Jim Simons Stock Portfolio: 10 Biggest Healthcare Stocks

Published December 31, 2022 at 5:52 pm EST Updated September 7, 2026 at 2:36 pm EDT

In this article we take a look at Jim Simons Stock Portfolio: 10 Biggest Healthcare Stocks.

Gilead Sciences, Inc. (NASDAQ:GILD), Novo Nordisk A/S (NYSE:NVO), and Molina Healthcare, Inc. (NYSE:MOH) are three of the healthcare companies that Jim Simons’ quant fund has identified as having bright future prospects.

Jim Simons’ Renaissance Technologies is one of the biggest money managers in the world, with assets under management of more than $130 billion as of April 2021. The renowned quantitative fund is one of the most fascinating success stories in the history of finance, being founded and shaped by Simons and others with academic/mathematical backgrounds and zero stock trading experience.

Jim Simons’ stock portfolio is guided by advanced mathematic, or quantitative, models, which sift through massive amounts of data to pinpoint obscure correlations that can then be profited from. And boy, has the fund ever profited from them.

Renaissance’s flagship Medallion fund, which is named in honor of the math awards Simons has won, including the AMS Oswald Veblen Prize in Geometry in 1976, has been the most successful fund in history, returning an absurd 66% before fees on an annualized basis between 1988 and 2018 and generating more than $100 billion in trading profits. The fund also returned 76% in 2020 despite the dramatic market upheaval unleashed by the Covid-19 pandemic. The Medallion fund is currently closed to outside investors.

Jim Simons’ stock portfolio has traditionally had large exposure to the healthcare sector, suggesting the fund’s mathematical models are more bullish on the long-term prospects for healthcare stocks than for any other industry. At the end of September, the fund had 18.5% exposure to healthcare stocks in its $70.7 billion 13F portfolio, trailing tech stocks by just five basis points in terms of overall exposure. The fund doesn’t have more than 10% 13F exposure to any other sector.

In this article we’ll take a look at the ten healthcare stocks that Renaissance Technologies likes the most from an industry it’s been extremely bullish on for years.

Jim Simons Stock Portfolio: 10 Biggest Healthcare Stocks

Jim Simons of Renaissance Technologies

Our Methodology

The following data about Jim Simons’ stock portfolio is gathered from Renaissance Technologies’ latest 13F filing with the SEC. We follow hedge funds like Renaissance Technologies because Insider Monkey’s research has uncovered that their consensus stock picks can deliver outstanding returns.

All hedge fund data is based on the exclusive group of 900+ funds tracked by Insider Monkey that filed 13Fs for the Q3 2022 reporting period.

Jim Simons Stock Portfolio: 10 Biggest Healthcare Stocks

10. Biogen Inc. (NASDAQ:BIIB)

Value of Renaissance Technologies’ 13F Position: $308 million

Number of Hedge Fund Shareholders: 72

Jim Simons’ quant fund has at least $480 million invested in each of Molina Healthcare, Inc., Gilead Sciences, Inc., and Novo Nordisk A/S, which rank among his top healthcare picks. The Jim Simons stock portfolio also has a significant $308 million position in Biogen Inc. (NASDAQ:BIIB), though it did cut the size of its holding by 26% during Q3 to 1.15 million shares.

A lot is riding on the progress of Biogen Inc.’s Alzheimer’s treatments, namely Lecanemab, which has showed the ability to slow the progression of the disease. That’s in contrast to Biogen’s other Alzheimer’s treatment Aduhelm, which was significantly hyped in 2021 for its ability to reduce amyloid beta plague, which is considered a contributor to Alzheimer’s. However, that treatment nonetheless failed to demonstrate any improvement or slowing of Alzheimer symptoms in patients. The Alzheimer’s market is projected to be worth as much as $25 billion by 2029.

ClearBridge Investments discussed the recent trial results of Biogen Inc.’s Lecanemab in its Q3 2022 investor letter:

“Biogen Inc. was the leading contributor among several biopharma names, boosted by positive, pivotal clinical data for its next-generation Alzheimer’s treatment Lecanemab. In a pivotal trial, the drug proved safe and efficacious in slowing progression of Alzheimer’s disease.”

9. AstraZeneca PLC (NASDAQ:AZN)

Value of Renaissance Technologies’ 13F Position: $318 million

Number of Hedge Fund Shareholders: 44

Jim Simons made just a minor tweak to his fund’s AstraZeneca PLC (NASDAQ:AZN) holding during Q3, trimming it by 2% to just under 5.8 million shares. AZN shares had a big Q4, gaining 24%, which lifted them to 16% gains for the year.

One of the 5 Biggest European Pharmaceutical Companies, AstraZeneca PLC has a much more stable revenue base than Biogen and an equally promising pipeline of treatments, with no less than 18 phase 3 trials expected to produce results in 2023, the bulk of which are in oncology. Those are in addition to the company’s promising breast cancer treatment Enhertu, which demonstrated a significant improvement in overall survival compared to chemotherapy in a phase 3 trial.

Carillon Tower noted that foreign currency headwinds, among other things, weighed on AstraZeneca PLC shares in Q3, as discussed in the fund’s Q3 2022 investor letter:

“AstraZeneca PLC’s relatively high exposure to international end markets and foreign currencies in the face of rising global macroeconomic concerns drove stock underperformance. Increasing industry focus on over-the-counter drug litigation, where the company has modest exposure, also may have weighed on shares.”

8. Incyte Corporation (NASDAQ:INCY)

Value of Renaissance Technologies’ 13F Position: $323 million

Number of Hedge Fund Shareholders: 39

Renaissance Technologies trimmed the size of its Incyte Corporation (NASDAQ:INCY) position by 6% during Q3, with Jim Simons’ stock portfolio ending the quarter with nearly 4.85 million shares. Several hedge funds added INCY to their 13F portfolios during Q3 following a moderate sell off of the stock during the prior two quarters. Paul Marshall and Ian Wace’s Marshall Wace LLP and Noam Gottesman’s GLG Partners built two of the largest new stakes in INCY during the third quarter.

Incyte Corporation is another biotech with a focus on oncology, including its treatment for bone marrow disorders, Jakafi, which comprise the bulk of the company’s sales right now. Back in 2019, the company predicted that Jakafi could hit $2.5 billion to $3 billion in sales by 2026 and those projections may end up being extremely modest.

In Q3, Jakafi pulled in $620 million in revenue, up 13% year-over-year, while Incyte Corporation as a whole had $713 million in sales. The company is guiding for as much as $2.4 billion in sales for Jakafi in its fiscal year 2022. The company also has some intriguing prospects in the dermatology space, including treatments for both atopic dermatitis and vitiligo.

7. Eli Lilly and Company (NYSE:LLY)

Value of Renaissance Technologies’ 13F Position: $328 million

Number of Hedge Fund Shareholders: 75

Jim Simons made a sizable investment in Eli Lilly and Company (NYSE:LLY) during Q3, raising the size of his stake in the company by more than 150% to over 1.01 million shares. Other hedge funds have also been buying up LLY in droves recently, as there’s been a 36% jump in the number of funds long LLY over the past two quarters.

Eli Lilly and Company also has a promising Alzheimer’s treatment in development called donanemab, which has shown greater efficacy than Biogen’s Aduhelm when it comes to clearing beta amyloid plague from the brain. However, it’s still early days for the trial and it will need to show improvement in slowing the progression of symptoms, which Aduhelm failed to demonstrate. That aside, Eli Lilly also has a robust pipeline of diabetes and other drugs, including future blockbuster Mounjaro.

The ClearBridge Global Growth Strategy added Eli Lilly and Company and its promising portfolio of diabetes drugs to its 13F portfolio in Q3, as the fund revealed in its Q3 2022 investor letter:

“In the U.S., we initiated a position in pharmaceutical maker Eli Lilly as it brings out new drug candidates for diabetes and Alzheimer’s disease. New drugs impact diabetes but have also demonstrated significant weight loss for patients who are overweight and have other co-morbidity issues as a result. Lilly is one of the two key players in diabetes care and we believe the potential market opportunity is much higher than the consensus forecasts as we are seeing evidence of accelerating adoption.”

6. Merck & Co., Inc. (NYSE:MRK)

Value of Renaissance Technologies’ 13F Position: $393 million

Number of Hedge Fund Shareholders: 82

Closing out the first half of the ten biggest healthcare stock picks in Jim Simons’ stock portfolio is Merck & Co., Inc.. The billionaire money manager cut his fund’s MRK stake by 33% during Q3, leaving it with over 4.56 million shares. Merck has had remarkably steady hedge fund ownership in recent years, with between 72 and 89 funds long MRK every quarter since Q4 of 2015.

As one of the 5 Best Diabetes Stocks To Buy Now, Merck & Co., Inc. is competing head-to-head with Eli Lilly for supremacy in the huge diabetes market, which is forecast to top $54 billion in revenue by 2030. The company has a blockbuster treatment of its own in the form of type 2 diabetes drug Januvia, which pulled in $5.3 billion in sales in 2021. However, the company loses patent exclusivity on the treatment in January 2023, though there are currently no generic versions of it available. Merck has plenty of possibilities in its pipeline to replace any waning Januvia sales, as it has 112 programs in phase 2 or 3 clinical trials as of August 2, 2022.

Carillon Tower Advisers discussed the recent performance of its Merck & Co., Inc. investment in the fund’s Q2 2022 investor letter:

“Merck & Co., Inc. reported a strong first quarter and raised its financial guidance for 2022. The company also continues to benefit from the recent rotation into pharmaceuticals, which historically has been a more defensive industry.”

See where Novo Nordisk A/S, Molina Healthcare, Inc., and Gilead Sciences, Inc. rank in Jim Simons’ stock portfolio by clicking the link below.

5. Molina Healthcare, Inc. (NYSE:MOH)

Value of Renaissance Technologies’ 13F Position: $483 million

Number of Hedge Fund Shareholders: 40

Jim Simons’ RenTech scaled back the size of its Molina Healthcare, Inc. holding by 15% during Q3, leaving the quant fund with over 1.46 million shares entering the final quarter of 2022. Molina Healthcare hit an all-time high in hedge fund ownership during Q3, with Lee Ainslie’s Maverick Capital and Steve Cohen’s Point72 Asset Management among the funds adding MOH to their portfolios during Q3.

The global health insurance market is a gigantic one, being estimated to hit $3.6 trillion by 2028, and Molina Healthcare, Inc. is one of the biggest players in the United States with 5.2 million customers. The company’s adjusted diluted EPS grew by 54.1% year-over-year to $4.36 in Q3, and the company anticipates double digit EPS growth over the next three years.

In December, Bank of America analyst Kevin Fischbeck upgraded Molina Healthcare to ‘Neutral’ from ‘Underperform’ and expressed confidence that the company will be able to achieve its projected 13% to 18% annual EPS growth through 2025. He has a $388 price target on the stock.

Renaissance Investment Group (which is not affiliated with Renaissance Technologies) made the following comment about Molina Healthcare, Inc. in its Q3 2022 investor letter:

“Lastly, Molina Healthcare, Inc. returned 18.0% after reporting strong quarterly results that saw solid membership growth and a favorable medical cost environment. The stock also benefited from a rotation to companies with more stable and predictable business models, a desirable attribute in the current economic environment.”

4. United Therapeutics Corporation (NASDAQ:UTHR)

Value of Renaissance Technologies’ 13F Position: $534 million

Number of Hedge Fund Shareholders: 46

Jim Simons’ quant fund trimmed the size of its United Therapeutics Corporation (NASDAQ:UTHR) stake by 9% during Q3, owning 2.55 million UTHR shares on September 30. Only one fund among the select group of money managers tracked by Insider Monkey’s database had a larger position in United Therapeutics than Renaissance Technologies, that being Behzad Aghazadeh’s VenBio Select Advisor, which owned 2.93 million shares and had 11.3% 13F exposure to the stock.

United Therapeutics Corporation has a portfolio of drugs that focus on mitigating the effects of hypertension, particularly in those looking to exercise or perform other strenuous activities. Strong sales for hypertension treatment Tyvaso helped propel the company to 16% quarter-over-quarter sales growth in Q3, with overall sales hitting $516 million.

Analysts seem to be split on United Therapeutics Corporation’s near-term potential. On the one hand, analysts’ consensus 2023 earnings estimates have jumped by nearly 50% to $2.83 in recent months. On the other hand, Goldman Sachs recently slapped a ‘Sell’ rating and $230 price target on the stock ($48 below its current price), citing a lack of growth drivers.

3. Gilead Sciences, Inc. (NASDAQ:GILD)

Value of Renaissance Technologies’ 13F Position: $618 million

Number of Hedge Fund Shareholders: 56

Renaissance Technologies went on a Gilead Sciences, Inc. buying spree during Q4 2021 and Q1 2022, but has sold off about a third of its position over the past two quarters, including cutting its stake by 26% during Q3 to just over 10 million shares. Gilead no longer ranks close to the top healthcare stocks in terms of hedge fund ownership as it did several years ago, with the number of funds long GILD currently languishing near all-time lows.

Hedge funds may be scared off by Gilead Sciences, Inc.’s substantial long-term debt burden, which currently weighs in at $25 billion. And with the company paying out 40% of its cash flow to investors in the form of dividend payments, that leaves less available to tackle that debt burden. Gilead does have promising growth prospects, including an oncology business that grew sales by 79% during the first nine months of 2022.

Ariel Investment discussed Gilead Sciences, Inc.’s long-term opportunity in virology in its Q3 2022 investor letter:

“At the stock level, biopharmaceutical company Gilead Sciences, Inc. was the top contributor in the quarter based on positive data released in a study evaluating Trodelvy versus comparative chemotherapy in patients with metastatic breast cancer. The detailed findings increased investor confidence the drug would receive incremental approvals for a broader range of breast cancer treatments. Shares also received a boost on news the TAF patent portfolio for HIV drugs will be extended from the middle of this decade through the early 2030s, thereby lengthening the company’s long-term opportunity in the virology market.”

2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Value of Renaissance Technologies’ 13F Position: $619 million

Number of Hedge Fund Shareholders: 49

Jim Simons boosted RenTech’s stake in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) by 22% during Q3 to 2.14 million shares, elevating the stock to his second-largest healthcare position and sixth-largest holding overall. VRTX shares had a strong 2022, gaining 30%, which prompted some profit-taking from other money managers, as the number of funds long Vertex Pharmaceuticals fell by 22% during the first three quarters of the year.

Vertex Pharmaceuticals Incorporated is the leading cystic fibrosis company in the world, with four prominent treatments in the space, including Trikafta, which was launched in 2019 and had already pulled in $5.6 billion in revenue just two years later. Vertex’s pipeline is also poised to help the company expand into other treatment areas, including diabetes, pain management, and blood disorders like beta thalassemia and sickle cell disease.

ClearBridge Investments discussed some of the recent developments in Vertex Pharmaceuticals Incorporated’s pipeline in its Q3 2022 investor letter:

“Vertex Pharmaceuticals Incorporated, which has developed the leading treatments for cystic fibrosis, also saw meaningful positive developments in its pipeline in the third quarter around areas like pain, diabetes and blood disorders. Vertex has been able to consistently grow revenues and earnings through the latest period of economic headwinds, enabling investment in R&D to target treatments in these new areas.”

1. Novo Nordisk A/S (NYSE:NVO)

Value of Renaissance Technologies’ 13F Position: $1.53 billion

Number of Hedge Fund Shareholders: 40

Topping the list of Jim Simons’ biggest healthcare stocks is Novo Nordisk A/S, which also ranks as his top overall stock pick by a considerable margin, with the position being $635 million bigger than his second-largest holding, Microsoft Corporation (NASDAQ:MSFT). That despite Simons trimming his fund’s stake in NVO by 13% during Q3 to 15.3 million shares. Novo Nordisk rose to an all-time high in hedge fund ownership during Q3, with the number of funds long NVO having risen by 67% since the middle of 2021.

Renaissance has invested heavily in several companies with prominent exposure to diabetes, so it’s not surprising that it also has the market leader Novo Nordisk A/S as its top stock pick. The company controls about 32% of the diabetes market, headlined by Ozempic, which grew revenue by 86% year-over-year during the first nine months of 2022 and which accounted for about one-third of the company’s overall revenue. It’s also developing an Alzheimer’s treatment, which appears to be another key market that many of RenTech’s top healthcare stock picks are targeting.

ClearBridge Investments also discussed Novo Nordisk A/S in its Q3 2022 investor letter, noting the company’s strong balance sheet and pricing power:

“The proceeds from our repositioning sales continue to be put to work across the Strategy’s secular and structural growth buckets. In particular, we have been adding more to secular, quality compounders such as Danish biotech company Novo Nordisk A/S and Japanese medical equipment supplier Olympus (OTCPK:OCPNF). These companies have strong balance sheets, good cash flow generation and significant pricing power, characteristics that should enable them to get stronger through the storm impacting international equities.”

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