10 Best Stocks to Buy According to Quant Genius Jim Simons’ Renaissance Technologies

Published October 4, 2021 at 9:20 am EDT Updated September 7, 2026 at 1:37 pm EDT

In this article, we will take a look at the 10 best stocks to buy according to Jim Simon’s Renaissance Technologies.

Legendary billionaire, mathematician, philanthropist, and founder of the quantitative hedge fund Renaissance Technologies, Jim Simons is an expert in quantitative market analysis. After earning his bachelor’s degree in Mathematics from the Massachusetts Institute of Technology in 1958, and his Ph.D. from the University of California, Berkeley in 1961, Jim Simons devoted himself to an esteemed career in academia and research. Between 1964 and 1968, Simons served as a member of the research staff of the Communications Research Division for the Institute for Defense Analyses (IDA), as well as taught mathematics at the Massachusetts Institute of Technology and Harvard University. He later joined Stony Brook University as well, where he ultimately was appointed chairman of the mathematics department. In 1978, Jim Simons delved into the world of Finance and founded Renaissance Technologies in 1982, where he served as the chief executive officer until his retirement in 2010. In January 2021, Simons stepped down as board chairman of Renaissance Technologies.

According to the most recent 13F Filings, Jim Simon’s Renaissance Technologies, as an investment fund, manages more that $80 billion in 13F securities. Renaissance Technologies’ portfolio is diversified across 13 distinct sectors, with the Healthcare sector as the largest, accounting for 15.6% of the fund’s total portfolio. A majority of the companies in the fund’s portfolio are large-cap stocks, with stocks sizing up to more than $10 billion in market cap making up 12% of the fund’s total value.

Some of the top stocks in the investment portfolio of Renaissance Technologies at the end of the second quarter of 2021 include Amazon.com, Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), Moderna, Inc. (NASDAQ:MRNA), Microsoft Corporation (NASDAQ:MSFT) and NVIDIA Corporation (NASDAQ:NVDA), among others discussed in detail below.

Jim Simons of Renaissance Technologies

Our Methodology

With this background in mind, let us now look towards the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies. We made use of Renaissance Technologies’ 13F portfolio for the second quarter for this analysis. These are the top 10 stocks in Simons’ second quarter portfolio based on the value of his fund’s stakes.

Why should we pay attention to Jim Simons’ stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

With this context in mind, let’s now start discussing the 10 best stocks to buy according to Jim Simon’s Renaissance Technologies.

10 Best Stocks to Buy According to Jim Simons’ Renaissance Technologies

10. Monster Beverage Corporation (NASDAQ:MNST)

Simons’ Stake Value: $655.6 million

Percentage of Jim Simons’ 13F Portfolio: 0.81%

Number of Hedge Fund Holders: 46

Monster Beverage Corporation (NASDAQ:MNST) is a California-based beverage company that manufactures and distributes energy drinks. Some of its most notable brands include Monster Energy, Relentless and Burn. Ranked tenth on our list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, Monster Beverage Corporation has a market capitalization of $48.44 billion.

Jim Simons’ Renaissance Technologies presently holds over 7.1 million shares of Monster Beverage Corporation, amounting to more than $655.6 million in worth and representing 0.81% of the fund’s portfolio. By the end of the second quarter of 2021, 46 hedge funds out of the 873 tracked by Insider Monkey held stakes in Monster Beverage Corporation, worth roughly $2.31 billion. This is compared to 45 hedge funds in the previous quarter with a total stake value of approximately $2.38 billion.

In the second quarter of 2021, Monster Beverage Corporation reported earnings per share of $0.75, beating estimates by $0.08. Monster Beverage Corporation also reported revenues amounting to $1.46 billion, surpassing forecast estimates by $70.08 million.

On July 30, Deutsche Bank analyst Steve Powers raised the firm’s price target on Monster Beverage to $108 from $105 and kept a Buy rating on the shares.

9. The Kroger Co. (NYSE:KR)

Simons’ Stake Value: $679.2 million

Percentage of Jim Simons’ 13F Portfolio: 0.84%

Number of Hedge Fund Holders: 39

The Kroger Co. (NYSE:KR) is a retail corporation based in Cincinnati, Ohio. The company operates supermarkets and convenience stores throughout the United States, and is recognized as on of the countries largest retailers. Ranked ninth on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, The Kroger Co. has a market capitalization of $29.99 billion.

Jim Simons’ Renaissance Technologies currently holds over 17.7 million shares of The Kroger Co., amounting to more than $679.2 million in worth and representing 0.84% of the fund’s total portfolio. By the end of the second quarter of 2021, 39 hedge funds out of the 873 tracked by Insider Monkey held stakes in The Kroger Co., worth around $3.56 billion. This is compared to 35 hedge funds in the previous quarter with a total stake value of approximately $3.15 billion.

In the second quarter of 2021, The Kroger Co. reported earnings per share of $0.73, beating estimates by $0.19. The company also reported revenues amounting to $30.49 billion, surpassing estimates by $463.23 million.

On September 13, BMO Capital analyst Kelly Bania raised the firm’s price target on The Kroger Co. to $39 from $36 but kept a Market Perform rating on the shares.

Out of the hedge funds being tracked by Insider Monkey’s database, Warren Buffett’s Berkshire Hathaway is a leading shareholder in The Kroger Co. with 61.78 million shares worth more than $2.36 billion.

Just like Amazon.com, Inc., Alphabet Inc., Moderna, Inc., Microsoft Corporation and NVIDIA Corporation, The Kroger Co. is one of the best stocks in Jim Simons’ portfolio.

8. Moderna, Inc. (NASDAQ:MRNA)

Simon’s Stake Value: $749.2 million

Percentage of Jim Simon’s 13 Portfolio: 0.93%

Number of Hedge Fund Holders: 37

Moderna, Inc. is a Cambridge-based pharmaceutical and biotechnology company that focuses on vaccine technologies. Ranked eighth on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, Moderna, Inc. has a market capitalization of $164.65 billion.

At present, Jim Simons’ Renaissance Technologies holds over 3.18 million shares of Moderna, Inc., amounting to more than $749.2 million in worth and representing 0.93% of the fund’s total portfolio. By the end of the second quarter of 2021, 37 hedge funds out of the 873 tracked by Insider Monkey held stakes in Moderna, Inc., worth around $5.75 billion. This is compared to 39 hedge funds in the previous quarter with a total stake value of approximately $1.64 billion.

On August 5, Moderna, Inc. released its quarterly earnings for the second quarter of 2021, with reported earnings per share at $6.46, crossing market estimates by $0.60. Additionally, the company reported revenues of $4.35 billion, beating forecast estimates by $120.59 million.

On August 6, Piper Sandler analyst Edward Tenthoff downgraded Moderna, Inc. to Neutral from Overweight with a price target of $445, up from $246, after the company’s results for the second quarter.

Just like Amazon.com, Inc., Alphabet Inc., Moderna, Inc., Microsoft Corporation and NVIDIA Corporation, Moderna, Inc. is one of the best stocks in Jim Simons’ portfolio.

In the Q2 2021 investor letter of Carillon Tower Advisers, the fund mentioned Moderna, Inc.. Here is what the fund said:

“Moderna is a biotechnology company pioneering messenger RNA (mRNA) therapeutics and vaccines. The stock outperformed in the quarter, as the firm’s COVID-19 vaccine has shown effectiveness against the emerging variants of the disease, specifically the now prevalent Delta variant. The potential need for additional booster shots of the vaccine to maintain longer-term immunity as well as protection against possible future variants is also contributing to the stock’s move higher.”

7. Atlassian Corporation Plc (NASDAQ:TEAM)

Simons’ Stake Value: $845.9 million

Percentage of Jim Simons’ 13F Portfolio: 1.05%

Number of Hedge Fund Holders: 64

Atlassian Corporation Plc (NASDAQ:TEAM) is an Australian software company that is involved in the development of products for software developers, project managers and other software development teams. Its most notable product is JIRA, a workflow management system for teams to plan, track, collaborate, and manage projects. Ranked seventh on our list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, Atlassian Corporation Plc has a market capitalization of $98.39 billion.

Jim Simons’ Renaissance Technologies currently holds 3.29 million shares of Atlassian Corporation Plc, amounting to $845.9 million in worth. These shares account for 1.05% of the fund’s portfolio. By the end of the second quarter of 2021, 64 hedge funds tracked by Insider Monkey held stakes in Atlassian Corporation Plc worth around $4.17 billion, compared to 67 hedge funds in the previous quarter with a total stake value of approximately $3.95 billion.

In the second quarter of 2021, Atlassian Corporation Plc issued its quarterly earnings report, with actual earnings per share at $0.37, beating estimates by $0.05. The company also reported a revenue of $501.36 million that surpassed estimated revenues by $27.48 million.

On September 27, Truist analyst Joel Fishbein raised the firm’s price target on Atlassian Corporation Plc to $400 from $270 but kept a Hold rating on the shares, noting that the firm awaited a more attractive level in the stock, despite the company’s success due to its transition to the cloud.

In the Q2 2021 Investor Letter, Baron Opportunity Fund highlighted a few stocks and Atlassian Corporation Plc is one of them. Here is what the fund said:

“Atlassian Corporation Plc is a software leader that makes tools that are used by thousands of teams worldwide, thus its ticker TEAM. Atlassian’s tools “help teams collaborate, build, and create together” (quote from Atlassian’s website), with an emphasis on designing, developing, and maintaining software, including JIRA for team planning and project management, Confluence for team content creation and sharing, HipChat for team messaging and communications, Bitbucket for team software code sharing and management, and JIRA Service Desk for team services and support use cases. Atlassian is the recognized market leader for information technology team planning and project management software, and has extended its product offering into tangential areas, such as those listed above. The company is in the midst of transitioning its business model to the cloud, which will help it drive faster product innovation, more seamlessly integrate its product families, and raise the effective price realization for its suite of products. Atlassian is run by its two visionary founders, has strong competitive advantages, and we think it should be able to grow revenue over 25% for many years with best-in-class free cash flow margins.”

6. Target Corporation (NYSE:TGT)

Simons’ Stake Value: $870.3 million

Percentage of Jim Simons’ 13F Portfolio: 1.08%

Number of Hedge Fund Holders: 66

Target Corporation (NYSE:TGT) is a retail corporation that operates large-scale food and merchandise stores. The company has a market capitalization of $116.30 billion and is ranked sixth on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies.

At present, Jim Simons’ Renaissance Technologies holds 3.6 million shares of Target Corporation, amounting to $870.3 million in worth. These shares account for 1.08% of the fund’s total investment portfolio. By the end of the second quarter of 2021, 66 hedge funds tracked by Insider Monkey held stakes in Target Corporation worth around $5.86 billion, compared to 60 hedge funds in the previous quarter with a total stake value of approximately $4.76 billion.

In the second quarter of 2021, Target Corporation issued its quarterly earnings report, with reported earnings per share at $3.38, beating estimates by $1.73. The company also reported a revenue of $22.98 billion that surpassed estimated revenues by $2.86 billion.

On August 19, DA Davidson analyst Michael Baker raised the firm’s price target on Target Corporation to $285 from $240 and kept a Buy rating on the shares.

Just like Amazon.com, Inc., Alphabet Inc., Moderna, Inc., Microsoft Corporation and NVIDIA Corporation, Target Corporation is one of the best stocks in Jim Simons’ portfolio.

In the Q2 2021 investor letter of Nelson Capital Management, the fund mentioned Target Corporation. Here is what the fund said:

“We added Target (tkr: TGT) to our consumer staples sector. Target offers a broad array of products in owned and known brand items at affordable prices. Its omnichannel fulfilment centers allow customers to receive their items via in-store pickup, curbside pickup, same-day shipping and regular shipping while simultaneously reducing operating costs. With a significantly lower valuation than peers and a unique operating strategy, Target is an attractive holding.”

5. Amazon.com, Inc. (NASDAQ:AMZN)

Simons’ Stake Value: $896.6 million

Percentage of Jim Simons’ 13F Portfolio: 1.11%

Number of Hedge Fund Holders: 271

Amazon.com, Inc. is a multinational company that provides a platform for e-commerce, cloud computing, digital streaming services and artificial intelligence. Ranked fifth on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, Amazon.com, Inc. has a market capitalization of $1.72 trillion.

Jim Simons’ Renaissance Technologies currently owns 260,655 shares of Amazon.com, Inc., worth $896.6 million and accounting for 1.11% of the fund’s portfolio. By the end of the second quarter of 2021, 271 hedge funds out of the 873 tracked by Insider Monkey held stakes in Amazon.com, Inc., worth roughly $60.49 billion. This is compared to 243 hedge funds in the previous quarter with a total stake value of approximately $50.4 billion.

Amazon.com, Inc. last released its earnings report for the second quarter of 2021 on July 28, with reported earnings per share at $15.12, beating estimates of $12.29 by $2.83. The e-commerce company also reported quarterly revenues of $113.08 billion, falling short of the estimated revenues by $2.01 billion.

Out of the hedge funds being tracked by Insider Monkey, Martyn Taylor’s Crake Asset Management is a leading shareholder in Amazon.com, Inc. with 68,500 shares worth more than $235 billion.

In the Q2 2021 investor letter of L1 Capital, the fund mentioned Amazon.com, Inc.. Here is what the fund said:

“Amazon flipped from being the largest detractor from portfolio performance in the March 2021 quarter, to one of the leading contributors in the June 2021 quarter. We took advantage of negative near-term sentiment in the March 2021 quarter to add to our Amazon investment. We continue to view Amazon as one of the best positioned businesses globally, with its share price still not reflecting fair value.”

4. NVIDIA Corporation (NASDAQ:NVDA)

Simons’ Stake Value: $928.7 million

Percentage of Jim Simons’ 13F Portfolio: 1.15%

Number of Hedge Fund Holders: 86

NVIDIA Corporation is a multinational technology company based in California that designs graphics processing units for gaming and professional purposes, alongside chip units and semiconductors. Ranked fourth on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, NVIDIA Corporation has a market capitalization of $541.50 billion.

Jim Simons’ Renaissance Technologies currently owns 1.16 million shares of NVIDIA Corporation, worth $928.7 million and accounting for 1.15% of the fund’s investment portfolio. By the end of the second quarter of 2021, 86 hedge funds out of the 873 tracked by Insider Monkey held stakes in NVIDIA Corporation, worth roughly $9.09 billion. This is compared to 80 hedge funds in the previous quarter with a total stake value of approximately $6.2 billion.

In the second quarter of 2021, NVIDIA Corporation reported earnings per share of $0.55, beating estimates by $0.05. The company also reported revenues amounting to $3.87 billion, an increase of 49.90% on a year-over-year basis, surpassing forecast estimates by $210.22 million.

On September 17, BofA analyst Vivek Arya raised the firm’s price target on NVIDIA Corporation to $275 from $260 and kept a Buy rating on the shares, noting the important role of semiconductors in the global economy.

In the Q2 2021 investor letter of Harding Loevner, the fund mentioned NVIDIA Corporation. Here is what the fund said:

“Within IT, shares of US-based computer chip developer NVIDIA continued their climb as rising demand across segments-from work-from-home laptops to data centers to cryptocurrency mining rigs-led to shortages that translated into surging prices for its chips. Such was the windfall that NVIDIA even made technical changes to some of its products to make them towards waht it believes are more sustainable uses. Less attractive to cryptocurrency miners, to steer scarce supply viewed by geography, the lion’s share of excess returns came from good stock performance in the US. In addition to the contributions from NVIDIA and our health care holdings, a pair of IT software and service providers also aided relative returns.”

3. Zoom Video Communications, Inc. (NASDAQ:ZM)

Simons’ Stake Value: $1.03 billion

Percentage of Jim Simons’ 13F Portfolio: 1.28%

Number of Hedge Fund Holders: 59

Zoom Video Communications, Inc. (NASDAQ:ZM) is a communications technology company based in California. The company provides a videotelephony platform and online chat services that are used for teleconferencing, telecommuting, and social interactions. Ranked third on our list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, Zoom Video Communications, Inc. has a market capitalization of $81.08 billion.

At present, Jim Simons’ Renaissance Technologies holds 2.66 million shares of Zoom Video Communications, Inc., amounting to $1.03 billion in worth and representing 1.28% of the fund’s portfolio. By the end of the second quarter of 2021, 59 hedge funds out of the 873 tracked by Insider Monkey held stakes in Zoom Video Communication, Inc., worth $8.48 billion. This is compared to 54 hedge funds in the previous quarter with a total stake value of approximately $5.67 billion.

For the second quarter of 2021, Zoom Video Communications, Inc. reported earnings per share of $0.92, crossing estimates by $0.47. The company also reported revenues amounting to $663.52 million, an increase of 355.01% on a year-over-year basis, surpassing forecast estimates by $163.16 million.

Out of the hedge funds being tracked by Insider Monkey, Scotland-based investment firm Aubrey Capital Management is a leading shareholder in Zoom Video Communications, Inc. with 16,200 shares worth more than $6.26 billion.

Artisan Partners, in their first-quarter 2021 investor letter, mentioned Zoom Video Communications, Inc., and shared their insights on the company. Here’s what they said:

“We concluded our campaigns in Zoom Video Communications. We have been paring our position in Zoom for several quarters, anticipating the reduced need for video conferencing as vaccination rates climb and people return to their workplaces. That said, we believe there is a strong case to be made that the pandemic has prompted a permanent inflection in videoconferencing’s importance—sustainably higher remote work arrangements, more online learning and less business travel. Furthermore, the company’s dramatically expanded user base (up 485% YoY in Q3) positions it well to cross sell additional services, Zoom Phone in particular. The long-term future remains bright, but we decided to end our successful investment campaign in favor of opportunities in our pipeline with more attractive near-term growth prospects.”

2. VeriSign, Inc. (NASDAQ:VRSN)

Simons’ Stake Value: $1.1 billion

Percentage of Jim Simons’ 13F Portfolio: 1.37%

Number of Hedge Fund Holders: 41

VeriSign, Inc. (NASDAQ:VRSN) is a Virginia-based internet company that operates a diverse network infrastructure, and provides authentication and verification of businesses throughout the world. Ranked second on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies, VeriSign, Inc. has a market capitalization of $23.93 billion.

According to the recent 13F Filings, Jim Simons’ Renaissance Technologies holds more than 4.8 million shares of VeriSign, Inc., amounting to $1.1 billion in worth and representing 1.37% of the fund’s portfolio. By the end of the second quarter of 2021, 41 hedge funds out of the 873 tracked by Insider Monkey held stakes in VeriSign, Inc., worth $6.1 billion. This is compared to 42 hedge funds in the previous quarter with a total stake value of approximately $5.63 billion.

On July 22, VeriSign, Inc. issued its earnings report for the second quarter of 2021. It posted earnings per share of $1.31, missing the estimates by $0.02. However, the reported revenue over the period was $329.4 million, beating the market expectations by $0.53 million.

On April 23, Citi analyst Nicholas Jones raised the firm’s price target on VeriSign, Inc. to $245 from $235 and kept a Neutral rating on the shares.

Out of the hedge funds being tracked by Insider Monkey’s database, Warren Buffett’s Berkshire Hathaway is a leading shareholder in VeriSign, Inc. with over 12.8 million shares worth more than $2.9 billion.

1. Novo Nordisk A/S (NYSE:NVO)

Simons’ Stake Value: $2.02 billion

Percentage of Jim Simons’ 13F Portfolio: 2.52%

Number of Hedge Fund Holders: 20

Novo Nordisk A/S (NYSE:NVO) is a multinational pharmaceutical and biotechnology company based in Denmark that focuses on the provision of diabetes medication and hormone replacement therapy (HRT). The company has a market capitalization of $176.71 billion and is ranked first on the list of the 10 best stocks to buy according to Jim Simons’ Renaissance Technologies.

According to the recent 13F Filings, Jim Simons’ Renaissance Technologies holds more than 24 million shares of Novo Nordisk A/S, amounting to $2.02 billion in worth and accounting for 2.52% of the fund’s total investment portfolio. By the end of the second quarter of 2021, 20 hedge funds out of the 873 tracked by Insider Monkey held stakes in Novo Nordisk A/S, worth $3.56 billion, down from 23 hedge funds in the preceding quarter with a total stake value of approximately $2.92 billion.

The company released its quarterly earnings report for the second quarter of 2021 on August 4, with reported earnings per share at $0.84, crossing estimates by $0.08. Additionally, the company reported revenues of $5.26 billion, beating estimated revenues by $89.35 million.

Out of the hedge funds being tracked by Insider Monkey’s database, Washington-based investment firm, Fisher Asset Management is one of the leading shareholders in Novo Nordisk A/S with over 16 million shares worth more than $1.34 billion.

In the Q2 2021 investor letter of LRT Capital, the fund mentioned Novo Nordisk A/S. Here is what the fund had to say:

“Novo Nordisk is the global leader in insulin, which is, sadly, a growing business as more and more people around the world suffer from diabetes. Millions of people need daily injections of insulin to stay alive50, a number that, unfortunately, is likely to continue to grow by millions more in the coming decade. It may seem at first glance that insulin should be a commoditized business, after all, it was discovered and synthesized over a hundred years ago, but nothing could be further from the truth. There are many types of insulin and Novo Nordisk has spent billions on R&D over the years to develop new products. On February 11th, the company reported favorable results from a phase-3 trial of Semaglutide, a drug that is currently used for Type 2 diabetes treatment. The study evaluated the use of Semaglutide for weight loss treatment in non-diabetic patients and found a significant impact on weight loss for patients receiving Semaglutide vs. the placebo control group. If Semaglutide is approved for weight loss treatment, we expect it will be meaningfully accretive to the company’s bottom line.

The company’s proprietary product line supports returns on invested capital of over 40%, and while sales growth is relatively slow (+6% annualized CAGR over the past decade), the company’s shares trade at a reasonable valuation of only 22x forward earnings. For a company with an extremely predictable business, high returns on capital, and an easily forecastable future, we believe this to be highly attractive.

Shares are +34.43% year-to-date and +40.92% over the past twelve months.”

You can also take a look at 10 Best Undervalued Dividend Stocks to Buy Now and 10 Stocks that Released Solid Quarterly Earnings

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