10 Largest Hedge Funds in The World And Their Favorite Stock Picks

7. Renaissance Technologies (AUM: $36 billion) is not only one the largest hedge funds in the world but also one of the best performing ones. It was successful in attracting $7 billion in new funds from investors, even as its peers bled cash in the past year. RenTech’s Medallion Fund is a legend in the investment world. Medallion Fund is more profitable than other billionaire funds and has delivered $55 billion in profit over the last three decades.

When you have a such a cash cow, you wouldn’t want to share the milk with anyone else. That’s what Renaissance has been doing in this century. The Medallion Fund, known as the “biggest money-making machine”, is only open to RenTech’s employees. Renaissance also has a long-term institutional equities fund that makes large bets in publicly traded stocks. Its largest bet at the moment is a surprising healthcare stock.

Novo Nordisk A/S (ADR) (NYSE:NVO) was the No.1 holding for Renaissance Technologies which was the third largest buyer of this stock during the third quarter. The stock price has been under pressure falling by 23% as drug prices have come under regulatory scrutiny in USA. However, the long term potential of Novo Nordisk A/S (ADR)(NYSE:NVO) continues to remain strong as the world’s largest insulin maker will benefit from the growing per capita income in emerging markets in India. Microsoft Corporation (NASDAQ:MSFT) was the eighth largest position of Renaissance Technologies which is also favored by the other largest hedge funds in the world.