Renaissance Technologies is one of the most famous hedge funds in the world, with over $130 billion worth of assets under management as of the end of last year. The fund is managed by former cold war codebreaker Jim Simons. Let’s take a look at some of the most famous stocks on which the hedge fund is bullish on.
Sprint Corp (NYSE: S)
Renaissance Technologies acquired more than 21 million shares of Sprint in the fourth quarter of 2018, ending the period with a whopping 32.57 million shares of the company, having a total worth of $189.59 million. Currently, investors are on tenterhooks, awaiting the approval of Sprint’s merger with T-Mobile US. If the merger deal goes through, Sprint could enjoy a massive growth potential, including prospects in the 5G industry. The stock is currently showing signs of weakness amid all the risks and uncertainty around the deal. However, the risk-reward factor is huge.
Micron Technology, Inc. (NASDAQ: MU)
Renaissance bought 4.6 million shares of semiconductor giant Micron in the fourth quarter of last year. The total worth of the hedge fund’s stake in the company now stands at $146.64 million. The stock isn’t having a good time these days, following the investment firm’s downgrade. Cowen’s analyst Karl Ackerman said that Micron’s profitability could dip in 2020. The analyst also thinks that trough (declines) in the NAND and DRAM industry is just a few quarters away. It’s important to note that Micron stock was also downgraded by Morgan Stanley recently. The firm believes that expectations for earnings beat this quarter seem too optimistic.
Momo Inc (NASDAQ: MOMO)
Renaissance bought 3.96 million shares of Momo in the fourth quarter. Momo stock jumped in March after the company surpassed expectations in the fourth quarter of 2018. Momo’s revenue in the quarter jumped by a whopping 50%. Investment firm Morgan Stanley upgraded Momo stock from Equal-Weight to Overweight and increased its price target for the company to $44 from $11. Morgan Stanley said that Momo’s macro impact was better than feared and expects the company to earn more than average revenue per user. Momo is a video and social platform with huge growth potential. Online dating is one of the biggest catalysts for Momo, as the company owns Tantan, a dedicated online dating app that licenses some of Tinder’s features from its parent Match Group.
Cloudera Inc (NYSE: CLDR)
Renaissance Technologies bought over 3.1 million shares of Cloudera in the fourth quarter. Earlier in April, Cloudera was given a bullish rating by analyst firm Bernstein, which also upgraded the stock to Outperform from Market Perform. The firm has a price target of $15 for the Cloud and software company. Analyst Zane Chrane said that Cloudera will benefit from its merger with Hortonworks. In late March, Rosenblatt analyst recommended investors to buy the stock ahead of the company’s release of common data platform in the second half of this year.
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The author does not have an investment in stock discussed in this article.