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Renaissance Man Jim Simons - A Tale of Three Pharmaceuticals and Remarkable Gains

July 21, 2013 | About:
Sally Jones

Sally Jones

49 followers
In 1982 Guru Jim Simons founded Renaissance Technologies, an investment management company known for hiring mathematicians and physicists and adhering to mathematical and statistical methods to produce superior returns. One of the world's most successful hedge funds, the private investment firm has over $20 billion under management. The Renaissance Technologies portfolio currently lists 2,848 stocks, 750 of them new, a quarter-over-quarter turnover of 42%, and a total value of $41.2 billion.

Here’s a look at the three pharmaceutical companies in the portfolio’s top six holdings:

Eli Lilly and Company (LLY), Up 15% over 12 Months

Weighting: 1.5%

Shares Owned: 10,555,805

Share Price: $50.60

With 0.93% of shares outstanding, Jim Simons is the third top Guru shareholder of LLY.

In five years of trading, Simons has had only one losing quarter in the first quarter of 2013, losing 6.3%. He has made gains of more than 40% in ten consecutive quarters; his highest gain of 50.9% was in the third quarter of 2009.

Eli Lilly and Company (LLY) has a market cap of $56.24 billion. LLY shares were traded at around $50.60 with a P/E ratio of 12.30 and P/S ratio of 2.50. The dividend yield of Eli Lilly and Company stocks is 3.87%. Eli Lilly had an annual average earnings growth of 7% over the past 10 years. GuruFocus rated Eli Lilly and Company the business predictability rank of 2.5-star.

Track historical pricing:

1374360128751.png

Bristol-Myers Squibb Company (BMY), Up 26% over 12 Months

Weighting: 1.4%

Shares Owned: 14,115,900

Share Price: $44.19

With 0.86% of shares outstanding, Jim Simons is the top two Guru shareholder of BMY, second only to Vanguard Health Care Fund with 1.1% shares outstanding.

In five years of trading, Simons has had had all gaining quarters, topping out at a 119.6% gain in the second quarter of 2009. Check out his remarkable trading history:



Bristol-Myers Squibb Company started out in 1887 as the Bristol-Myers Company. Bristol-Myers Squibb Company (BMY) has a market cap of $72.19 billion. BMY shares were traded at around $44.19 with a P/E ratio of 50.70 and P/S ratio of 4.57. The dividend yield of Bristol-Myers Squibb Company stocks is 3.15%. The company has had an annual average earnings growth of 1.6% over the past 10 years.

Track historical pricing:

1374361061818.png

Novo Nordisk A/S (NVO), Up 13% over 12 Months

Weighting: 1%

Shares Owned: 2,627,600

Share Price: $163.54

With 0.47% of shares outstanding, Jim Simons is the top two Guru shareholder of NVO second only to Ken Fisher who owns 0.48% shares outstanding.

In five years of trading, Simons has had a remarkable success streak, all gaining quarters, until the first quarter of 2013 posted a loss of 6.5%.

Check out his high-gains trading history:



Novo Nordisk A/S (NVO) is a healthcare company engaged in the discovery, development, manufacturing and marketing of pharmaceutical products. The company has a market cap of $89.98 billion. NVO shares were traded at around $163.54 with a P/E ratio of 22.60 and P/S ratio of 6.37. The dividend yield of Novo Nordisk A/S stocks is 1.38%. The company has had an annual average earnings growth of 7.1% over the past 10 years.

Track historical pricing:

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Employing complex mathematical models to analyze and execute trades, Renaissance Technologies' hedge funds trade in markets around the world. Renaissance uses computer-based models to predict price changes in easily-traded financial instruments. These models are based on analyzing as much data as can be gathered, then looking for non-random movements to make predictions.

Here is the complete portfolio of Jim Simons.





1. Jim Simons's Undervalued Stocks

2. Jim Simons's Top Growth Companies

3. Jim Simons's High Yield stocks

4. Stocks that Jim Simons keeps buying

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GuruFocus Real Time Picks reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only.

The GuruFocus Score Board of Gurus shows which investors produced the largest average returns in the past 6 and 12 months, as well as on a historical basis.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.1/5 (11 votes)

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