CBOE Holdings, Inc (CBOE), The Wendy’s Co (WEN) & More: Horizon Asset Management’s Small Cap Picks

CBOE Holdings (NASDAQ:CBOE), which operates market exchanges, was another of Horizon’s small cap picks. In the fourth quarter of 2012, the company’s revenue grew by 8% versus a year earlier and combined with wider margins this pushed net income up by 25%. However, the market is already pricing in significant growth at CBOE Holdings (NASDAQ:CBOE) going by the fact that the trailing earnings multiple is 21; at that valuation, we’d like to see revenue numbers doing better. Renaissance Technologies, whose founder Jim Simons is now a billionaire, added shares to its portfolio between October and December (find Renaissance’s favorite stocks).