I have dreamt more than once, like many others, about having access to Jim Simons’ investment formula, to his extremely complex mathematical models. As this is not an actual option, tracking his moves might be the second-best alternative. So, in this article, I will take a look at some of Renaissance Technologies’ most important moves over Q1 2014 (declared in the recently filed Form 13F).
As it is usual amongst major funds, Renaissance Technologies’ focus on technology and services stocks continued through the first quarter. These two segments account for half of its portfolio’s value. One of the fund’s largest bets was recently placed on Apple Inc. (NASDAQ:AAPL), a $505 billion market cap computer and devices maker that needs no introduction whatsoever. Over the first fiscal quarter, Simons started a position with 821,362 shares, worth more than $440 million. This holding accounts for approximately 1% of the fund’s equity portfolio, and stands as its eighth most valuable one.
However, a few funds hold even larger stakes at the tech company. For instance, Carl Icahn’s Icahn Capital Lp, upped its wager on the company by 59% over Q1, and now owns more than $4 billion in stock.
Simons’ bets on tech do not stop at Apple. Another tech about which this guru seems to feel confident is Intel Corporation (NASDAQ:INTC), a $128 billion market cap semiconductor chip maker that develops integrated digital technology products. Over Q1, Renaissance Technologies increased its position in the stock by 23%, and now owns about 14 million shares, worth more than $360 million.
However, Simons’ bet is smaller when compared to Harris Associates’ 66.857 million shares, worth about $1.725 billion, or Jean-Marie Eveillard’s First Eagle Investment Management’s 38 million shares, up 8% in relation to Q4 2013. I should also mention that Clint Carlson’s Carlson Capital also started, over Q1, a position in the stock, worth more than $100 million.
Finally, within the services segment, there’s Verizon Communications Inc. (NYSE:VZ), a $203 billion market cap provider of communications, information and entertainment products and services in which Simons has almost half a billion dollars invested. Over the first fiscal quarter, his fund increased its stakes by 78%, and now holds about 10 million shares. Another investment guru that also seems to feel quite bullish about this company is, the one and only, Warren Buffet, who has also invested about half a billion dollars in it. As we reported in a previous article, this is Mr. Buffett’s largest new position for Q1.
Renaissance Technologies is a New York-based hedge fund founded in 1982 by Jim Simons, a math Ph.D. One of his funds, the Medallion Fund is considered to be one of the most successful hedge funds in the industry, with returns so high that fees (fixed and performance-based) almost reach 50%. Its portfolio is worth more than $41 billion, and comprises about 3,000 different stocks.
Disclosure: Javier Hasse holds no position in any stocks mentioned.