In his third-quarter update, Renaissance Technologies founder and famed "Quant King” Jim Simons showcased some notable pivots within his $66.5 billion portfolio.
Jim Simons Ups Microsoft Stake, Trims Other Tech Names
Simons increased his stake in Microsoft Corp MSFT, betting on the tech giant's expansion in cloud and AI sectors, Renaissance revealed in a Wednesday SEC filing.
At the same time, he pared back investments in high-growth stocks such as Tesla Inc TSLA and NVIDIA Corp NVDA. Nvidia's AI boom and Tesla's market lead in EVs didn't deter Simons from reducing exposure, perhaps as a hedge against market corrections.
Broadcom Inc AVGO was also scaled back, suggesting Renaissance might be positioning itself more defensively as tech valuations reach historic highs.
Renaissance's move to fortify positions in well-established tech names could signal a more cautious stance on speculative growth.
Palantir Takes The Lead In Renaissance's Portfolio
Among all the holdings, Palantir Technologies Inc PLTR now stands as Renaissance's largest position, making up 2.15% of the portfolio. Known for its deep government contracts and burgeoning AI applications, Palantir's data-centric profile aligns well with Simons' quant-driven approach.
This shift highlights a strategic tilt toward resilient, data-focused tech plays, reflecting Simons' long-term confidence in the power of predictive analytics and secure data solutions.
Read Also: Can Palantir Sustain Its 300X Valuation After Climbing 266% This Year?
Top Buys: Microsoft, Apple, Cisco
Alongside Microsoft, Simons added significantly to Apple Inc AAPL and Cisco Systems Inc CSCO. This trio signals a preference for big-cap stability in a year marked by market volatility.
While Microsoft's AI and cloud growth makes it a solid pick, Apple and Cisco bring diverse revenue streams, from consumer tech to networking infrastructure, giving Renaissance a balanced tech exposure.
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