Here is Why Jim Simons is Beating the Market This Year

Jim Simons is one of the richest men on the planet. The reason is his high performing and highly envied hedge fund, Medallion Fund, which has not realized negative returns since 1990. Jim Simon’ Medallion Fund is the best hedge fund Insider Monkey has come across. In 2007, Simons returned 73% and in 2008 he returned 80%. The return is exceptional as such incomparably high returns were realized during the time of the financial crisis. We believe if he had started investing 20 years before he did, he would be the richest man on this planet today.

RENAISSANCE TECHNOLOGIES

Jim Simons exploits market inefficiencies through high frequency trading. He makes use of algorithms to assist in execution of large orders. Consequentially, Medallion faces high expenses and transactions costs. This explains the higher than average performance fee of 44% that Medallion charges. However, the 44% fee is quite irrelevant considering the fact that the fund’s investors are current and past employees and their families. Jim Simons is the largest investor of Medallion and owns approximately 25-50 percent of Renaissance Technologies.

Jim Simons currently manages $24.85 billion. In the first quarter of 2011, Jim Simons reduced Lorillard Inc (LO) by 38%, Apple (AAPL) by 58%, Chipotle Mexican Grill (CMG) by 28%, and Google Inc (GOOG) by 27%. Since the end of March 2011, Lorillard Inc (LO) returned 12%, Apple (AAPL) returned 7.2%, and Chipotle Mexican Grill (CMG) gained 14.4% while Google Inc (GOOG) lost 1.3%. Here are Jim Simons’ top 20 stock positions at the end of March:

Johnson & Johnson (JNJ) makes up the largest portion of Jim Simons’ diversified portfolio. He increased JNJ by 21% in the quarter ending March 2011. He currently has 6.69 million shares of the company worth $396 million. JNJ returned 6.8% since the end of March. He has the largest position in the company after Warren Buffet. Warren Buffet’s Berkshire Hathaway has 42.62 million shares of JNJ, worth $2.5 billion. JNJ is among Warren Buffet’s top 10 holdings (See Buffet’s other bullish stocks).

In the first quarter of 2011, Jim Simons purchased Target Corp. As of now, he has 3.82 million shares of the company worth $191.4 million. Target returned -2.3% since March 2011. He has the largest position in Target Corp. The company makes up 0.77% of Simons’ current portfolio. Larry Robbins’ Glenview Capital has the second largest position. Robbins increased his Target holdings by 18% in the first quarter of 2011 (check out Larry Robbins’ top 20 stock holdings).

Lorillard (LO) returned 12% since the end of March. Jim Simons has the largest position in the company with 2.7 million shares valued at $256.7 million. Despite the decrease of Lorillard by 38% by Jim Simons in the first quarter, the company still makes up 1.03% of his portfolio. He also has the largest position in the company. Jean-Marie Eveillard’s First Eagle Investment Management has the second largest position with 2.29 million shares of Lorillard (see Jean-Marie Eveillard’s top stock picks).

Alcon Inc (ACL) was a merger arbitrage play which was acquired in April. Therefore, Alcon’s return is for only a few days. However, his remaining 19 stocks returned 0.3% since the end of March vs. a 9% loss for SPY. Jim Simons is very successful at picking winners this year. This is why he is beating the market. Keeping in mind his current and previous performance, we believe investors can beat the market by imitating his impressive stock picks.

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

Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top 6 Tax Scams and How to Protect Yourself

Top Businesses to Invest In

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!