Jim Simons' Firm Chops Amazon, Packs Further into Apple, Nvidia

Firm releases 2nd-quarter portfolio

Summary
  • Firm nearly sold out of Amazon.
  • It expanded its stakes in Apple and Nvidia.
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Jim Simons (Trades, Portfolio), the founder and CEO of Renaissance Technologies Corporation, recently filed the firm's 13F report for the second quarter of 2023. Established in 1982, Renaissance Technologies is a private investment firm based in New York and is recognized as one of the world's most successful hedge funds. Simons, a renowned mathematician, has built a reputation for his firm by leveraging complex mathematical models to predict and exploit price changes in highly liquid securities.

Portfolio Overview

As of the end of Q2 2023, Simons' portfolio contained 3,864 stocks with a total value of $69.39 billion. The top holdings were NVO (2.19%), META (1.87%), and AAPL (1.38%).

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Top Three Trades of the Quarter

The following were the firm's top three trades of the quarter:

Apple Inc (AAPL, Financial)

During the quarter, Simons purchased 4,912,234 shares of Apple Inc (AAPL), bringing the total holding to 4,921,796 shares. This trade had a 1.38% impact on the equity portfolio. The stock traded for an average price of $174.1 during the quarter. As of August 15, 2023, Apple's stock price was $178.1, with a market cap of $2,784.46 billion. The stock has returned 3.33% over the past year. GuruFocus gives Apple a financial strength rating of 7 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, Apple has a price-earnings ratio of 29.93, a price-book ratio of 46.26, a PEG ratio of 1.72, a EV-to-Ebitda ratio of 22.48, and a price-sales ratio of 7.38.

Amazon.com Inc (AMZN, Financial)

Simons reduced the firm's investment in Amazon.com Inc (AMZN) by 8,999,016 shares, impacting the equity portfolio by 1.23%. The stock traded for an average price of $114.02 during the quarter. As of August 15, 2023, Amazon's stock price was $138.0995, with a market cap of $1,424.88 billion. The stock has returned -3.66% over the past year. GuruFocus gives Amazon a financial strength rating of 6 out of 10 and a profitability rating of 8 out of 10. In terms of valuation, Amazon has a price-earnings ratio of 108.74, a price-book ratio of 8.45, a PEG ratio of 4.69, a EV-to-Ebitda ratio of 24.32, and a price-sales ratio of 2.68.

NVIDIA Corp (NVDA, Financial)

During the quarter, Simons bought 1,852,712 shares of NVIDIA Corp (NVDA), bringing the total holding to 1,855,904 shares. This trade had a 1.13% impact on the equity portfolio. The stock traded for an average price of $331.15 during the quarter. As of August 15, 2023, NVIDIA's stock price was $446.3232, with a market cap of $1,102.42 billion. The stock has returned 133.93% over the past year. GuruFocus gives NVIDIA a financial strength rating of 8 out of 10 and a profitability rating of 10 out of 10. In terms of valuation, NVIDIA has a price-earnings ratio of 232.46, a price-book ratio of 44.99, a PEG ratio of 11.98, a EV-to-Ebitda ratio of 167.35, and a price-sales ratio of 43.03.

In conclusion, the Q2 2023 13F filing reveals that Simons continues to leverage his firm's unique investment philosophy, focusing on mathematical models to guide investment decisions. The top trades of the quarter reflect a balanced approach, with investments in technology giants like Apple, Amazon, and NVIDIA.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure