Recent Portfolio Addition by Jim Simons (Trades, Portfolio)
On December 29, 2023, Renaissance Technologies, led by Jim Simons (Trades, Portfolio), made a notable addition to its investment portfolio by acquiring 35,400 shares of REX American Resources Corp (REX, Financial). This transaction increased the firm's total holdings in REX to 887,315 shares, reflecting a 4.16% change in the position. Despite the trade, the impact on the overall portfolio was registered at 0%, with the shares purchased at a price of $47.30 each. The current position in REX represents 0.07% of the firm's portfolio and 5.07% of the company's outstanding shares.
Jim Simons (Trades, Portfolio) and Renaissance Technologies
Jim Simons (Trades, Portfolio), a renowned mathematician and quantitative investor, founded Renaissance Technologies in 1982. The firm has since become one of the world's leading hedge funds, known for its sophisticated mathematical models and automated trading strategies. Renaissance Technologies focuses on identifying non-random price movements through extensive data analysis to predict market changes. The firm's investment philosophy emphasizes scientific thinking and skepticism of statistical flukes, which has contributed to its success in the financial markets. As of the latest data, Renaissance Technologies manages an equity portfolio worth $64.61 billion, with top holdings in technology and healthcare sectors, including Meta Platforms Inc (META, Financial), NVIDIA Corp (NVDA, Financial), and Novo Nordisk A/S (NVO, Financial).
Understanding REX American Resources Corp
REX American Resources Corp, based in the USA, has been publicly traded since July 1, 1992. The company operates as a holding entity with investments in alternative energy and ethanol production. Its diverse product range includes dried distillers grains, modified distillers grains, and non-food grade corn oil. With a market capitalization of $737.608 million and a stock price of $42.14, REX is positioned within the chemicals industry. The company's stock is currently deemed as "Fairly Valued" according to GuruFocus metrics, with a GF Value of $38.95 and a price to GF Value ratio of 1.08. Despite a recent price decline of 10.91% since the transaction, REX has experienced a significant increase of 5,666.76% since its IPO.
Trade Impact and Portfolio Influence
Although the trade impact on Jim Simons (Trades, Portfolio)' portfolio is marked at 0%, the acquisition of additional shares in REX American Resources Corp is a strategic move. The firm's increased stake in REX, now accounting for 0.07% of the portfolio, could signal confidence in the company's future performance or an alignment with Renaissance Technologies' investment criteria. However, without sufficient data on the trade impact, the long-term influence of this transaction remains to be seen.
Market Valuation and Financial Health of REX
REX's current market valuation aligns with GuruFocus's assessment of being fairly valued. The company's financial health is robust, with a Financial Strength rank of 9/10 and a Profitability Rank of 8/10. REX's growth prospects, however, are reflected in a moderate Growth Rank of 4/10. The company's financial performance over the past three years has been positive, with revenue growth of 30.10%, EBITDA growth of 24.40%, and earnings growth of 96.50%.
Comparison with Largest Guru Shareholder
Hotchkis & Wiley Capital Management LLC currently stands as the largest guru shareholder in REX American Resources Corp. While specific shareholding percentages are not provided, the comparison between Jim Simons (Trades, Portfolio)' firm and Hotchkis & Wiley's investment strategies could offer insights into the varying approaches to holding REX shares. The strategies may differ in terms of investment horizon, valuation methods, or portfolio diversification goals.
Conclusion
The recent acquisition of REX American Resources Corp shares by Jim Simons (Trades, Portfolio)' Renaissance Technologies may hold significance for value investors monitoring the firm's moves. Although the trade impact data is not available, the firm's increased stake in REX could suggest a strategic position that aligns with its sophisticated investment approach. Value investors will be watching closely to see how this transaction unfolds within the context of REX's financial health and growth prospects.
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.
