In this piece we will take a look at the ten stocks to buy under $20 according to Cliff Asness’ AQR Capital. If you want to skip the details about the hedge fund and jump ahead to the top five stocks in this list then take a look at the 5 Stocks to Buy Under $20 According to Cliff Asness’ AQR Capital.
AQR Capital Management is an investment firm based out of Greenwich, Connecticut, United States. It was founded by Cliff Asness, John Liew, and Robert Krail in 1998.
Mr. Asness, when compared to some of his other peers in the investment world, is relatively young. He is also one of the many who have blended mathematical and quantitative analysis with Wall Street and stock trading to reap billions of dollars in net worth. The executive, who is the managing principal of AQR Capital Management, was worth $1.4 billion as of April 2022 according to Forbes Magazine.
After being born in Queens, New York City in 1966, Mr. Asness went on to pursue his undergraduate studies at the University of Pennsylvania. Among his peers, he is also among the few that have a double major as their Bachelor’s, with the executive having received his double major bachelor’s degree from the university in 1988. After graduating with a Bachelor’s he would then proceed to pursue his doctorate degree and ended up completing his Ph.D. in finance from the University of Chicago in 1994.
During his time at the University of Chicago, Mr. Asness would formally enter the financial world, and later on, he would leave academia to accept a role to manage the investment bank Goldman Sachs’ quantitative research desk. He is also among the few in the hedge fund and investment fund world that has worked directly with a Nobel Prize winner. During his time at the bank, he and his cohorts would practically implement the ideas that they studied during their Ph.D. These would include using mathematical models for risk evaluation.
Mr. Asness would also become one of the first in the industry to employ what is dubbed today as high frequency trading. This involves making large trades in a short time period to make impressive returns. The fund that the now billionaire executive worked at in Goldman would become one of the most successful funds in investment banking history.
His journey at AQR Capital Management would start in 1998 when he would set the firm up alongside John Liew and Robert Krail. AQR, which stands for Applied Quantitative Research, would focus on the process of identifying stocks, instead of the stocks themselves. This would see the firm generate massive returns in a few short years after being founded. For instance, Mr. Asness’ investment firm would lead to him making $37 million in 2002 and $50 million only a year later in 2003.
According to Insider Monkey’s research, AQR Capital Management had a portfolio that was worth $55 billion as of the fourth quarter of last year. Some of the renowned stocks in its portfolio are Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG).
Cliff Asness of AQR Capital Management
Our Methodology
In order to decipher the inner workings of Mr. Asness’ mind when it comes to picking out cheap stocks, we scanned the hundreds of positions present in his firm’s investment portfolio as of the fourth quarter of last year. This enabled us to sift out the top ten companies, which were then studied through their analyst coverage, investor letters, earnings, large holdings, and hedge fund sentiment generated through Insider Monkey’s survey of 924 funds for Q4 2021.
10 Stocks to Buy Under $20 According to Cliff Asness’ AQR Capital
10. Telephone and Data Systems, Inc. (NYSE:TDS)
AQR Capital Management’s Stake Value: $17.6 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 20
Share price on April 25, 2022: $18.54
Telephone and Data Systems, Inc. (NYSE:TDS) is a telecommunications company headquartered in Chicago, Illinois, United States. It offers a host of products and solutions such as the Internet of Things (IoT), cellular networks, tablets, smartphones, and wearables.
Mr. Asness’ investment firm owned 874,300 Telephone and Data Systems, Inc. (NYSE:TDS) shares by the end of the fourth quarter of last year. These were worth $17.6 million and they represented 0.03% of its investment portfolio. Insider Monkey’s Q4 2021 survey of 924 hedge funds revealed that 20 had also invested in the firm.
Telephone and Data Systems, Inc. (NYSE:TDS) brought in $1.37 billion in revenue and $0.11 in GAAP EPS for its fiscal Q4, in a strong set of results that saw it beat Wall Street analyst estimates for both. Morgan Stanley reduced the company’s price target to $22 from $33.5 in April 2022, highlighting that tower monetization was slower than expected.
Telephone and Data Systems, Inc. (NYSE:TDS)’s largest investor is Mario Gabelli’s GAMCO Investors which owns 1.7 million shares worth $35 million.
Telephone and Data Systems, Inc. (NYSE:TDS) joins Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Alphabet Inc. (NASDAQ:GOOG) in the list of AQR Capital Management’s top stock picks.
9. Mobile TeleSystems Public Joint Stock Company (NYSE:MBT)
AQR Capital Management’s Stake Value: $18.8 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 10
Share price on April 25, 2022: $5.5
Mobile TeleSystems Public Joint Stock Company (NYSE:MBT) is a Russian telecommunications services provider. It is headquartered in Moscow, Russia, and offers broadband internet, television access, financial technology services, voice and telephony services, and equipment and other accessories.
For its latest fiscal year, Mobile TeleSystems Public Joint Stock Company (NYSE:MBT) reported RUB534 billion in revenue and RUB63.5 billion in net profit. Its revenue marked a small annual growth of 8%. The company’s shares were battered earlier this year after the YANDEX dropped 54% in value due to the aftermath of the Russian invasion of Ukraine.
AQR Capital Management owned 2.3 million Mobile TeleSystems Public Joint Stock Company (NYSE:MBT) shares by the end of 2021’s final quarter. These were worth $18.8 million and represented 0.03% of its investment portfolio. Insider Monkey surveyed 924 hedge funds for the same time period and discovered that 10 had also invested in the company.
Jim Simons’s Renaissance Technologies is Mobile TeleSystems Public Joint Stock Company (NYSE:MBT)’s largest investor according to Insider Monkey’s research. It owns 21 million shares that are worth $168 million.
8. JetBlue Airways Corporation (NASDAQ:JBLU)
AQR Capital Management’s Stake Value: $18.9 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 34
Share price on April 25, 2022: $12.77
JetBlue Airways Corporation (NASDAQ:JBLU) is an American airline based out of New York. The company has a diverse fleet of aircraft, consisting of planes such as the Airbus A321. A220, and Embraer E190.
For its fourth quarter of 2021 investment portfolio, AQR Capital Management held 1.3 million JetBlue Airways Corporation (NASDAQ:JBLU) shares which were worth $18.9 million and represented 0.03% of its investment portfolio. Insider Money’s Q4 2021 poll of 924 hedge funds outlined that 34 had also bought the company’s shares.
JetBlue Airways Corporation (NASDAQ:JBLU) reported $1.8 billion in revenue and -$0.36 in non-GAAP EPS for its fourth fiscal quarter, beating analyst estimates for both. Deutsche Bank reduced its share price target to $16 from $21 in April 2022, outlining that an improving demand backdrop might mitigate headwinds.
JetBlue Airways Corporation (NASDAQ:JBLU)’s largest investor is Jim Simons’s Renaissance Technologies which owns 2.4 million shares worth $35 million.
7. The Western Union Company (NYSE:WU)
AQR Capital Management’s Stake Value: $18.9 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.03%
Number of Hedge Fund Holders: 28
Share price on April 25, 2022: $18.69
The Western Union Company (NYSE:WU) is a money transfer and payments services provider which is also one of the oldest companies in the world, after being founded in 1851 in the United States. The company’s outlets allow its customers to make international transfers in a wide variety of countries globally.
The Western Union Company (NYSE:WU) raked in $1.2 billion in revenue and $0.64 in non-GAAP EPS for its fiscal fourth quarter, for a mixed set of results that saw the firm miss analyst revenue estimates but beat them for the EPS. At the same time, the firm announced that it had approved a $1 billion share buyback program.
Mr. Asness’ investment firm held an $18.9 million stake in The Western Union Company (NYSE:WU as Q4 2021 came to an end. This came through one million shares and it represented 0.03% of the firm’s investment portfolio. During the same time period, 28 of the 924 hedge funds part of Insider Monkey’s portfolio had also invested in the company.
Ken Griffin’s Citadel Investment Group is The Western Union Company (NYSE:WU)’s largest investor via a $44 million stake that comes through holding 2.5 million shares.
6. Xerox Holdings Corporation (NASDAQ:XRX)
AQR Capital Management’s Stake Value: $24.6 million
Percentage of AQR Capital Management’s 13F Portfolio: 0.04%
Number of Hedge Fund Holders: 23
Share price on April 25, 2022: $17.58
Xerox Holdings Corporation (NASDAQ:XRX) is an American technology company that is involved primarily in the business of manufacturing and selling printers. It is also one of the oldest firms of its kind, after being formed in 1906.
By the end of its fiscal first quarter, Xerox Holdings Corporation (NASDAQ:XRX) had managed to bring in $1.6 billion in revenue and -$0.12 in non-GAAP EPS, beating analyst revenue estimates but missing them for EPS. Citi lowered its price target to $15 from $17 in April 2022, stating that recent trends of the reduction in remote work are impacting the company’s recent strategies.
AQR Capital Management’s stake in Xerox Holdings Corporation (NASDAQ:XRX) was worth $24.6 million by the end of the three months ending in December 2021. It came through the firm owning one million shares and represented 0.04% of its investment portfolio. Insider Monkey studied the investments of 924 hedge funds for the same time period and discovered that 23 had also invested in the firm.
Xerox Holdings Corporation (NASDAQ:XRX)’s largest investor is John Overdeck and David Siegel’s Two Sigma Advisors which owns 2.8 million shares that are worth $65 million.
Alongside other tech names such as Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Xerox Holdings Corporation (NASDAQ:XRX) is a top Cliff Asness stock pick.
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Disclosure: None. 10 Stocks to Buy Under $20 According to Cliff Asness’ AQR Capital is originally published on Insider Monkey.
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