Renaissance Technologies: Analyzing Its Q3 13F

On Wednesday, Renaissance Technologies filed its 13F. At the end of the third quarter, the company’s portfolio of publicly traded securities was worth around $118.14 billion. During the same period last year, the figure was around $97.2 billion. James Simons is the founder and non-executive chairman of Renaissance Technologies. Overall, the billionaire hedge fund manager is known for his quantitative investment strategies. According to Forbes, Simons’s net worth is around $21.6 billion as of today.

Renaissance Technologies: Analyzing Its Q3 13F

Top buys

At the end of the third quarter, Bristol-Myers Squibb (BMY), Celgene (CELG), Biogen (BIIB), UnitedHealth Group (UNH), and Walmart (WMT) were Renaissance Technologies’ top five buys. Notably, the hedge fund increased its holdings in these securities by 0.58, 0.58, 0.32, 0.3, and 0.28 percentage points, respectively. Renaissance Technologies also included American Express (AXP), Lowe’s Companies (LOW), and Costco Wholesale (COST) during the last quarter.

On a YTD (year-to-date) basis, Bristol-Myers Squibb and Celgene have risen 13.1% and 72.3%. Meanwhile, Bristol-Myers Squibb will acquire Celgene by the end of this year. Among the 12 analysts surveyed by Reuters tracking Bristol-Myers Squibb stock, 66.6% recommend a “buy” or “strong-buy.” The remaining analysts have a “hold” recommendation on the stock. Analysts’ mean target price suggests a possible rise of 9.2% in Bristol-Myers Squibb’s stock prices in the next year from the last closing level.

Renaissance Technologies’ top holdings

In the third quarter, Bristol-Myers Squibb, Chipotle Mexican (CMG), VeriSign (VRSN), Celgene, and Novo-Nordisk (NVO) were the hedge fund’s top five holdings. The stocks represent 1.4, 1.36, 1.32, 1.30, and 1.1 percentage points of the fund’s total portfolio of publicly traded securities. In the third quarter, VeriSign fell to the third position among Renaissance Technologies’ largest holdings in the second quarter. On a YTD basis, VeriSign’s stock prices have risen 25.4% as of Wednesday.

Since Chipotle’s third-quarter earnings results on October 22, the stock prices have fallen around 9.4%. Read Is Chipotle Stock a “Buy” after Recent Decline? to learn more about the decline.

Chipotle was the top holding in Bill Ackman’s Pershing Square Capital at the end of the second quarter. Chipotle accounted for around 19.5% of Pershing Square’s total portfolio of publicly traded securities during the second quarter. 

Institutional activities

Last quarter, Renaissance Technologies added around 12.1 million Bristol-Myers Squibb stocks. However, Wellington Management, the second-largest institutional holder, sold 3.9 million Bristol-Myers Squibb stocks in the third quarter. BlackRock Fund Advisors and Citigroup Global Markets increased their stake in the stock by 4.7 million and 3.8 million stocks at the end of the same quarter. The Vanguard Group is the largest institutional holder of Bristol-Myers Squibb with around 131.7 million stocks.

Renaissance Technologies’ top sells

In the third quarter, Apple (AAPL), Pepsico (PEP), Align Technology (ALGN), ABIOMED (ABMD), and Philip Morris International (PM) were Renaissance Technologies’ top sells. The hedge fund reduced its holdings in these stocks by approximately 0.4, 0.33, 0.27, 0.24, and 0.23 percentage points, respectively. 

In contrast, Apple is Dimensional Fund Advisors’ top buy based on the third-quarter 13F filings. So far, Apple’s stock prices have risen 67.7% in 2019. To learn more, read Dimensional Fund Advisors’ Major Holdings in Q3.