Renaissance Technologies, the firm founded by Jim Simons (Trades, Portfolio), disclosed in a regulatory 13F filing that its top trades during the first quarter included reductions to its positions in Apple Inc. (AAPL, Financial) and Taiwan Semiconductor Manufacturing Co. Ltd. (TSM, Financial) and the closure of its positions in Advanced Micro Devices Inc. (AMD, Financial) and Alphabet Inc. (GOOGL, Financial). With the proceeds, the firm boosted its holdings of Boeing Co. (BA, Financial), Pfizer Inc. (PFE, Financial) and UnitedHealth Group Inc. (UNH, Financial).
The New York-based firm applies complex mathematical models to analyze and execute trades, many of them automated. Renaissance predicts price movements in financial instruments by using models that are based on gathering as much data as possible and then looking for non-random movements to make predictions.
As of March, the firm’s $75.35 billion 13F equity portfolio contains 3,924 stocks, with 529 new positions and a quarterly turnover ratio of 23%. The top four sectors in terms of weight are health care, technology, consumer cyclical and industrials, representing19.97%, 16.25%, 12.33% and 10.40% of the equity portfolio.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Apple
Renaissance sold 7,090,086 shares of Apple (AAPL, Financial), chopping 99.87% of the position and 1.26% of its equity portfolio.
Shares of Apple averaged $147.55 during the fourth quarter; the stock is fairly valued based on its price-to-GF Value of approximately 1 as of Wednesday.
The Cupertino, California-based consumer electronics giant has a GF Score of 96 out of 100 based on a financial strength rank of 7 out of 10, a GF Value rank of 5 out of 10 and a rank of 10 out of 10 for momentum, profitability and growth.
Apple’s high profitability rank is driven by several positive investing signs, which include a five-star business predictability rank and an operating margin that has increased by approximately 2.7% per year on average over the past five years and outperforms more than 97% of global competitors.
Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) owns 915,560,382 shares of Apple, giving the stake 46.44% weight in its 13F equity portfolio. The position has been Berkshire’s top holding since December 2017.
Taiwan Semiconductor Manufacturing
Renaissance sold 4,913,600 shares of Taiwan Semiconductor Manufacturing (TSM, Financial), slicing 64.85% of the position and 0.50% of its equity portfolio.
Shares of Taiwan Semiconductor Manufacturing averaged $89.76 during the first quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.63 as of Wednesday.
The Taiwanese chipmaker has a GF Score of 99 out of 100 based on a rank of 8 out of 10 for financial strength and momentum and a rank of 10 out of 10 for profitability, growth and GF Value.
Berkshire sold all 8,292,724 shares of Taiwan Semiconductor Manufacturing, reducing its equity portfolio by 0.21%.
Advanced Micro Devices
The firm sold all 6,905,890 shares of Advanced Micro Devices (AMD, Financial), trimming 0.61% of its equity portfolio.
Shares of Advanced Micro Devices averaged $81.38 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.83 as of Wednesday.
The Santa Clara, California-based microprocessor company has a GF Score of 92 out of 100 based on a rank of 8 out of 10 for momentum and financial strength, a growth rank of 10 out of 10 and a rank of 7 out of 10 for profitability and GF Value.
Alphabet
Renaissance sold all 4,218,455 Class A shares of Alphabet (GOOGL, Financial), reducing its equity portfolio by 0.51%.
Shares of Alphabet averaged $95.94 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.82 as of Wednesday.
The Mountain View, California-based online search giant has a GF Score of 99 out of 100 based on a rank of 10 out of 10 for profitability and growth, a financial strength rank of 9 out of 10, a momentum rank of 8 out of 10 and a GF Value rank of 7 out of 10.
Alphabet’s high profitability rank is driven by several positive investing signs, which include a 4.5-star business predictability rank and an operating margin that has increased by approximately 2.40% per year on average over the past five years.
Boeing
The firm added 2,370,800 shares of Boeing (BA, Financial), expanding the position by 1,071.31% and its equity portfolio by 0.67%.
Shares of Boeing averaged $207.77 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.91 as of Wednesday.
The Arlington, Virginia-based aerospace giant has a GF Score of 65 out of 100 based on a momentum rank of 9 out of 10, a profitability rank of 6 out of 10, a GF Value rank of 5 out of 10, a financial strength rank of 3 out of 10 and a growth rank of 1 out of 10.
Pfizer
The firm invested in 11,078,514 shares of Pfizer (PFE, Financial), boosting the position by 1,033.98% and its equity portfolio by 0.60%.
Shares of Pfizer averaged $43.19 during the first quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.56 as of Wednesday.
The New York-based pharmaceutical company has a GF Score of 86 out of 100 based on a rank of 9 out of 10 for profitability and growth, a GF Value rank of 8 out of 10, a financial strength rank of 7 out of 10 and a momentum rank of 2 out of 10.
UnitedHealth Group
Renaissance purchased 912,256 shares of UnitedHealth Group (UNH, Financial), boosting the position by 169.35% and its equity portfolio by 0.57%.
Shares of UnitedHealth Group averaged $482.57 during the first quarter; the stock is modestly undervalued based on its price-to-GF Value ratio of 0.89 as of Wednesday.
The Minnetonka, Minnesota-based health insurance company has a GF Score of 95 out of 100 based on a rank of 10 out of 10 for profitability and growth, a financial strength rank of 7 out of 10, a GF Value rank of 6 out of 10 and a momentum rank of 5 out of 10.
