Quant billionaires John Overdeck and David Siegel’s quant hedge fund Two Sigma has extended losses during the first quarter of this year. The firm’s flagship Spectrum fund fell almost 2% year to date while the global macro Compass fund plunged 13% and the Absolute Return fund dipped 3%. Losses were initially blamed on volatility amid the onslaught of Reddit and retail investors.
Two Sigma Advisors, which was considered one of the best performing quant hedge funds over the last two decades, has also been struggling due to exceptional market trends.
Here is a summary of their 10 Best Stocks To Buy Now.
The firm first initiated a position in the video calling company Zoom Video Communications, Inc. in Q4 of 2019. The share price of Zoom fell significantly in the December quarter and extended the downtrend into 2021. Its shares are down 33% in the last six months. Shares of Merck & Co. Inc. fell more than 4% during the first quarter of 2020. It is one of the permanent members of Two Sigma Advisors’ stock portfolio since 2010.
Two Sigma lowered its position in Abbvie Inc. during the fourth quarter by 15% to 3.65 million. The firm first initiated a position in the health care company in 2013. Following a strong rally in the December quarter, shares have underperformed so far in 2021. The share price of Home Depot, Inc. accelerated the upside momentum into 2021. Its shares are up close to 60% in the last twelve months. The firm first initiated a position in Home Depot in 2013.
Target Corporation continues to generate big returns for investors in 2021. Its shares rose 15% year to date and are up 109% in the last twelve months. Strong revenue growth trends are backing TGT share price. Two Sigma Advisors has been holding a stake in Visa, Inc. since 2016. Visa stock price recovered strongly during the second half of 2020, but its shares are struggling to sustain those gains in 2021.
Amazon.com’s stock price underperformed during the first quarter of this year due to a broader correction in tech stock prices. Two Sigma increased its position by 83% during the December quarter. Cisco Systems Inc. is currently the third-largest stock holding of the quant fund Two Sigma. Shares of Cisco Systems grew 15% year to date amid prospects for sales growth on economic reopening.
Facebook, Inc. share price has been struggling this year after generating robust gains in 2020. Two Sigma Advisors increased its stake by 124% during the December quarter to 1.7 million shares. Shares of Microsoft Corporation extended the upside momentum into 2021 on the back of sharp financial growth projections. The tech giant also offers hefty dividends to investors. The hedge fund held more than 3 million shares representing 1.82% of the overall portfolio.
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