Small-cap stocks have a history of outperforming the market during various economic cycles. Generally speaking, the sector is undercovered by Wall Street and represents some decent value in this bear market.

One great place to start looking for small cap ideas is in the portfolio of

Renaissance Technologies

, a quantitative-based hedge fund managed by Jim Simons.

Renaissance Technologies'

manager Jim Simons' flagship Medallion Fund is rumored to be up

as much as 49%

year-to-date. Renaissance Technologies uses complex trading algorithms to pick cheap and undervalued stocks. It has reportedly boasted returns 10% higher than the industry average.

Here are a few of Renaissance Technologies' small-cap positions.

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