Insight into the Investment Strategy of a Mathematical Trading Pioneer
Jim Simons (Trades, Portfolio), the renowned mathematician and founder of Renaissance Technologies, has once again made significant adjustments to his portfolio in the third quarter of 2023. Known for his quantitative approach to investing, Simons has built one of the most successful hedge funds in the world, leveraging complex algorithms and data analysis to inform trading decisions. His scientific mindset and skepticism of statistical flukes have set a new standard in the investment world.
New Additions to the Portfolio
Simons' latest 13F filing reveals a total of 466 new stock additions. Noteworthy among them are:
- D.R. Horton Inc (DHI, Financial), with 1,159,438 shares, making up 0.21% of the portfolio and valued at $124.61 million.
- Vertiv Holdings Co (VRT, Financial), comprising 2,605,712 shares, which is approximately 0.17% of the portfolio, with a total value of $96.93 million.
- KLA Corp (KLAC, Financial), with 183,809 shares, accounting for 0.14% of the portfolio and a total value of $84.31 million.
Significant Position Increases
Simons has also ramped up stakes in several companies:
- Microsoft Corp (MSFT, Financial) saw an additional 1,112,483 shares, bringing the total to 1,155,782 shares. This represents a staggering 2,569.3% increase in share count, impacting the current portfolio by 0.6%, with a total value of $364.94 million.
- Netflix Inc (NFLX, Financial) with an additional 908,367 shares, bringing the total to 1,382,700. This adjustment marks a 191.5% increase in share count, with a total value of $522.11 million.
Exiting Positions
The third quarter also saw Simons exit 719 holdings, including:
- Chevron Corp (CVX, Financial), where all 1,176,277 shares were sold, impacting the portfolio by -0.27%.
- Thermo Fisher Scientific Inc (TMO, Financial), with a complete sell-off of 328,546 shares, causing a -0.25% impact on the portfolio.
Notable Reductions
Reductions in existing positions were also part of Simons' Q3 strategy:
- Meta Platforms Inc (META, Financial) saw a reduction of 4,434,497 shares, a -97.85% decrease, affecting the portfolio by -1.83%. The stock traded at an average price of $301.3 during the quarter and has seen a 9.21% return over the past three months and 177.88% year-to-date.
- Tesla Inc (TSLA, Financial) was reduced by 1,375,211 shares, a -65.74% cut, with a -0.52% impact on the portfolio. The stock's average trading price was $256.88 for the quarter, with a -2.35% return over the past three months and a 90.06% year-to-date return.
Portfolio Overview
As of the third quarter of 2023, Jim Simons (Trades, Portfolio)'s portfolio encompasses 3,611 stocks. The top holdings include 2.52% in Novo Nordisk A/S (NVO, Financial), 1.23% in Apple Inc (AAPL, Financial), 1.19% in Palantir Technologies Inc (PLTR, Financial), 1.07% in VeriSign Inc (VRSN, Financial), and 1.05% in Airbnb Inc (ABNB, Financial). The investments are predominantly concentrated across all 11 industries, with a particular focus on Technology, Healthcare, and Consumer Cyclical sectors.
Jim Simons (Trades, Portfolio)' latest moves reflect a dynamic approach to portfolio management, with significant shifts that may signal broader market trends or strategic repositioning. As investors and enthusiasts alike analyze these changes, the insights gleaned from Simons' 13F filing will undoubtedly influence discussions and decisions in the value investing community.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
