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Jim Simons' Top Five Portfolio Changes

August 13, 2013 | About:

Jim Simons founded and is the CEO of one of the world’s most successful hedge funds, Renaissance Technologies.

Renaissance Technologies employ complex mathematical models to analyze and execute trades, many of them automated. Renaissance uses computer-based models to predict price changes in easily-traded financial instruments.



The following five companies represent the stocks Simons made the largest changes to during the second quarter.

ARM Holdings PLC (ARMH)

During the second quarter, Jim Simons made the largest increase to his position in ARM Holdings. The guru upped his stake 11922.9% by adding a total of 2,599,200 shares. Simons purchased these shares at an average price of $43.04 per share. Since this buy, the price per share has decreased approximately -4.1%.

Simons now holds on to 2,621,000 shares of ARM Holdings, representing 0.56% of the company’s shares outstanding and 0.25% of his total portfolio. This is the also the largest stake he’s taken in the company to date.

Simons’ holding history as of the second quarter:

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ARM designs technology that creates digital products, from wireless, networking and consumer entertainment solutions to imaging, automotive, security and storage devices.

ARM Holdings’ historical revenue and net income:

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ARM’s second quarter financial results reported:

· Revenue up 24% to $264.3 million.

· Record net cash generation of £96m

· Interim dividend increased by 26%.

· Profit before tax and EPS up 30%.

ARM Holdings has a market cap of $19.31 billion. Its shares were traded at around $41.44 with a P/E ratio of 85.10, a P/S ratio of 19.30 and a P/B ratio of 9.20. The company had an annual average earnings growth of 17.1% over the past ten years.

GuruFocus rated ARM Holdings the business predictability rank of 2.5-star.

Kinross Gold Corporation (KGC)

Simons made his second largest increase in the gold producing company Kinross Gold Corp. The guru upped his stake by 5906%. He purchased 957,658 shares at an average price of $5.82 per share. Since this most recent increase, the price per share has dropped -5.3%.

Simons now holds 973,873 shares of Kinross Gold, representing 0.09% of the company’s shares outstanding and 0.013% of his total portfolio.

Simon’s holding history of Kinross Gold as of the second quarter:

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Kinross is a Canadian-based gold mining company with mines and projects in Brazil, Canada, Chile, Ghana, Mauritania, Russia and the U.S.

Kinross Gold’s historical revenue and net income:

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The company’s second quarter results noted:

· Revenue of $968.0 million, compared with $1,005.6 million in Q2 2012.

· Operating cash flow of $256.7 million, or $0.22 per share, compared to $268.0 million and $0.24 last year.

· Net earnings of $119.5 million, or $0.10 per share. Down from $156.8 million, or $0.14 per share, in Q2 2012.

· Net loss of $2,481.9 million compared to net earnings of $113.9 million last year.

Kinross Gold has a market cap of $6.21 billion. Its shares are currently trading at around $5.44 with a P/E ratio of 9.00, a P/S ratio of 1.50 and a P/B ratio of 0.60. The company’s dividend yield is currently at 2.90%.

Coach (COH)

During the second quarter, Simons increased his position in Coach by 3889.72%. The guru bought a total of 832,400 shares at an average price of $56.24 per share. Since his increase, the price per share has dropped -5.5% from his average purchase price.

Simons currently holds 853,800 shares of Coach, representing 0.30% of the company’s shares outstanding and 0.13% of his total portfolio.

Simons’ holding history as of June 30:

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Coach is an American marketer or fine accessories and gifts for women and men. Their products include handbags, men’s bags, women’s and men’s small leathergoods, footwear, outerwear, watches, travel accessories, scarves, sunwear, fragrance, jewelry and related accessories.

Coach’s historical revenue and net income:

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Coach’s fourth quarter results highlighted:

· Net sales of $1.22 billion, up from $1.16 billion in Q2 2012.

· Net income was $254 million, or $0.89 per share, compared to $251 and $0.86 per share last year.

· The company noted that it had entered into a binding agreement to sell the Reed Krakoff business.

· During the fiscal year 2013, Coach repurchased and retired over 7 million shares, spending a total of $400 million.

The Peter Lynch Chart shows that Coach currently appears to be undervalued:

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Coach has a market cap of $14.92 billion. Its shares are currently trading at around $53.10 with a P/E ratio of 14.40, a P/S ratio of 3.10 and a P/B ratio of 6.70. The company had an annual average earnings growth of 22.3% over the past ten years.

GuruFocus rated Coach the business predictability rank of 3.5-star.

BlackBerry (BBRY)

Jim Simons all but sold out of his position in BlackBerry over the duration of the second quarter. The guru cut his position in the company by -99.27%. Simons sold a total of 2,009,108 shares at an average price of $14.48. Since his sell, the price per share has dropped -23.2%.

Simons now owns a much smaller 14,792 shares of BlackBerry, representing a tiny 0.0004% of his total portfolio.

Simons’ holding history of BlackBerry as of the second quarter:

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BlackBerry is a line of wireless handheld devices and services designed and marketed BlackBerry. BlackBerry innovated the wireless communications technology world in 1999 when it designed its first email pager.

BlackBerry’s historical revenue and net income:

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On Monday, the company announced that they were exploring the option of selling the smartphone company. As a result of this announcement, shares are trading up nearly 12% today.

BlackBerry has a market cap of $6.21 billion. Its shares are trading at around $12.04 with a P/E ratio of 8.40, a P/S ratio of 0.50 and a P/B ratio of 0.50. The company had an annual average earnings growth of 43.3% over the past ten years.

Marvell Technology Group (MRVL)

Simons also made a large cut in his position in Marvell Technology. The guru decreased his position by -98.68%. The guru sold a total of 2,822,000 shares at an average price of $10.84. Since his sell the share price has jumped back up 20.1%.

Simons now holds 37,644 shares of Marvell Technology, representing 0.01% of the company’s shares outstanding and 0.0012% of his total portfolio.

Simons holding history as of the second quarter:

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Marvell is a global semiconductor provider of high-performance analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.

Marvell’s historical revenue and net income:

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The Peter Lynch Chart shows that Marvell Technology currently appears to be overvalued:

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Marvell Technology has a market cap of $6.52 billion. Its shares are trading at around $13.25 with a P/E ratio of 27.00, a P/S ratio of 2.30 and a P/B ratio of 1.40. The company had an annual average earnings growth of 14% over the past ten years.

GuruFocus rated Marvell the business predictability rank of 2-star.

Check out Jim Simons’ second quarter portfolio here.

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