In this article, we discuss Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential.
Jim Simons was (and still is even after his death in May 2024) one of the biggest names – if not the biggest – in the hedge fund space. He was a gifted mathematician and had a successful career in academia before making a bold pivot to finance in the late 70s.
In 1978, he founded Monemetrics (a currency trading firm) and Limroy (a hedge fund), which were collapsed into one entity in 1982 and renamed Renaissance Technologies Corporation. This entity had one major objective: to use quantitative, computer-driven models to exploit market inefficiencies. In other words, Simons and his team were committed to making investment decisions based on sophisticated algorithms.
Renaissance Technologies (RenTech) began as a hedge fund but later morphed into something bigger. It is now an investment management firm that operates several hedge funds. Its flagship offering is the Medallion Fund. The Medallion Fund is known for extraordinary returns. During the dot.com crash (early 2000s) and the financial crisis (2007-2011), Medallion’s returns were 56.6% and 74.6%, respectively. Following the first two years of operation, the lowest annual return was 31.5%.
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The Medallion Fund’s track record in the market, and by extension RenTech’s, made Simons a lot of money. At death, he was worth $31.4 billion and ranked among the top 100 richest people in the world. And, as Simons often said, all of the success he had in the market comes down to the love of mathematics. Accordingly, the Medallion Fund has been capable of extraordinary returns mostly because the investment team – led by Simons – leveraged mathematics.
The fund utilizes algorithm-based methods to identify patterns and leverage past data for investing decisions. That is why RenTech invested (and continues to invest) billions in intellectuals and professionals from fields like Mathematics, Computer Science, and Physics. In one of his last interviews, he said: “We hired statisticians, physicists, astronomers, mathematicians — the important thing was that they were very smart.”
Jim Simons was a generational talent when it came to investing. He started an investment business and led to heights that others can only dream of. And because his legacy lives in RenTech, it makes sense to want to know what companies they’re invested in.
Jim Simons of Renaissance Technologies
Our Methodology
We sifted through Renaissance Technologies’ Q4 2024 SEC 13F filings to compile this list. We focused only on shares in companies and excluded interests in ETFs and options. Then, we picked the stocks with a market capitalization of $10 billion or less. From the result, we ranked the stocks based on analyst price targets and selected the top 10 companies with the highest upside potential (as of April 30).
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Billionaire Jim Simons’ RenTech’s 10 Small-Cap Stock Picks with Huge Upside Potential
10. Wynn Resorts, Limited (NASDAQ:WYNN)
Renaissance Technologies’ Stake Value: $139,299,697
Upside Potential as of May 1: 35.61%
Market Capitalization as of May 1: $8.50 Billion
Number of Hedge Fund Holders: 64
Wynn Resorts, Limited (NASDAQ:WYNN) designs, builds and operates luxury resorts and casinos. Its main products and services include high-end hotels, gaming facilities like casinos, fine dining restaurants, entertainment venues, spas, and retail spaces. The company operates primarily in the United States (Las Vegas and Boston) and Macau, China.
In Q4 2024, Wynn Resorts (NASDAQ:WYNN) reported flat operating revenues of $1.84 billion year-over-year. However, the full-year 2024 revenues increased to $7.13 billion, compared to $6.53 billion for the previous year. Net income for the quarter decreased to $277.0 million compared to $729.2 million for Q4 2023. For the full year 2024, net income was $501.1 million, compared to $730.0 million for the previous fiscal year. The Las Vegas Operations segment performed the best among the company’s operating segments. Operating revenues increased by 16.2% during the quarter to $655.2 million. This growth came on the back of rising casino revenues (29.9%) and hotel revenues (10.8%).
Wynn Resorts (NASDAQ:WYNN) is making serious international expansion moves. For instance, in the Wynn Al Marjan Island project in the UAE, construction has advanced to the thirty-fifth floor of the hotel tower. The company has contributed $631.7 million to the project to date, and the resort is expected to open in 2027. The company is also among several global casino operators showing interest in Thailand’s Entertainment Complex Project, according to a recent report by Inside Asian Gaming. Despite these positive developments, Argus downgraded the stock from Buy to Hold on April 23. The research firm cited concerns about a slow economic recovery in Macau and expectations of only modest growth in US operations.
9. Alkermes plc (NASDAQ:ALKS)
Renaissance Technologies’ Stake Value: $157,568,217
Upside Potential as of May 1: 35.04%
Market Capitalization as of May 1: $4.952 Billion
Number of Hedge Fund Holders: 36
Alkermes plc (NASDAQ:ALKS) is a biopharmaceutical company based in Ireland. It develops and manufactures medicines for mental health, neurological conditions, and cancer. Its key products include treatments for alcohol and opioid dependence (like VIVITROL®), schizophrenia (ARISTADA® and LYBALVI®), and bipolar I disorder.
In its fourth quarter and full-year 2024 financial results, Alkermes (NASDAQ:ALKS) reported total revenues of $1.56 billion for the year. Proprietary product net sales increased approximately 18% year-over-year to $1.08 billion. The company posted $372 million in GAAP net income from continuing operations and diluted earnings per share (EPS) of $2.20. Notably, VIVITROL revenues grew 31% (to $134.1 million) in the quarter compared to the same period in 2023. At the same time, LYBALVI revenues increased 37% to $77.0 million for the quarter.
These strong financial results align with growing opportunities in the addiction treatment space. A recent Harris Poll survey commissioned by Alkermes (NASDAQ:ALKS) revealed that 83% of respondents with alcohol use disorder (AUD) agreed that it’s difficult to treat/manage AUD through willpower alone. This highlights the importance of medical interventions. Additionally, market research indicates the global detox products market was valued at $66.23 billion in 2024 and is expected to grow at a CAGR of 6.3% through 2030. On April 28, 2025, UBS revised its price target for Alkermes (NASDAQ:ALKS) from $38 to $33 while maintaining a Neutral rating. The firm cited softer Q1 guidance and anticipated market dynamics related to upcoming orexin-related data releases in the latter half of 2025.
8. Perdoceo Education Corporation (NASDAQ:PRDO)
Renaissance Technologies’ Stake Value: $113,229,501
Upside Potential as of May 1: 38.78%
Market Capitalization as of May 1: $1.64 Billion
Number of Hedge Fund Holders: 27
Perdoceo Education Corporation (NASDAQ:PRDO) is an American for-profit postsecondary education provider. The company offers career-oriented degree programs through three main institutions: the University of St. Augustine for Health Sciences (USAHS), Colorado Technical University (CTU), and the American InterContinental University System (AIUS). It targets students seeking higher education, and its end market is primarily the US education sector.
Perdoceo Education Corporation’s (NASDAQ:PRDO) quarterly revenue in Q4 2024 increased by 19.3% to $176.4 million compared to the prior year quarter. Operating income surged 133.2% to $37.2 million, while adjusted operating income rose 122.9% to $43.2 million. The company’s growth is underpinned by impressive enrollment gains; total student enrollments increased by 20.0% to 41,400 students during the fiscal year 2024. This includes the addition of 3,800 students from the newly acquired University of St. Augustine for Health Sciences (USAHS).
Looking ahead, Perdoceo Education Corporation’s (NASDAQ:PRDO) management is optimistic about 2025. They project adjusted earnings per diluted share to range between $2.31 and $2.51, a potential growth from the $2.29 recorded in 2024. According to CEO Todd Nelson, the company has robust momentum in prospective student interest, student retention, and student engagement.
“This broad momentum sets us up well for 2025 while our faculty and student support teams continue to prioritize enhancing student experiences, retention and academic outcomes for current and prospective learners,” he commented.
On April 26, 2025, analysts at Barrington Research reaffirmed their Outperform rating on Perdoceo (NASDAQ:PRDO) stock with a $35.00 price target. This suggests a potential upside of nearly 40% from current levels as of May 1.
7. Permian Resources Corporation (NYSE:PR)
Renaissance Technologies’ Stake Value: $155,436,972
Upside Potential as of May 1: 43.93%
Market Capitalization as of May 1: $9.677 Billion
Number of Hedge Fund Holders: 54
Permian Resources Corporation (NYSE:PR) is an independent oil and natural gas producer. It explores for, extracts, and develops crude oil, natural gas, and natural gas liquids. Its products serve the energy sector, supplying fuel to refineries and other industrial buyers in both domestic and global markets.
In Q4 2024, Permian Resources (NYSE:PR) reported solid operational performance. The quarter’s crude oil production averaged 171,274 barrels per day (Bbls/d), and total production reached 368,414 barrels of oil equivalent per day (Boe/d). On the financial front, the company generated $872 million in cash from operating activities and $400 million in adjusted free cash flow during the quarter. Notably, the corporation has achieved commendable operational efficiency gains; it reduced drilling and completion costs to approximately $775 per lateral foot, a 3% reduction from the previous quarter and a 14% reduction year-over-year.
For 2025, Permian Resources (NYSE:PR) has outlined a capital-efficient operational plan focused on delivering approximately 8% higher annual production compared to 2024. It also aims to maintain a similar capital budget of between $1.9 billion and $2.1 billion. The company expects to average 170-175 mega barrels per day (MBbls/d) of oil production and 360-380 mega barrels of oil equivalent per day (MBoe/d) of total production.
On April 29, 2025, Bank of America (BofA) lowered its price target for Permian Resources (NYSE:PR) from $17 to $15, while maintaining a Buy rating. This adjustment reflects BofA’s updated oil market projections, which predict lower WTI oil prices for the second to fourth quarters of 2025.
6. Wayfair Inc. (NYSE:W)
Renaissance Technologies’ Stake Value: $169,952,441
Upside Potential as of May 1: 49.77%
Market Capitalization as of May 1: $3.957 Billion
Number of Hedge Fund Holders: 49
Wayfair Inc. (NYSE:W) is an American online retailer that sells home goods and furnishings. The company operates multiple brands including its flagship Wayfair store, as well as AllModern, Birch Lane, and Joss & Main.
The company is actively expanding its physical retail presence to complement its online operations. On April 30, 2025, the retailer revealed plans for a second large-format store in Atlanta, Georgia, set to open in 2026. This 150,000-square-foot space follows the successful launch of its first store in Wilmette, Illinois. Since this store opened in May 2024, it has contributed to sales in that state growing 15% faster than the US overall. Additionally, Wayfair (NYSE:W) introduced the “Wayfair Verified” program in March 2025. This is a new standard for product quality assurance that aims to boost customer confidence.
Wayfair Inc.’s (NYSE:W) strategic omnichannel expansion positions the company to capitalize on projected US e-commerce growth. Analysts expect the market to grow by 8.6% to reach $1.3 trillion in sales in 2025 and accelerate by another 9% in 2027 to reach $1.5 trillion in sales. Nonetheless, on April 25, 2025, RBC Capital analyst Steven Shemesh reduced Wayfair’s (NYSE:W) price target to $25 from $43 while maintaining a Sector Perform rating on the shares. The analyst cited ongoing challenges observed in site traffic data through April, which could introduce risks to second-quarter projections. This is despite projecting net sales and adjusted EBITDA slightly above current estimates.
5. Nova Ltd. (NASDAQ:NVMI)
Renaissance Technologies’ Stake Value: $147,867,303
Upside Potential as of May 1: 48.40%
Market Capitalization as of May 1: $5.838 Billion
Number of Hedge Fund Holders: 26
Nova Ltd. (NASDAQ:NVMI) develops and sells advanced measurement tools (known as metrology solutions) for the semiconductor and electronics industries. These tools help manufacturers check the size and quality of very small, high-tech components during production.
Nova Ltd. (NASDAQ:NVMI) reported record financial performance in Q4 and full year 2024. Revenue for the quarter climbed 9% quarter-over-quarter to $194.8 million. This growth was a remarkable 45% jump year-over-year and exceeded company guidance. For the full year, the firm posted record annual revenue of $672.4 million, a 30% increase compared to 2023. Profitability also grew substantially; non-GAAP net income for the quarter touched $62.3 million ($1.94 per diluted share), up 43% year-over-year. Full-year non-GAAP net income reached $214.9 million ($6.69 per diluted share), a 38% increase from 2023.
According to management, the strong performance was possible because of multiple growth vectors. For starters, sales of materials metrology solutions like the Nova Metrion and Nova Veraflex platforms hit new records. Also, the company posted record sales for dimensional metrology stand-alone solutions for advanced packaging and Gate-All-Around (GAA) manufacturing. Analysts hold a Strong Buy opinion on Nova Ltd. (NASDAQ:NVMI) and their 1-year median price target points to a 48.40% upside from current levels, as of May 1.
4. Alpha Metallurgical Resources Inc (NYSE:AMR)
Renaissance Technologies’ Stake Value: $108,107,826
Upside Potential as of May 1: 48.74%
Market Capitalization as of May 1: $1.535 Billion
Number of Hedge Fund Holders: 33
Alpha Metallurgical Resources Inc (NYSE:AMR) is a US-based mining company that mainly produces metallurgical coal (a raw material used to make steel). The company operates coal mines in Central Appalachia and supplies its products to steel producers both in the US and around the world.
In Q4 2024, Alpha Metallurgical Resources Inc (NYSE:AMR) reported a net loss of $2.1 million ($0.16 per diluted share) for the quarter. This is a huge decline from the $176.0 million net income reported in Q4 2023. Adjusted EBITDA came in at $53.2 million, down from $266.3 million in the same period last year. On the other hand, operating cash flow decreased to $56.3 million compared to $199.4 million in Q4 2023. The management reduced its 2025 volume guidance for metallurgical coal shipments to 14.5-15.5 million tons, the reason being weak metallurgical coal market conditions.
Despite the challenging financial posture, several institutional investors have strengthened their stakes in Alpha Metallurgical Resources Inc (NYSE:AMR). Russell Investments Group Ltd. boosted its position by 86.5% in Q4 2024, acquiring an additional 4,280 shares to bring its total ownership to 9,228 shares. Barclays PLC grew its holdings by 308.2% in Q3, adding 14,089 shares for a total position of 18,646 shares. Notably, 33 hedge funds and institutional investors, including RenTech, now own 84.29% of the company’s stock. Analysts hold a Moderate Buy opinion on the stock, and their 12-month average price target points to a 48.74% upside from current levels as of May 1.
3. Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)
Renaissance Technologies’ Stake Value: $143,502,154
Upside Potential as of May 1: 63.69%
Market Capitalization as of May 1: $7.193 Billion
Number of Hedge Fund Holders: 58
Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise company that operates several brands, including its main Norwegian Cruise Line and luxury brands like Regent Seven Seas Cruises and Oceania Cruises. It provides services such as on-board lodging, dining, entertainment, and shore excursions.
In Q1 2025, Norwegian Cruise Line (NYSE:NCLH) reported mixed financial results. Total revenue reached $2.1 billion, down about 3% compared to Q1 2024. The company attributed the decline to two factors: a 2% decline in capacity days related to increased dry-dock activities and a strategic reduction in passenger air participation rates. The cruise line posted a GAAP net loss of $40.3 million or ($0.09) per share, though its Adjusted EBITDA of $453 million exceeded guidance.
The company is investing heavily in fleet enhancements and new experiences to drive consumer demand. On April 28, 2025, the Norwegian Cruise Line subsidiary welcomed Norwegian Aqua, the first vessel in its cutting-edge Prima Plus Class. Meanwhile, on April 30, 2025, the Oceania Cruises subsidiary announced a sweeping revamp of its onboard entertainment program across its eight small luxury ships fleet. It introduced a new celebratory evening called “The Blue Horizons Party,” along with original production shows and immersive wellness experiences. On April 21, 2025, Loop Capital Markets analyst Laura Champine upgraded the stock from Hold to Buy while maintaining a $25 price target.
2. Abercrombie & Fitch Company (NYSE:ANF)
Renaissance Technologies’ Stake Value: $139,711,004
Upside Potential as of May 1: 78.81%
Market Capitalization as of May 1: $3.29 Billion
Number of Hedge Fund Holders: 51
Abercrombie & Fitch Company (NYSE:ANF) is a clothing retailer that designs and sells casual sportswear and accessories. It offers apparel and related products for men, women, and kids. The company operates through two brand segments: Abercrombie (including Abercrombie & Fitch and abercrombie kids) and Hollister (including Hollister and Gilly Hicks).
Abercrombie & Fitch Company (NYSE:ANF) reported $4.95 billion in net sales for the full year 2024, up 16% year-over-year. The growth resulted from a comparable sales expansion of 17%, with double-digit increases across all regions and brands. The Abercrombie brand family posted net sales growth of 16%, while the Hollister brand family grew net sales by 15%. As a result, the full-year operating margin came in at 15.0%, a 370 basis point improvement over 2023. Net income per diluted share touched $10.69, a 72% growth year-over-year.
The retailer continues to expand its physical retail footprint with strategically located stores. On April 28, 2025, the company opened its first location in Williamsburg, Brooklyn. The new 6,000-square-foot store spans two floors and features the brand’s complete women’s and men’s collections along with its activewear range, Your Personal Best (YPB). The Brooklyn opening follows recent international expansions in London and Hong Kong. On April 21, 2025, Barclays initiated coverage with an Equalweight rating and a price target of $71.00. According to the firm, Abercrombie & Fitch Company’s (NYSE:ANF) strong performance and growth opportunities balance against potential challenges to profitability.
1. Corcept Therapeutics Incorporated (NASDAQ:CORT)
Renaissance Technologies’ Stake Value: $312,347,555
Upside Potential as of May 1: 87.12%
Market Capitalization as of May 1: $7.51 Billion
Number of Hedge Fund Holders: 29
Corcept Therapeutics Incorporated (NASDAQ:CORT) is a pharmaceutical company that develops and markets medicines for serious health disorders related to excess cortisol. Its flagship product, Korlym (mifepristone), is used to treat high blood sugar in patients with Cushing’s syndrome. The company is also developing other drugs targeting cortisol-related conditions.
In Q4 2024, Corcept Therapeutics Incorporated’s (NASDAQ:CORT) annual revenue was $675.0 million, a 40% increase over the fiscal year 2023. The company posted a net income of $141.2 million for the full year, which translates to $1.23 diluted earnings per share compared to $0.94 in the previous year. According to CEO Joseph K. Belanoff, M.D., the solid performance arose from “a record number of new Korlym® prescribers and a record number of patients receiving Korlym in the quarter.”
Korlym aside, Corcept Therapeutics Incorporated (NASDAQ:CORT) is making substantial progress across its clinical development pipeline. The company submitted a New Drug Application (NDA) for relacorilant in hypercortisolism in December 2024. Additionally, the firm will present late-breaking data from its pivotal Phase 3 ROSELLA trial of relacorilant plus nab-paclitaxel in platinum-resistant ovarian cancer at the 2025 American Society of Clinical Oncology (ASCO) Annual Meeting on June 2, 2025. On April 3, 2025, Piper Sandler raised its price target to $131.00 from $128.00 while maintaining an Overweight rating on the stock. The firm said it based the decision on the announcement of successful Phase 3 ROSELLA study results in platinum-resistant ovarian cancer.
While we acknowledge the potential of Corcept Therapeutics Incorporated (NASDAQ:CORT) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CORT but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
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