Billionaire Jim Simons’ Top Stock Holdings

RENAISSANCE TECHNOLOGIESThe “Quant King,” Jim Simons, founded Renaissance Technologies in 1982, growing AUM to ~$15 billion. Simons retired on January 1, 2010 but remains Renaissance’s nonexecutive chairman with a net worth of $10.7 billion. The fund utilizes complex computer modeling to identify and exploit inefficiencies in publicly-traded, preferably very liquid, securities. Given this overwhelmingly quantitative approach, Simons prefers to hire PhDs over MBAs. In fact, most of Renaissance employees do not have financial backgrounds but are mathematicians, physicists and statisticians. In 2011, Renaissance’s funds earned net returns as high as 33%.

Simons has one of the more unique backgrounds compared to his billionaire hedge fund manager peers. In1958, Simons received a bachelor’s degree in mathematics from the Massachusetts Institute of Technology (MIT) and a PhD also in mathematics, from the University of California, Berkeley at 23. He continued doing research at the Communications Research Division of the Institute for Defense Analyses (IDA), working as a code breaker for the US. Department of Defense during the Vietnam War. Later, Simons taught at a number of institutions before being appointed chairman of the math department at Stony Brook University.

Top 10 Holdings:

Company Ticker Value ($000s) Activity
MCDONALDS CORP MCD 465,180 112%
APPLE INC AAPL 441,640 -42%
BRISTOL MYERS SQUIBB CO BMY 438,426 102%
LILLY ELI & CO LLY 363,541 25%
GOOGLE INC GOOG 293,013 444%
PRICELINE COM INC PCLN 273,797 30%
INTEL CORP INTC 271,965 17%
MICROSOFT CORP MSFT 269,997 149%
CHIPOTLE MEXICAN GRILL INC CMG 264,092 -26%
MASTERCARD INC MA 255,730 92%

Renaissance made a few buys this quarter, though all on the smaller side and with not clear sector preference. The fund bought shares of Monster (NYSE:MNST), Time Warner (TWX), Research in Motion (RIMM), JC Penney (JCP), and CME Group (CME) amongst others. Renaissance also more than doubled holdings in McDonald’s (MCD), Bristol Myers (BMY), Google (NASDAQ:GOOG), and Microsoft (MSFT). Even though Coca-Cola (NYSE:KO) has dispelled the rumors of potentially acquiring MNST, we still think there are other catalysts to drive the stock. Other potential drivers include international revenue and cash generation/utilization. Regarding the former, we feel that MNST has room to increase international sales from the current 14% of total sales. As the company works out issues with distributors, the division should be able to be profitable either this year or next. Regarding cash, the company has ~$800 million in cash and equivalents and no debt. Aside from share buybacks, there are other opportunities to enhance the capital structure. Competitors like Dr Pepper Snapple (DPS), Jones Soda (JSDA), and the privately held Arizona Tea may be more attractive targets for KO. With PepsiCo (PEP) getting into the mid and low calorie soda market, KO may consider DPS more seriously as an acquisition target. DPS trades at 13.2x, a discount to MNST’s almost 30.0x forward earnings.

The fund’s top-weighted sectors are Technology, Consumer Services, and Healthcare. Renaissance Technologies is among the hedge funds that see deep value in mega-cap tech stocks like Apple (NASDAQ:AAPL), Microsoft, and Google. These are the top three most popular stocks among hedge funds (see the 10 most popular stocks). All of these stocks have huge piles of cash and trade significantly below their historical price multiples. Excluding cash Microsoft and Apple have single digit 2012 forward PE ratios. We are very bullish about these stocks over the long-term. Billionaire David Einhorn, Rob Citrone, and D.E. Shaw have positions in both Microsoft and Apple as well.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!