Multi-Billion-Dollar Fund Renaissance Technologies Entered Q4 With These Top Picks

#3 Alaska Air Group Inc. (NYSE:ALK)

Shares Owned by Renaissance Technologies LLC (as of September 30): 5.51 million shares

Value of Holding (as of September 30): $438.15 million

Alaska Air Group Inc. (NYSE:ALK) has had a great year in terms of stock performance thus far in 2015, with its shares advancing 27% year-to-date. Even so, Jim Simons’ Renaissance Technologies cut its exposure to the company during the September quarter, reducing its stake by 530,479 shares over the three-month period. It might seem that the well-known hedge fund increases its exposure to companies with high valuations and reduces its positions in ‘cheap’ companies. Alaska Air Group has a trailing P/E of 12.43, which is substantially below the median for the S&P 500 companies. The low oil price environment, the tightening labor market and the strengthening U.S. economy have surely assisted the airline company in delivering a stong performance this year. David Harding’s Winton Capital Management increased its position in Alaska Air Group Inc. (NYSE:ALK) by 174,284 shares during the September quarter to 622,336 shares.

#2 Novo Nordisk A/S (ADR) (NYSE:NVO)

Shares Owned by Renaissance Technologies LLC (as of September 30): 13.17 million shares

Value of Holding (as of September 30): $714.40 million

Renaissance Technologies slashed its stake in Novo Nordisk A/S (ADR) (NYSE:NVO) by 916,000 shares or roughly 9% during the previous quarter, remaining with slightly more than 13.17 million shares. The Danish drugmaker’s high-potential diabetes drug Victoza did not “improve clinical stability or delay death in patients suffering from advanced heart failure”, according to a recent article published by Reuters. Researchers had previously anticipated that the injectable drug’s effect on the level of blood sugar could somewhat reduce some of the metabolic effects of heart failure. Just recently, the world’s largest insulin maker reported a third-quarter net profit of $8.38 billion Danish kroner ($1.24 billion), which grew 29% year-on-year. Arrowstreet Capital upped its stake in Novo Nordisk A/S (ADR) (NYSE:NVO) by 6.86 million shares during the latest quarter, owning 12.61 million shares as of September 30.

#1 Colgate-Palmolive Company (NYSE:CL)

Shares Owned by Renaissance Technologies LLC (as of September 30): 11.44 million shares

Value of Holding (as of September 30): $725.84 million

Colgate-Palmolive Company (NYSE:CL) was the largest equity holding of Renaissance Technologies at the end of the third quarter, which accounted for 1.73% of its portfolio. Jim Simons’ hedge fund reduced its position in the global consumer products company by 1.15 million shares during the turbulent three-month period. Expectedly, the company’s high exposure to global economies has put some downward pressure on its top- and bottom-lines. Just recently, Colgate-Palmolive reported third-quarter worldwide net sales of $4.00 billion, which were down 8.5% year-over-year. The foreign exchange rates had a noticeable impact on this figure, considering that the company’s organic sales (i.e. net sales excluding foreign exchange, acquisitions and divestments) climbed 5.0% year-on-year. First Eagle Investment Management, founded by Jean-Marie Eveillard, reported owning 4.74 million shares in Colgate-Palmolive Company (NYSE:CL) in the latest round of 13F filings.

Disclosure: None