Jim Simons Stock Portfolio: 5 Biggest Healthcare Stocks

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. (NASDAQ:GILD) 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. (NASDAQ:GILD)’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. (NASDAQ:GILD)’s long-term opportunity in virology in its Q3 2022 investor letter:

“At the stock level, biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD) 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.”