This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Invest Like a Quant: 5 New Trades From Renaissance Technologies

Stock quotes in this article: CMCSA, AAPL, CAG, COP, C

BALTIMORE ( Stockpickr) -- Want to invest like the smartest hedge fund in the world? Ignore value and balance sheets and let your computer do the hard work for you.

No, that's not a joke.

Founded by mathematics professor Jim Simons in 1982, Renaissance Technologies boasts one of the best track records in investment history. In the 1990s, the flagship Medallion fund earned record-breaking cumulative returns of 2,478%. And more recently, the firm's 2009 performance gave it the top ranking for large fund performance.

>>5 Stocks Warren Buffett Is Buying

RenTec is a quant shop, which means that the firm uses computer models to figure out which stocks it should add to its massive $38 billion equity portfolio. Rather than looking for value stories, the firm's models hone in on trends in price action and statistical relationships between securities. That quantitative bent requires a serious brain trust, and Renaissance has it.

Of the firm's 150 people, around half hold PhDs in scientific fields -- physicists and statisticians aren't exactly the demographics you'd find at most Wall Street firms. But that focus on hiring the smartest unconventional thinkers has helped fuel some of the biggest gains in the industry.

By looking at RenTec's 13F filing with the SEC, we can get a partial peek at some of the big relationships that the firm is putting to work for its institutional and internal investors -- without paying the 5% management fee and 44% profit participation that the firm charges its clients.

>>5 Stocks Under $10 Hedge Funds Love

With that, here's a glimpse at five of the new names that Renaissance Technologies added to its portfolio in the second quarter.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs