Renaissance Technologies, founded in 1982 by mathematician and former NSA codebreaker Jim Simons, is an American hedge fund specializing in systematic trading. The firm leverages advanced statistical and mathematical models to power its algorithm-driven investment strategies. As of March 2024, Renaissance Technologies managed over $89.3 billion in assets.
Jim Simons is hailed as a pioneer of quantitative investing. At the time of his passing in May 2024, his net worth was estimated at $31.4 billion, placing him among the world’s wealthiest individuals. His innovative use of mathematical models and algorithms to drive long-term investment returns has secured a legacy on par with industry giants like Warren Buffett and George Soros.
The Medallion Fund, Renaissance Technologies’ flagship fund, achieved an average annual return of 66% between 1988 and 2018, generating over $100 billion in profits. Initially, the fund charged a 5% fixed fee and a 20% performance fee, which later increased to 44% in 2002. Despite the higher fees, Medallion consistently delivered impressive average annual returns of around 39%, solidifying its reputation as a top-performing quantitative fund.
In 1993, Renaissance Technologies closed its flagship fund to outside investors, limiting participation to current and former employees and their families. Jim Simons stepped back from active management in 2010 and resigned as executive chairman in 2021, paving the way for CEO Peter Brown, a Harvard mathematics graduate with a Ph.D. in Computer Science from Carnegie Mellon University.
Peter Brown is dedicated to using advanced mathematical models to unlock stock value, even as Renaissance Technologies’ external hedge funds face challenges. Recent reports show that the Renaissance Institutional Equities Fund (RIEF) now manages about $19.6 billion, down from $35.8 billion in 2020, while the merger of RIDA and RIDGE has shrunk their combined portfolio from roughly $29.3 billion in 2019 to just $3.6 billion today.
This overall decline—from $65.1 billion in 2019 to $23.2 billion now—was largely driven by post-pandemic market volatility, contrasting sharply with the Medallion Fund’s 76% gain in 2020 due to its high-frequency trading strategy. However, external funds are beginning to stabilize, with RIEF up 19.8% and RIDA up 17.4% this year, signaling a potential recovery in Renaissance’s overall performance in quantitative trading.
With that in mind, let’s explore the top stock picks from the Renaissance Technologies portfolio.
Following Renaissance’s Stock Picks
We analyzed Renaissance Technologies’ 13F portfolio as of September 30, 2024, to identify the top 10 stocks by stake percentage and value. Our research confirms that mimicking these top hedge fund stock picks can help investors outperform the market.
10. Nvidia Corporation
- % of Portfolio: 0.64%
- Avg. Buy In Price Per Share: $52.52
- Shares Owned: 3.53 million
- Change in Shares From Last Quarter: -49.76%
- Last Update Date: 2024-09-30
Nvidia Corporation is a leading technology company specializing in high-performance GPUs and AI solutions. Founded in 1993, Nvidia drives innovation in gaming, professional visualization, and data science with its GeForce GPUs and CUDA platform. The company also offers Tegra processors for mobile computing and cloud gaming services like Shield and GeForce Now, cementing its role as a key player in digital transformation.
During Q3 2024, Nvidia recorded impressive growth with revenue reaching $35.1 billion—up 17% from Q2 2024 and 94% higher than a year ago. The tech giant also achieved a robust 55% net profit margin and boosted net income by 45% year-over-year to $19.31 billion, while adjusted earnings per share climbed to $0.81, marking a 19% quarterly increase and a 103% jump from Q3 2023.
9. Airbnb Inc
- % of Portfolio: 0.69%
- Avg. Buy In Price Per Share: $132.73
- Shares Owned: 3.62 million
- Change in Shares From Last Quarter: +6.32%
- Last Update Date: 2024-09-30
Airbnb, Inc. is an American online marketplace for short- and long-term homestays and travel experiences. Founded in 2008 by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia, Airbnb connects hosts with guests worldwide while charging a commission on each booking, making it the leading platform for short-term housing rentals.
During Q3 2024, Airbnb recorded 122.8 million nights and experiences booked, driving a 10% year-over-year revenue increase to $3.73 billion. The company posted a net income of $1.4 billion with a 36.7% net margin, although it narrowly missed EPS expectations by reporting $2.13 per share against a forecast of $2.14.
8. Sprouts Farmers Market (NASDAQ: SFM)
- % of Portfolio: 0.74%
- Avg. Buy In Price Per Share: $29.12
- Shares Owned: 4.44 million
- Change in Shares From Last Quarter: +0.06%
- Last Update Date: 2024-09-30
Sprouts Farmers Market is a leading supermarket chain specializing in natural and organic foods. It offers fresh produce, bulk foods, vitamins, supplements, meat, seafood, deli items, baked goods, dairy, frozen foods, and natural body care products, providing healthy and affordable grocery options.
During Q3 2024, Sprouts Farmers Market reported revenue of US$1.95 billion—a 14% year-over-year increase—driven by robust store performance and strategic expansion. The company achieved net income of US$91.6 million, reflecting a profit margin of 4.7%, while diluted earnings per share climbed to US$0.92, outperforming analyst expectations.
7. Verisign Inc
- % of Portfolio: 0.91%
- Avg. Buy In Price Per Share: $100.28
- Shares Owned: 3.18 million
- Change in Shares From Last Quarter: +4.90%
- Last Update Date: 2024-09-30
Verisign, Inc. is a key American internet infrastructure company based in Reston, Virginia. It operates two of the thirteen root nameservers and manages major domains like .com, .net, .name, and .cc, while also supporting the back-end systems for .jobs and .edu domains.
During Q4 2024, Verisign delivered revenue of $395.4 million—a 3.9% year-over-year increase—underscoring its steady performance in the domain name registry market. The company achieved GAAP EPS of $2, aligning with analyst estimates of $2.01, and maintained a robust operating margin of 66.7%, highlighting its pivotal role in supporting critical internet infrastructure.
6. Microsoft Corp
- % of Portfolio: 1.02%
- Avg. Buy In Price Per Share: $437.62
- Shares Owned: 1.56 million
- Change in Shares From Last Quarter: +383.58%
- Last Update Date: 2024-09-30
Microsoft Corporation is a leading technology company known for its Windows operating system, cloud services, and gaming products. Founded in 1975, Microsoft revolutionized personal computing and continues to innovate with popular products like Microsoft Office, Azure, and Xbox. As the largest software maker and one of the most valuable U.S. companies, Microsoft remains a global leader in technology.
In Q4 2024, Microsoft reported revenue of $64.7 billion—up 15% year-over-year—with operating income of $27.9 billion and net income of $22.0 billion, translating to diluted EPS of $2.95. Microsoft Cloud drove the quarter with record revenue of $36.8 billion, up 21% year-over-year, and the company returned $8.4 billion to shareholders through share repurchases and dividends.
5. Vertex Pharmaceuticals
- % of Portfolio: 1.14%
- Avg. Buy In Price Per Share: $242.46
- Shares Owned: 1.63 million
- Change in Shares From Last Quarter: +4.16%
- Last Update Date: 2024-09-30
Vertex Pharmaceuticals is a leading biotechnology company known for its innovative treatments for cystic fibrosis. Using precision medicine and advanced research, Vertex develops breakthrough therapies that improve patient health and drive progress in healthcare.
In Q3 2024, Vertex Pharmaceuticals (NASDAQ: VRTX) posted US$2.77 billion in revenue—up 12% YoY—with EPS of US$4.05, beating analyst estimates by 10%. Despite a slight dip in profit margin to 38%, net income reached US$1.05 billion and shares climbed 6.3%. Vertex now forecasts a 9.1% annual revenue growth over the next three years.
4. Apple Inc
- % of Portfolio: 1.15%
- Avg. Buy In Price Per Share: $204.17
- Shares Owned: 3.28 million
- Change in Shares From Last Quarter: +90.32%
- Last Update Date: 2024-09-30
Apple Inc. is a global technology leader known for its innovative consumer electronics and software. Headquartered in Cupertino, California, it designs iconic products like the iPhone, iPad, Mac, and Apple Watch, all integrated into a seamless ecosystem powered by iOS and macOS.
Apple reported record Q1 fiscal 2025 earnings with $124.3 billion in revenue (up 4% YoY) and diluted EPS of $2.40 (up 10% YoY). CEO Tim Cook praised the holiday lineup powered by Apple silicon and Apple Intelligence, while CFO Kevan Parekh highlighted strong margins and over $30 billion returned to shareholders. The company also declared a $0.25 per share cash dividend.
3. United Therapeutics
- % of Portfolio: 1.16%
- Avg. Buy In Price Per Share: $121.31
- Shares Owned: 2.16 million
- Change in Shares From Last Quarter: -0.89%
- Last Update Date: 2024-09-30
United Therapeutics Corporation develops innovative, life-extending therapies for critical lung diseases—particularly pulmonary arterial hypertension—with breakthrough treatments like Remodulin, Tyvaso, and Orenitram, while also advancing novel technologies in organ manufacturing.
United Therapeutics (UTHR) posted strong Q3 2024 results, with revenues up 23% to $748.9 million and net income rising 16% to $309.1 million, delivering diluted EPS of $6.39. Tyvaso drove a 33% revenue increase to $433.8M, marking the sixth consecutive record quarter amid high demand for pulmonary hypertension and high-risk neuroblastoma treatments. The company also expects key clinical data and regulatory milestones in 2025.
2. Novo-Nordisk AS
- % of Portfolio: 1.47%
- Avg. Buy In Price Per Share: $26.34
- Shares Owned: 8.19 million
- Change in Shares From Last Quarter: -10.65%
- Last Update Date: 2024-09-30
Novo Nordisk A/S is a leading Danish multinational pharmaceutical company headquartered in Bagsværd, with production in nine countries. Controlled by Novo Holdings A/S, it specializes in diabetes care with flagship semaglutide products like Ozempic, Rybelsus, and Wegovy, while also offering treatments in hemostasis, growth hormone, and hormone replacement therapies.
Novo Nordisk delivered strong 2024 financial results, with sales rising 25% to DKK 290.4 billion (approximately $41 billion) and operating profit increasing 25% to DKK 128.3 billion (around $18 billion). North America sales surged 30%, while International Operations grew 17%. The Diabetes and Obesity care segment led the growth, with revenues climbing 26% to DKK 271.8 billion (roughly $38.3 billion). With an anticipated dividend increase to DKK 11.40 ($1.68) per share, Novo Nordisk reinforces its leadership in the global pharmaceutical market.
1. Palantir Technologies
- % of Portfolio: 2.15%
- Avg. Buy In Price Per Share: $14.62
- Shares Owned: 38.42 million
- Change in Shares From Last Quarter: -2.77%
- Last Update Date: 2024-09-30
Palantir Technologies revolutionizes big data analytics with four core products: Palantir Gotham, an intelligence tool used by U.S. defense and counter-terrorism agencies; Palantir Foundry, which delivers robust data integration and analysis for major corporations; Palantir Apollo, a platform that streamlines continuous integration and delivery across environments; and Palantir AIP, enhancing advanced analytics capabilities.
Palantir Technologies (NASDAQ: PLTR) reported Q4 2024 revenue growth of 36% YoY to $828 million, with U.S. revenue surging 52% YoY to $558 million. The company closed record U.S. commercial contracts worth $803 million and issued robust FY 2025 revenue guidance of 31% YoY, outperforming consensus estimates. These strong results underscore Palantir’s leadership in AI-driven data analytics and its expanding influence in both government and commercial sectors.