $201.0 million, marking the highest quarterly revenue in the company’s history. This solid performance comes on the heels of the previous record-setting Q4 2025 revenue figure. The consulting company achieved growth across eight practice areas during the quarter.

In terms of market regions, the company breaks out revenue into North American and international segments. The international business grew the fastest at 20.3%, compared to the 8.5% growth of the North American business.

However, net income dropped to $11.1 million from $18 million a year ago. In the latest quarter, the company faced higher expenses in everything from cost of services to selling, general, and administrative costs.

During Q1, the company returned $25.3 million to shareholders through a combination of dividend payments and share repurchases. It exited the quarter with $32.5 million in cash and cash equivalents.

CRA International Inc (NASDAQ:CRAI) is a global consulting firm. Its service areas include economics, finance, and management. The company provides expert testimony and strategic advice to law firms, accounting firms, corporations, government agencies, and other clients.

10. Radware Ltd (NASDAQ:RDWR)

Renaissance Technologies Equity Stake: $36.54 Million

Number of Hedge Fund Holders: 16

Stock Upside Potential: 22.55%

Market Cap: $1.2 Billion

Radware Ltd (NASDAQ:RDWR) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. Radware Ltd (NASDAQ:RDWR) shares have gained around 25% year-to-date, and the Street sees more upside in the stock.

Radware’s Q1 2026 earnings report came out on May 7. The report showed revenue increased 11% YoY to $79.8 million, driven by strong growth in the cloud security business. In terms of market regions, Radware reports three revenue segments. Americas is the largest region, and sales there increased 40% to $38.4 million. The company struggled in the EMEA region, as sales there decreased 11% to $25.1 million. APAC region sales were flat at $16.3 million.

The company posted an adjusted net income of $13.4 million or $0.30 per share, compared to $13.6 million or $0.31 per share a year ago. The decline was attributed to forex headwinds, as the Israeli currency strengthened against the dollar.

All said and done, Radware finished the quarter with $433.8 million in cash. Cash flow from continuing operations was $19.9 million in Q1.

Radware CEO Roy Zisapel said the Q1 results reflect the progress the company is making in executing its strategy. That strategy includes scaling the platform and capturing the growing opportunity in the cloud and application security market.

Radware Ltd (NASDAQ:RDWR) is a global provider of cybersecurity and application delivery solutions. Its solutions help protect corporate networks while ensuring that applications run efficiently. Radware products are used in on-premise, cloud, and software-defined data centers.

9. Pacira Biosciences Inc (NASDAQ:PCRX)

Renaissance Technologies Equity Stake: $41.26 Million

Number of Hedge Fund Holders: 30

Stock Upside Potential: 22.36%

Market Cap: $910.9 Million

Pacira Biosciences Inc (NASDAQ:PCRX) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. Analysts expect the stock to pop more than 20% from its current level.

Pacira Biosciences Inc (NASDAQ:PCRX) reported its Q1 2026 results on April 30. It said revenue jumped 5% YoY to $177.4 million and surpassed the projected $172.46 million. The company recorded growth across its commercial portfolio, including a 7% increase in Exparel sales volume. Exparel is the company’s flagship product, and it contributed more than 80% of the company’s total revenue.

Pacira Biosciences delivered a GAAP net income of $2.9 million, compared with $4.8 million in the prior year as it faced higher expenses in areas like research programs. The company wrapped up the quarter with $202.2 million in cash. It spent $50 million on share buybacks during the quarter.

Looking ahead, Pacira Biosciences expects full-year 2026 total revenue in the range of $745 million to $770 million. Exparel sales are projected in the band of $600 million to $620 million.

As it works to grow sales with its existing commercial portfolio, Pacira Biosciences is also advancing its various pipeline projects. The company expects topline data from the Phase 2 ASCEND study of its PCRX-201 program by the end of 2026. PCRX-201 is a gene therapy for treating knee osteoarthritis, a condition that affects some 15 million Americans.

Pacira Biosciences Inc (NASDAQ:PCRX) develops non-opioid pain management solutions. The company has several commercial products along with several pipeline projects. The company’s solutions are designed to address unmet medical needs in the targeted fields.

8. Iradimed Corp (NASDAQ:IRMD)

Renaissance Technologies Equity Stake: $42.42 Million

Number of Hedge Fund Holders: 19

Stock Upside Potential: 29.22%

Market Cap: $1.14 Billion

Iradimed Corp (NASDAQ:IRMD) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. The stock has returned nearly 80% over the past year, and analysts see more upside potential in it.

Iradimed reported its Q1 2026 results on May 1, and the results marked a strong start to 2026. First, revenue rose 13% YoY to $22 million, and net income jumped 24% to $5.8 million, or $0.45 per share. The increase in profit was supported by a combination of continued revenue growth and disciplined expense management.

Second, Iradimed hit a significant milestone in Q1 with the commercial launch of its next-generation 3870 MRI-compatible IV infusion pump system. The management has noted strong interest and strong early order activity for this product and expects significant shipments to start in Q2.

Sales are expected to accelerate in the back half of 2026, with Q3 expected to be the first period to reflect the full impact of 3870 shipments. With the next-gen 3870 hitting the market, Iradimed CEO Roger Susi said they are focused on delivering innovative solutions and generating strong returns for investors.

Third, Iradimed anticipates Q2 revenue in the range of $20 million to $21 million. It expects GAAP EPS in the band of $0.40 to $0.44. For full-year 2026, the company is projecting revenue to come between $91.0 million and $96.0 million, with GAAP EPS forecast in the range of $1.90 to $2.05.

Iradimed Corp (NASDAQ:IRMD) is a specialty medical device company. It provides non-magnetic MRI-compatible equipment designed to be safer for use during MRI procedures. Its portfolio includes portable infusion pumps that support continuous medication delivery, ferromagnetic detection systems, and patient vital signs monitors.

7. Teladoc Health Inc (NYSE:TDOC)

Renaissance Technologies Equity Stake: $44.07 Million

Number of Hedge Fund Holders: 36

Stock Upside Potential: 12.79%

Market Cap: $1.1 Billion

Teladoc Health Inc (NYSE:TDOC) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies.

On May 1, Jefferies raised its price target Teladoc shares to $6 from $5.20 while keeping a Hold rating on the stock. Even so, the firm’s new price target remains below Teladoc’s current stock price. Jefferies based its price target hike on the company’s improved Q1 2026 performance that showed strong revenue growth in the Integrated Care segment. The firm also pointed to progress in the BetterHelp segment’s transition to insurance coverage.

However, Jefferies is maintaining a Hold rating on Teladoc stock as it continues to monitor BetterHelp’s transition.

Teladoc reported its Q1 results on April 30. Consolidated revenue dropped 2% YoY to $613.8 million, weighed down by weakness in the BetterHelp business. BetterHelp revenue declined 9% to $218.4 million. On the other hand, the Integrated Care segment revenue rose 2% to $395.4 million to partially offset the BetterHelp weakness.

BetterHelp is the company’s mental health-focused division. Teladoc said it is making progress in expanding insurance acceptance of BetterHelp.

Teladoc Health Inc (NYSE:TDOC) facilitates remote medical care in the US and globally. Its platforms connect patients with healthcare professionals for non-emergency services. As a result, patients can receive medical advice, get diagnosed, or obtain prescriptions without stepping out of their homes.

6. Liquidity Services Inc (NASDAQ:LQDT)

Renaissance Technologies Equity Stake: $45.91 Million

Number of Hedge Fund Holders: 18

Stock Upside Potential: 29.41%

Market Cap: $1.1 Billion

Liquidity Services Inc (NASDAQ:LQDT) is one of the best micro and small cap stocks to buy according to Jim Simons’ Renaissance Technologies. The stock has gained around 15% year-to-date, and the Street sees more upside potential in it.

In its March quarter report released on May 7, Liquidity Services Inc (NASDAQ:LQDT) posted strong improvements in revenue and earnings. It also finished the period with a solid cash position.

Gross merchandise volume jumped 6% YoY to $389.9 million. That powered revenue up 4% to $120.7 million. The GovDeals, CAG, and software solutions segment led the topline growth. GovDeals is the company’s largest business segment in both gross merchandise volume and revenue. Liquidity Services said the segment continued to grow in the March quarter despite adverse weather events that impacted business in certain regions.

The company attributed this growth to expanding the service level it offers sellers and buyers in this segment. Registered buyers across the company’s platforms hit 6.3 million, reflecting an 8% YoY increase.

The company posted a net income of $7.5 million, compared to $7.1 million in the prior year. The GAAP EPS of $0.23 increased from $0.22 in the prior year. Liquidity Services closed the quarter with a cash balance of $204.0 million and no debt.

Maryland-based Liquidity Services Inc (NASDAQ:LQDT) operates B2B online marketplaces that facilitate the resale of a wide variety of items. Its platforms enable businesses and government agencies to sell surplus, returned, or end-of-life items. The company also provides software solutions.

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