Billionaire Jim Simons’ Top 5 Stock Picks

3. Pinduoduo Inc. (NASDAQ: PDD)

Value: $1,269,673,000
Percent of Jim Simons’ 13F Portfolio: 1.37%
Number of Hedge Fund Holders: 54

Pinduoduo is one of the largest ecommerce platforms in China, with over 700 million active buyers. The company went public in the U.S. in 2018, raising about $1.6 billion on its first day of trading. The company’s shares have gained a whopping 260% over the last 12 months.

Bernstein initiated a bullish coverage of Pinduoduo recently, citing a huge growth potential amid rising ecommerce sales in China.

There were 54 hedge funds in our database that held stakes in Pinduoduo at the end of the fourth quarter, compared to 34 funds in the third quarter. Renaissance Technologies owns 7.1 million shares of PDD worth $1.3 billion.

In the Q4 2020 Investor Letter, Tao Value highlighted a few stocks and Pinduoduo Inc. (NASDAQ:PDD) is one of them.

Here is what Tao Value said:

“Pinduoduo (ticker: PDD) reported a very strong Q3 2020, beating key KPIs all-around (GMV, active buyers & Revenue). It even surprisingly recorded the first non-GAAP profit (RMB466 million). Yet, the more important development is Duoduo Maicai, a new fresh grocery initiative. It is a natural extension of Pinduoduo’s deep root in agriculture e-commerce, and I think the logistic expertise it accumulated over years should help them compete. It is also a very nascent market, which attracts other tech giants (including Meituan & Alibaba). I will watch very closely on the developments.”