Billionaire Cliff Asness Portfolio: 10 Stocks Under $20

In this article, we reviewed billionaire Cliff Asness’ investment philosophy and portfolio management strategies. We also examined his hedge fund’s top 10 stocks under $20.

American billionaire Cliff Asness is one of the most prominent Wall Street figures. He founded AQR Capital Management in 1998, a hedge fund focused on factor-based strategies for bolstering a quantitative approach to investing. Asness, now 55 and worth around $1.4 billion, earned dual degrees from the University of Pennsylvania in Computer Science and Economics, as well as a Ph.D. in Finance from the University of Chicago. Before founding AQR Capital, he worked on Goldman Sachs Asset Management’s quantitative research desk, where he developed and used computer-driven models to beat the market. 

As of September, AQR Capital Management managed more than $164 billion in assets, and its 13F securities portfolio was worth $53.9 billion. The firm’s securities portfolio includes thousands of small and large cap stocks, and we will review the top 10 stocks under $20 out of them. 

The most notable stocks in Cliff Asness’ portfolio under $20 include Marathon Oil Corporation (NYSE:MRO), F.N.B. Corporation (NYSE:FNB), CEMEX, S.A.B. de C.V. (NYSE:CX), Xerox Holdings Corporation (NASDAQ:XRX), and Kinder Morgan, Inc. (NYSE:KMI). 

In addition to investing in stocks under $20, which give investors the chance to buy shares in bulk, the quant fund’s strategy of investing in high-quality companies and holding them for a long time has also led to massive gains. For instance, Cliff Asness has owned stakes in Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) since 2004, which means that AQR capital management benefited from the tech giants’ spectacular share price gains and dividend returns.

As of September, the firm owned stakes worth almost $1.90 billion in Apple Inc. and $1.7 billion in Microsoft Corporation.

Let’s start digging into billionaire Cliff Asness’ portfolio to review 10 stocks under $20. For this article, we made use of AQR Capital Management’s 13F portfolio as of September to pick 10 stocks under $20.  

Cliff Asness of AQR Capital Management

Billionaire Cliff Asness Portfolio: 10 Stocks Under $20

10. CEMEX, S.A.B. de C.V. (NYSE:CX)

AQR Capital Management’s Stake Value: $22.70 million

Percentage of AQR Capital Management’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 23

Shares of the construction material supplier CEMEX, S.A.B. de C.V. gained upside momentum this year amid economic recovery and improvement in infrastructure activities. The stock price of CEMEX, S.A.B. de C.V. is currently trading around $6, with a market cap of over $9 billion. Its top line grew 8% year over year in the September quarter, driven by robust demand across all products. Moving ahead, CEMEX, S.A.B. de C.V. anticipates booming residential sector will fuel cement and other construction products demand. 

CEMEX, S.A.B. de C.V. was in 23 hedge funds’ portfolios as of June. Howard Marks’ Oaktree Capital Management was the leading stakeholder in Cemex SAB de CV with a stake worth $175 million. 

9. Marathon Oil Corporation (NYSE:MRO)

AQR Capital Management’s Stake Value: $23.4 million

Percentage of AQR Capital Management’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 34

AQR Capital lifted its position by 103% in Marathon Oil Corporation during the September quarter. The firm’s strategy appears to be working because energy companies like Marathon Oil Corporation have been benefiting from strengthening oil demand and increasing prices since the beginning of this year. The share price of Marathon Oil Corporation is up 35% in the last six months, enlarging year-to-date gains to over 140%. Marathon Oil Corporation also offers a dividend yield of over 1.12%. Since the end of the last year, Marathon Oil Corporation has made a cumulative 100% dividend increase. 

Of the 873 hedge funds tracked by Insider Monkey, 34 were bullish about Marathon Oil Corporation at the end of June compared to 29 positions in the prior quarter.  DE Shaw and Israel Englander’s Millennium Management were among the leading stakeholders in Marathon Oil Corporation.   

8. F.N.B. Corporation (NYSE:FNB)

AQR Capital Management’s Stake Value: $24.75 million

Percentage of AQR Capital Management’s 13F Portfolio: 0.04%

Number of Hedge Fund Holders: 16

Billionaire Cliff Asness also raised his stake in F.N.B. Corporation by 38% in the September quarter. F.N.B. Corporation, which is ranked eighth on the list of 10 stocks under $20, is a good stock to hold for the long term due to its healthy dividend yield of 3.86%. Moreover, the share price of F.N.B. Corporation is up 30% since the beginning of this year. F.N.B. Corporation also looks financially strong with record revenue of $321 million in the third quarter. 

Like AQR Capital, Matthew Lindenbaum’s Basswood Capital and Jim Simons’ Renaissance Technologies are among the leading stakeholders in F.N.B. Corporation. The number of long hedge funds’ positions in F.N.B. Corporation stood at 16 as of June, according to data tracked by Insider Monkey. 

7. Xerox Holdings Corporation (NASDAQ:XRX)

AQR Capital Management’s Stake Value: $30.2 million

Percentage of AQR Capital Management’s 13F Portfolio: 0.05%

Number of Hedge Fund Holders: 25

The stock price of Xerox Holdings Corporation dropped 19% in the last six months due to short-term supply chain issues. However, following the recent dip, Xerox Holdings Corporation appears like one of the best stocks to own under $20 as AQR has a $30 million stake in the company as of the third quarter. Xerox Holdings Corporation posted revenue of $1.76 billion in the third quarter and expects full-year revenue in the range of $7.1 billion. 

Xerox Holdings Corporation was in 25 hedge funds’ portfolios at the end of June. Carl Icahn’s Icahn Capital LP is the leading stakeholder in Xerox Holdings Corporation, according to the data tracked by Insider Monkey. 

6. Kinder Morgan, Inc. (NYSE:KMI)

AQR Capital Management’s Stake Value: $35.8 million

Percentage of AQR Capital Management’s 13F Portfolio: 0.06%

Number of Hedge Fund Holders: 38

Kinder Morgan, Inc. is also among the best stocks under $20 amid its growth potential and a massive dividend yield of 6.63%. Kinder Morgan, Inc. is engaged in providing an energy infrastructure in North America. The rebound in energy demand boosted its revenue by 30% year over year in the third quarter. Kinder Morgan, Inc. is likely to perform well in the quarters ahead amid expectations for stronger fuel demand. 

Of the 873 hedge funds tracked by Insider Monkey, Kinder Morgan, Inc. was in 38 hedge funds’ portfolios as of June. David Abrams’ Abrams Capital Management was one of the leading stakeholders in Kinder Morgan, Inc. with a stake worth $208 million. 

Like Marathon Oil Corporation, F.N.B. Corporation, CEMEX, S.A.B. de C.V., and Xerox Holdings Corporation, Kinder Morgan, Inc. has strong growth prospects ahead. Investors can also consider high growth stocks such as Apple Inc. and Microsoft Corporation when it comes to taking advantage of technological innovations.