Hedge Fund Renaissance Technologies’ Tech Picks Include Qualcomm

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Renaissance disclosed ownership of 8.2 million shares of Linear Technology Corporation (NASDAQ:LLTC), an $8.7 billion market cap designer of integrated circuit products. Growth was very modest in the company’s most recent quarter compared to the same period in the previous fiscal year, with neither revenue nor net income changing by more than 4%, yet the trailing earnings multiple is higher than 20. First Eagle Investment Management was another major shareholder of Linear Technology, with over 14 million shares in its portfolio.

The investment team liked Priceline.com Inc (NASDAQ:PCLN), more than tripling their stake in the travel website to about 390,000 shares. Priceline has been an excellent growth story over the last several years, and in the fourth quarter of 2012 both revenue and earnings were over 20% higher from their levels a year earlier. The stock carries trailing and forward P/Es of 25 and 15, respectively. A number of Tiger Cub funds, including billionaire Stephen Mandel’s Lone Pine Capital, have Priceline as one of their largest holdings (research more stocks Mandel likes).

Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM) rounds out our list of Renaissance’s top stock picks from the technology sector. The stock is at least a potential value prospect, given its earnings multiples in the teens and the fact that both revenue and earnings have been up strongly- as with Priceline, each grew more than 20% over the last year. Cliff Asness’s AWT Capital Management increased its holdings of Taiwan Semiconductor Manufacturing between October and December to a total of 3.2 million shares (see more stocks Asness was buying).

Disclosure: I own no shares of any stocks mentioned in this article.

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