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10 Best Stocks to Buy Now According to Quant Billionaire Jim Simons’ Fund

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·8 min read
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In this article, we discuss the 10 best stocks to buy now according to quant billionaire Jim Simons' Fund. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Stocks to Buy Now According to Quant Billionaire Jim Simons' Fund.

Jim Simons, the chief of New York-based Renaissance Technologies, a hedge fund with a portfolio value in excess of $77 billion at the end of the third quarter of 2021, is often termed the “smartest billionaire in the world” because of his advanced degree in Mathematics and the employment of quant strategies at the fund that have helped him turn it into one of the largest investment firms in the United States. Simons has a personal net worth of more than $24 billion and is placed 28th on the list of 400 richest Americans in 2021 maintained by Forbes.

Latest 13F filings show that the portfolio value of Renaissance Technologies dropped by about $3 billion between June and September this year as the fund made new purchases in 665 stocks, additional purchases in 934, sold out of 657, and reduced holdings in 1,804 equities. The top ten holdings of the fund comprise just over 12% of the portfolio and are concentrated in high-growth sectors like software and semiconductors. Simons is famous because between 1988 to 2018, the flagship Medallion Fund of his firm returned 66% annualized to investors.

Some of the top stocks in the portfolio of Renaissance Technologies at the end of September included Microsoft Corporation (NASDAQ:MSFT), Atlassian Corporation Plc (NASDAQ:TEAM), and Zoom Video Communications, Inc. (NASDAQ:ZM), among others discussed in detail below.

Our Methodology

The companies listed below were taken from the investment portfolio of Renaissance Technologies at the end of the third quarter of 2021. The analyst ratings and business fundamentals of the firms are also discussed to provide readers with some additional context for their investment choices.

The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.

10 Best Stocks to Buy Now According to Quant Billionaire Jim Simons' Fund
10 Best Stocks to Buy Now According to Quant Billionaire Jim Simons' Fund

Jim Simons of Renaissance Technologies

Best Stocks to Buy Now According to Quant Billionaire Jim Simons' Fund

10. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 65

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor firm. Latest data shows that Renaissance Technologies owned 6.8 million shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the third quarter of 2021 worth $705 million, representing 0.91% of the portfolio.

On November 9, investment advisory Wedbush maintained an Outperform rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock and raised the price target to $165 from $140. Analyst Matt Bryson issued the ratings update.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) with 12 million shares worth more than $1.3 billion.

Just like Microsoft Corporation (NASDAQ:MSFT), Atlassian Corporation Plc (NASDAQ:TEAM), and Zoom Video Communications, Inc. (NASDAQ:ZM), Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks on the radar of elite investors.

In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of them. Here is what the fund said:

“We also exited our positions in Advanced Micro Devices. Our investment campaign in Advanced Micro Devices (AMD) began in the second half of 2018, and we have seen a new management team reinvigorate the company’s product portfolio of microprocessors for PCs and servers, graphics processors, and video game consoles. These new, higher-margin products have helped the company partially close its margin gap with peers and capture share from market leader Intel. While we believe there is meaningful runway for further share gains and margin expansion, AMD has appreciated far beyond our mid-cap market cap mandate, and we exited our position.”

9. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 49

Target Corporation (NYSE:TGT) operates as a general merchandise retailer. According to regulatory filings, Renaissance Technologies owned 3 million shares in Target Corporation (NYSE:TGT) at the end of September 2021 worth $705 million, representing 0.91% of the portfolio.

Target Corporation (NYSE:TGT) posted earnings for the third quarter on November 17, reporting earnings per share of $3.03, beating estimates by $0.23. The revenue over the period was $25.6 billion, up 13% year-on-year.

Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Target Corporation (NYSE:TGT) with 5.5 million shares worth more than $1.2 billion.

8. NVIDIA Corporation (NASDAQ:NVDA)

Number of Hedge Fund Holders: 83

NVIDIA Corporation (NASDAQ:NVDA) is a visual computing firm. The hedge fund of Jim Simons owned 3.4 million shares of NVIDIA Corporation (NASDAQ:NVDA) at the end of the third quarter of 2021 worth more than $710 million, representing 0.91% of the total portfolio.

Tigress Financial analyst Ivan Feinseth recently raised the price target on NVIDIA Corporation (NASDAQ:NVDA) stock to $400 from $230 and kept a Buy rating, noting the potential of the firm to power the emerging metaverse and omniverse concepts.

At the end of the third quarter of 2021, 83 hedge funds in the database of Insider Monkey held stakes worth $10 billion in NVIDIA Corporation (NASDAQ:NVDA), down from 86 the preceding quarter worth $9 billion.

In its Q1 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and NVIDIA Corporation (NASDAQ:NVDA) was one of them. Here is what the fund said:

“NVIDIA Corp. is the dominant supplier of Graphics Processing Units (GPUs) worldwide. NVIDIA’s GPUs are at the intersection of a number of important computing trends including the movement to the Cloud, artificial intelligence, autonomous vehicles, edge computing, gaming, and more. We previously owned NVIDIA and sold it in the third quarter of 2020 as the price to value gap closed and our margin of safety was reduced. As with all our MVP companies, we continued to follow NVIDIA closely. Since that time, NVIDIA reported excellent results and its value has compounded rapidly. The technology selloff at the beginning of the year negatively affected the stock price while our estimate of NVIDIA’s value per share increased. This happy combination of events created a margin of safety and an opportunity to once again add NVIDIA to the portfolio.”

7. The Kroger Co. (NYSE:KR)

Number of Hedge Fund Holders: 39

The Kroger Co. (NYSE:KR) is an Ohio-based retailer. Renaissance Technologies owned 18 million shares in The Kroger Co. (NYSE:KR) at the end of September 2021 worth $750 million, representing 0.96% of the portfolio of the fund.

The Kroger Co. (NYSE:KR) announced on December 8 that it would be expanding a customer fulfilment center in North Carolina. The expansion will integrate machine learning and robotics within the delivery system of the company.

At the end of the third quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $3.9 billion in The Kroger Co. (NYSE:KR), the same as in the preceding quarter worth $3.5 billion.

6. Moderna, Inc. (NASDAQ:MRNA)

Number of Hedge Fund Holders: 49

Moderna, Inc. (NASDAQ:MRNA) is a biotech firm based in Cambridge. At the end of the third quarter of 2021, Renaissance Technologies owned 1.9 million shares in Moderna, Inc. (NASDAQ:MRNA) worth $769 million, representing 0.99% of the portfolio.

Cowen analyst Tyler Van Buren recently initiated coverage of Moderna, Inc. (NASDAQ:MRNA) stock with a Market Perform rating and a price target of $250, noting that the demand for COVID-19 booster shots was a growth catalyst for the company in the near-term.

At the end of the third quarter of 2021, 49 hedge funds in the database of Insider Monkey held stakes worth $7.3 billion in Moderna, Inc. (NASDAQ:MRNA), up from 37 in the preceding quarter worth $5.7 billion.

In addition to Microsoft Corporation (NASDAQ:MSFT), Atlassian Corporation Plc (NASDAQ:TEAM), and Zoom Video Communications, Inc. (NASDAQ:ZM), Moderna, Inc. (NASDAQ:MRNA) is one of the stocks that hedge funds are buying.

In its Q2 2021 investor letter, Baillie Gifford, an asset management firm, highlighted a few stocks and Moderna, Inc. (NASDAQ:MRNA) was one of them. Here is what the fund said:

“Among the top contributors to Fund performance in the second quarter was Moderna. Moderna has just reported its first profitable quarter in the company’s history – net income for the most recent quarter was $1.2 billion. It reported revenue of $1.9 billion, an impressive increase compared to $8 million a year ago, driven by the sales of its Covid-19 vaccine. Moderna is expecting to deliver up to 1 billion vaccine doses in 2021 and is in discussions to increase global supply to governments around the world. Our long-term focus remains on the transformational potential of Moderna’s technology and its ability to address different diseases.”

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Disclosure. None. 10 Best Stocks to Buy Now According to Quant Billionaire Jim Simons' Fund is originally published on Insider Monkey.