Billionaire Jim Simons’ 2023 Portfolio: Top 15 Stock Picks
In this article, we discuss billionaire Jim Simons’ top 15 stock picks in 2023. If you want to see more stocks in this selection, check out Billionaire Jim Simons' 2023 Portfolio: Top 5 Stock Picks.
Managed by Renaissance Technologies, the Medallion Fund stands as one of the world's most prosperous and enigmatic hedge funds. Established in 1988 by mathematician Jim Simons, the fund has consistently generated remarkable returns for its investors, earning a reputation for employing mathematical models and algorithms to conduct trading activities within the financial markets. With a current net worth of approximately $28 billion, Simons directs his attention beyond the daily trading of stocks and other financial assets. The unique approach employed by Simons and his former colleagues at Renaissance has yielded unprecedented annualized returns.
During the March quarter, fund managers focused their attention on the U.S. financial sector, which experienced significant volatility as a result of the severe banking crisis, reminiscent of the 2008 financial meltdown. According to Reuters, securities filings released for the first quarter of 2023 reveal that Renaissance Technologies was one of the notable funds that invested in First Republic Bank. Renaissance Technologies acquired around 7.1 million shares of the bank during the first quarter and retained ownership of them until March 31, when they were valued at $13.99 per share.
Jim Simons’ Renaissance Technologies also significantly increased its investment in Tesla, Inc. (NASDAQ:TSLA) during the fourth quarter of 2022. Their holdings of Tesla, Inc. (NASDAQ:TSLA) stock grew by 18% to reach 4 million shares. The firm also acquired nearly 1.8 million shares of Bed Bath & Beyond (BBBY), resulting in a stake worth $749,000 as of the end of March 2023.
However, in this article, we discuss the top 15 stocks to buy and hold according to Jim Simons’ hedge fund, which include Amazon.com, Inc. (NASDAQ:AMZN), Novo Nordisk A/S (NYSE:NVO), and Airbnb, Inc. (NASDAQ:ABNB).
Our Methodology
For this list, we selected top 15 stocks from the Q1 2023 13F portfolio of Jim Simons’ Renaissance Technologies. The stocks are ranked in ascending order of their stake value.
Jim Simons of Renaissance Technologies
Billionaire Jim Simons' 2023 Portfolio: Top Stock Picks
15. Zoom Video Communications, Inc. (NASDAQ:ZM)
Number of Hedge Fund Holders: 36
Renaissance Technologies’ Stake Value: $485,381,000
Zoom Video Communications, Inc. (NASDAQ:ZM) offers a comprehensive communications platform across various regions, including the Americas, Asia Pacific, Europe, the Middle East, and Africa. Their service, Zoom Meetings, enables users to engage in high-definition video, voice, chat, and content sharing on a wide range of devices such as mobile devices, computers, telephones, and conference room systems. In Q1 2023, Simons’ fund owned 6.5 million shares of Zoom Video Communications, Inc. (NASDAQ:ZM) worth $6.5 million, representing 0.64% of the total 13F securities.
According to Needham analyst Ryan Koontz, Zoom Video Communications, Inc. (NASDAQ:ZM) is expected to benefit from Microsoft's reported decision to separate Teams from Office. On April 24, the analyst maintained a Hold rating on Zoom Video Communications, Inc. (NASDAQ:ZM), stating that Teams has become a prominent collaboration platform for enterprises. The unbundling of Teams from Office increases the analyst's confidence in Zoom's ability to achieve a consensus growth rate of 5% in its fiscal year 2025.
Among the hedge funds tracked by Insider Monkey in Q4 2022, 36 funds were long Zoom Video Communications, Inc. (NASDAQ:ZM), compared to 40 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the biggest stakeholder of the company, with 10.6 million shares worth $719 million.
Like Amazon.com, Inc. (NASDAQ:AMZN), Novo Nordisk A/S (NYSE:NVO), and Airbnb, Inc. (NASDAQ:ABNB), Zoom Video Communications, Inc. (NASDAQ:ZM) is one of the top stock picks of Jim Simons’ Renaissance Technologies.
Here is what Horos Asset Management had to say about Zoom Video Communications, Inc. (NASDAQ:ZM) in its Q1 2022 investor letter:
“What about the other asset class that has attracted the most attention from the investment community in recent times? Here we can distinguish three major groups. First, those companies without earnings that had convinced investors of their great future growth prospects, pushing up their valuations to irrational levels. A clear example of this, which we mentioned almost two years ago (see here) is Zoom Video Communications (“Zoom”), whose market cap exceeded that of companies such as IBM or came close to that of Cisco Systems. Well, from the time we wrote about this odd situation until today, Zoom shares have collapsed nearly 80%.
Therefore, if interest rates rise (or are expected to rise), company valuations are negatively impacted. This is especially true for those businesses that generate little cash today and the market expects them to generate a lot of cash in the future. Hence the severe losses in companies that promised a lot of cash generation in the future (such as Zoom).”
14. The Kroger Co. (NYSE:KR)
Number of Hedge Fund Holders: 42
Renaissance Technologies’ Stake Value: $495,125,000
The Kroger Co. (NYSE:KR) operates as a food and drug retailer in the United States. Securities filings for the first quarter of 2023 revealed that Jim Simons’ Renaissance Technologies owned more than 10 million shares of The Kroger Co. (NYSE:KR) worth $495 million, representing 0.65% of the total portfolio.
On March 20, Northcoast analyst Chuck Cerankosky raised the rating on The Kroger Co. (NYSE:KR) from Neutral to Buy and set a price target of $60. The stock has declined to the mid-$40 range due to the company's announcement of its intention to acquire Albertsons. However, the analyst believes that since the transaction is still a considerable time away, investors should instead focus on the value of The Kroger Co. (NYSE:KR) stock based on its own strengths. This was demonstrated in the company's recently released fourth-quarter results.
According to Insider Monkey’s fourth quarter database, 42 hedge funds were bullish on The Kroger Co. (NYSE:KR), compared to 49 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with 50 million shares worth $2.2 billion.
Oakmark Fund made the following comment about The Kroger Co. (NYSE:KR) in its Q1 2023 investor letter:
“The Kroger Co. (NYSE:KR is the second-largest grocery retailer in America, behind only Walmart. Although the grocery industry is highly competitive, Kroger’s scale advantages allow it to offer a more compelling value proposition than smaller peers and earn higher returns on capital. In recent years, the market has assigned Kroger a lower multiple due to concerns that e-commerce would disrupt traditional brick-and-mortar grocery businesses. However, we believe Kroger’s performance through the pandemic highlighted that its store footprint, distribution infrastructure, technology investments and strong brand all position the company well for a world with higher online grocery adoption. The stock trades for just 10x our estimate of next year’s EPS, which we believe is attractive given Kroger’s competitive positioning and earnings growth outlook. The pending merger with Albertsons has the potential to drive accelerated earnings growth and further scale advantages. If the merger is not approved, the company will have the capacity to return over 25% of its market cap to shareholders.”
13. Pfizer Inc. (NYSE:PFE)
Number of Hedge Fund Holders: 75
Renaissance Technologies’ Stake Value: $495,718,000
Pfizer Inc. (NYSE:PFE) is a global company engaged in the research, development, production, marketing, distribution, and sale of biopharmaceutical products worldwide. In Q1 2023, Jim Simons’ fund owned more than 12 million shares of Pfizer Inc. (NYSE:PFE) worth $495.7 million, representing 0.65% of the total 13F portfolio. Renaissance Technologies increased its stake in the company by 1034% in Q1.
On April 26, Pfizer Inc. (NYSE:PFE) declared a quarterly dividend of $0.41 per share, in line with previous. The dividend is payable on June 9, to shareholders of record on May 12.
Barclays analyst Carter Gould on May 3 maintained an Equal Weight rating on Pfizer Inc. (NYSE:PFE) and lowered the firm's price target on the shares to $40 from $43 following the Q1 results. The analyst anticipates a difficult situation for Pfizer Inc. (NYSE:PFE) in the upcoming summer months, as the effects of COVID and new product launches are expected to have a greater impact in the later part of 2023.
According to Insider Monkey’s fourth quarter database, 75 hedge funds were bullish on Pfizer Inc. (NYSE:PFE), compared to 77 funds in the prior quarter. Cliff Asness’ AQR Capital Management is a prominent stakeholder of the company, with 9.8 million shares worth $502.7 million.
Diamond Hill Capital made the following comment about Pfizer Inc. (NYSE:PFE) in its Q3 2022 investor letter:
“Also among our bottom contributors were health care products manufacturer Abbott Labs, global pharmaceutical company Pfizer Inc. (NYSE:PFE), media and technology giant Alphabet, and insurance company American International Group (AIG). Although Pfizer continues to report strong performance of its core drugs, sales of its COVID vaccine and treatment have likely peaked and sales are expected to decline going forward. We remain optimistic about the company long term as we believe management is taking the company in the right direction, focusing R&D, and making strategic acquisitions with profits generated from COVID vaccine sales.”
12. United Therapeutics Corporation (NASDAQ:UTHR)
Number of Hedge Fund Holders: 49
Renaissance Technologies’ Stake Value: $498,852,000
United Therapeutics Corporation (NASDAQ:UTHR) is a biotechnology company that focuses on developing and bringing to market innovative products to meet the medical needs of patients suffering from chronic and life-threatening diseases. In Q1 2023, Jim Simons’ fund held 2.22 million shares worth $498.85 million, representing 0.66% of the total securities.
On May 3, United Therapeutics Corporation (NASDAQ:UTHR) reported a Q1 GAAP EPS of $4.86, beating Wall Street estimates by $0.36. The revenue of $506.9 million increased 9.7% on a year-over-year basis, missing market consensus by $7.47 million.
Ladenburg analyst Matthew Kaplan on May 4 maintained a Buy rating on United Therapeutics Corporation (NASDAQ:UTHR) but lowered the firm's price target on the shares to $256 from $285 following the Q1 results. The decision to trim the price target is primarily attributed to updated revenue projections specifically related to treprostinil-based products, the analyst told investors in a research note.
According to Insider Monkey’s fourth quarter database, 49 hedge funds were bullish on United Therapeutics Corporation (NASDAQ:UTHR), compared to 47 funds in the earlier quarter. Kurt Von Emster’s VenBio Select Advisor is the biggest position holder in the company.
11. Franco-Nevada Corporation (NYSE:FNV)
Number of Hedge Fund Holders: 27
Renaissance Technologies’ Stake Value: $506,437,000
Franco-Nevada Corporation (NYSE:FNV) specializes in royalties and streaming related to gold. They primarily operate in Latin America, the United States, Canada, and other international markets. In the first quarter of 2023, Jim Simons’ Renaissance Technologies owned 3.47 million shares of Franco-Nevada Corporation (NYSE:FNV), worth $506.4 million and representing 0.67% of the total 13F securities.
On May 4, H.C. Wainwright analyst Heiko Ihle has increased the firm's price target on Franco-Nevada to $180 from $145 and maintained a Buy rating on the company's shares. The decision to raise the target price is based on recent market multiples and is influenced by Franco-Nevada Corporation (NYSE:FNV) Q1 results.
According to Insider Monkey’s fourth quarter database, 27 hedge funds were bullish on Franco-Nevada Corporation (NYSE:FNV), compared to 28 funds in the earlier quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with 2.11 million shares worth $288.6 million.
Here is what Horizon Kinetics has to say about Franco-Nevada Corporation (NYSE:FNV) in its Q3 2022 investor letter:
“Back to basic principles. We don’t hold gold in client portfolios, we hold gold royalty companies. The two have surprisingly little in common. The gold royalty company generates very impressive profits even if the gold price never rises, and it earns those profits year after year. Here is a long-term chart of Franco Nevada Corp., the premier gold royalty company vs. gold itself: a comparable gold price today than a decade ago, yet Franco Nevada returned 12.5% annually, matching the S&P 500 return, despite its nearsole source of revenues unchanged. What will Franco Nevada’s earnings and share price do if gold rises over the course of a decade?”
10. Chevron Corporation (NYSE:CVX)
Number of Hedge Fund Holders: 57
Renaissance Technologies’ Stake Value: $526,124,000
Chevron Corporation (NYSE:CVX) is one of Jim Simons’ top stock picks as of the first quarter of 2023. The billionaire held 3.22 million shares of Chevron Corporation (NYSE:CVX) in Q1, worth $526 million. On May 17, the company declared a $1.51 per share quarterly dividend, in line with previous. The dividend is payable on June 12, to shareholders of record on May 19.
On May 1, Truist analyst Neal Dingmann maintained a Hold rating on Chevron Corporation (NYSE:CVX) and lowered the firm's price target on the shares to $190 from $193 following its Q1 results. The report indicated a decline in free cash flow, both with and without working capital, compared to both the previous quarter and the same period last year, primarily due to increased capital expenditure. Chevron also intends to continue expanding various new energy initiatives, including a significant carbon capture project at Bayou Bend. However, the company plans to focus its capital on higher-margin businesses, the analyst stated in the research note to investors.
According to Insider Monkey’s fourth quarter database, 57 hedge funds were bullish on Chevron Corporation (NYSE:CVX), compared to 66 funds in the prior quarter.
Carillon Eagle Growth & Income Fund made the following comment about Chevron Corporation (NYSE:CVX) in its Q4 2022 investor letter:
“Energy performed well during the fourth quarter, with the sector up about 23%. Investors returned to the sector after the Organization of the Petroleum Exporting Countries (OPEC) signaled it would reduce production. Chevron Corporation (NYSE:CVX) reported strong quarterly results while buying back stock, paying a healthy dividend, and maintaining a strong balance sheet.”
9. The Boeing Company (NYSE:BA)
Number of Hedge Fund Holders: 53
Renaissance Technologies’ Stake Value: $550,640,000
The Boeing Company (NYSE:BA) is involved in the design, development, manufacturing, sales, servicing, and support of commercial jetliners, military aircraft, satellites, missile defense systems, human space flight and launch systems, as well as providing services globally. The company operates through four main segments: Commercial Airplanes, Defense, Space & Security, Global Services, and Boeing Capital. In Q1 2023, Jim Simons’ hedge fund owned 2.6 million shares of The Boeing Company (NYSE:BA) worth $550.6 million. Renaissance Technologies raised its stake in The Boeing Company (NYSE:BA) by 1072% in Q1.
On April 27, Wells Fargo analyst Matthew Akers raised the firm's price target on The Boeing Company (NYSE:BA) to $237 from $230 and maintained an Overweight rating on the shares. Despite the challenges Boeing faces with its 737 supplier issue, which impacts near-term deliveries and cash, the company's production ramp is still progressing as planned, according to the analyst. Looking ahead, Wells Fargo anticipates growing interest in the stock leading up to the Paris Air Show in June.
According to Insider Monkey’s fourth quarter database, 53 hedge funds were bullish on The Boeing Company (NYSE:BA), compared to 42 funds in the prior quarter. Phill Gross and Robert Atchinson’s Adage Capital Management is a prominent stakeholder of the company, with 1.3 million shares worth $250.2 million.
Jackson Square Partners made the following comment about The Boeing Company (NYSE:BA) in its Q3 2022 investor letter:
“For The Boeing Company (NYSE:BA)–in short, we believe the worst of Boeing’s idiosyncratic issues are behind it, the airframe duopoly remains as protected as ever, and at current prices (where we’ve been adding), the stock is trading around ~6x FCF on 2025E. Current airframe production is running materially below expected travel demand over the next 5-10 years, creating a structural supply/demand imbalance that we believe will drive a decade of strong growth in civil aerospace from here. In our 2Q’22 correspondence, we described the attributes of our ideal growth ballast and said we hoped to convert another in the coming months – we believe Boeing checks all those boxes.”
8. The Hershey Company (NYSE:HSY)
Number of Hedge Fund Holders: 37
Renaissance Technologies’ Stake Value: $586,000,000
The Hershey Company (NYSE:HSY) is involved in the production and sale of confectionery products and pantry items within the United States and internationally. The company is divided into three main segments – North America Confectionery, North America Salty Snacks, and International. In Q1 2023, Jim Simons’ Renaissance Technologies held a $586 million position in The Hershey Company (NYSE:HSY).
The Hershey Company (NYSE:HSY) on April 27 declared a $1.036 per share quarterly dividend, in line with previous. The dividend is payable on June 15, to shareholders of record on May 19.
On May 2, RBC Capital raised the firm's price target on The Hershey Company (NYSE:HSY) to $280 from $255 and kept an Outperform rating on the shares following the company's Q1 earnings surpassing expectations.
According to Insider Monkey’s fourth quarter database, 37 hedge funds were bullish on The Hershey Company (NYSE:HSY), compared to 42 funds in the last quarter. Cliff Asness’ AQR Capital Management is the biggest stakeholder of the company.
7. VeriSign, Inc. (NASDAQ:VRSN)
Number of Hedge Fund Holders: 40
Renaissance Technologies’ Stake Value: $672,682,000
VeriSign, Inc. (NASDAQ:VRSN) offers domain name registry services and internet infrastructure to facilitate internet navigation for a wide range of recognized domain names globally. In Q1 2023, Jim Simons’ Renaissance Technologies owned 3.18 million shares of VeriSign, Inc. (NASDAQ:VRSN) worth $672.6 million, representing 0.89% of the total 13F portfolio.
On December 15, Baird analyst Rob Oliver upgraded VeriSign, Inc. (NASDAQ:VRSN) to Outperform from Neutral with a price target of $265, up from $216. In a research note to investors, Oliver highlighted that investor attention may shift towards VeriSign, Inc. (NASDAQ:VRSN)’s upcoming contract renewal in 2024, as well as the resilience and growth potential of its free cash flow, particularly within a challenging software industry environment. Oliver considers VeriSign, Inc. (NASDAQ:VRSN)’s risk/reward ratio to be favorable and suggests there is room for multiple expansion.
According to Insider Monkey’s fourth quarter database, 40 hedge funds were bullish on VeriSign, Inc. (NASDAQ:VRSN), compared to 37 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the biggest stakeholder of the company, with 12.8 million shares worth $2.6 billion.
Here is what Baron Asset Fund has to say about VeriSign, Inc. (NASDAQ:VRSN) in its Q4 2021 investor letter:
“Verisign, Inc. provides internet infrastructure services worldwide and is best known for its exclusive role managing the .com and .net domains, for which it receives annual fees from all those domain owners. Shares of Verisign gained after reporting strong revenue growth and operating margins that exceeded Wall Street forecasts. We continue to be positive on Verisign’s business, based on its strong competitive position, capacity for global growth in domain names, and its ongoing ability to generate substantial free cash flow.”
6. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 110
Renaissance Technologies’ Stake Value: $685,697,000
UnitedHealth Group Incorporated (NYSE:UNH) is a diversified healthcare company that operates within the United States. On April 14, the company reported a Q1 non-GAAP EPS of $6.26 and a revenue of $91.9 billion, outperforming Wall Street estimates by $0.18 and $2.12 billion, respectively. In Q1 2023, Jim Simons’ Renaissance Technologies raised its stake in UnitedHealth Group Incorporated (NYSE:UNH) by 170%, holding 1.45 million shares worth $685.7 million.
On April 20, Cantor Fitzgerald analyst Sarah James started coverage of UnitedHealth Group Incorporated (NYSE:UNH) with an Overweight rating and a price target of $591. In a research note to investors, the analyst highlighted that UnitedHealth Group Incorporated (NYSE:UNH)’s innovative approach, return on invested capital, and risk diversification become particularly valuable in an election cycle within a cost-inflationary environment. The firm believes that UnitedHealth will remain at the forefront of promoting value-based care across payor, provider, and enablement technology sectors, which is expected to contribute to the company's earnings growth in the coming years.
According to Insider Monkey’s fourth quarter database, 110 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH), and Rajiv Jain’s GQG Partners held the largest stake in the company, comprising approximately 4 million shares worth $2.10 billion.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Novo Nordisk A/S (NYSE:NVO), and Airbnb, Inc. (NASDAQ:ABNB), UnitedHealth Group Incorporated (NYSE:UNH) is one of the top stock picks of Jim Simons’ fund.
RiverPark Large Growth Fund made the following comment about UnitedHealth Group Incorporated (NYSE:UNH) in its Q1 2023 investor letter:
“UnitedHealth Group Incorporated (NYSE:UNH): We re-initiated a position in UnitedHealthcare, a position we last held in January of 2022. The company’s stock price had fallen roughly 17% from its peak in October 2021 on fears about Medicare reimbursement rates, and we used this dislocation to start purchasing shares of what we believe to be the most dominant and complete managed care company in the industry.
With several at-scale and interconnected businesses, UNH occupies a unique position within the U.S. healthcare system. UnitedHealth has (a) a dominant managed care organization in commercial, Medicare and Medicaid markets, (b) a large and growing presence in local care delivery (OptumHealth’s physicians and ambulatory service centers), (c) one of only three at scale pharmacy benefits managers (OptumRx’s PBM) and (d) a fast-growing healthcare information technology (HCIT), consulting and revenue cycle management (RCM) business (OptumInsight). The combination of the largest MCO (UnitedHealth) with the faster-growing, higher-margin Optum services businesses positions the company to capture a large portion of the future growth opportunities in the U.S. healthcare services industry. We expect balanced growth from both health insurance and health services leading to consistent high-single-digit revenue growth for the company. With margin expansion from scale, share buybacks from its strong cash generating ability (the company currently has $30 billion in net cash), and continued strategic acquisitions, we believe the company can generate mid-teens or better earnings growth for the foreseeable future.
UNH shares were down slightly from where we re-initiated a position during the quarter, causing them to be a top detractor (-0.02%) in an overall strong quarter where few positions were down.”
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