Billionaire Jim Simons’ 2023 Portfolio: Top 5 Stock Picks

In this article, we discuss billionaire Jim Simons’ top 5 stock picks in 2023. If you want to see more stocks in this selection, check out Billionaire Jim Simons’ 2023 Portfolio: Top 15 Stock Picks. 

5. Airbnb, Inc. (NASDAQ:ABNB)

Number of Hedge Fund Holders: 54

Renaissance Technologies’ Stake Value: $753,187,000

Airbnb, Inc. (NASDAQ:ABNB) runs a platform that allows hosts from around the world to offer accommodations and experiences to guests. In Q1 2023, Jim Simons’ Renaissance Technologies held 6.05 million shares of Airbnb, Inc. (NASDAQ:ABNB), worth over $753 million and representing 0.99% of the total 13F securities. It is one of the top stock picks of Jim Simons’ fund. 

On May 9, Airbnb, Inc. (NASDAQ:ABNB) reported a Q1 GAAP EPS of $0.18 and a revenue of $1.82 billion, topping Wall Street estimates by $0.08 and $30 million, respectively. The company’s board also authorized a new share repurchase plan, allowing the repurchase of up to $2.5 billion worth of class A common stock.

KeyBanc analyst Justin Patterson maintained an Overweight rating on Airbnb, Inc. (NASDAQ:ABNB) but decreased the firm’s price target on the shares from $144 to $135. The analyst acknowledged that Airbnb, Inc. (NASDAQ:ABNB)’s Q1 results were satisfactory, but the Q2 guidance has fueled concerns among some investors. 

According to Insider Monkey’s fourth quarter database, 54 hedge funds were long Airbnb, Inc. (NASDAQ:ABNB), compared to 58 funds in the earlier quarter. Two Sigma Advisors is a prominent stakeholder of the company. 

Artisan Developing World Fund made the following comment about Airbnb, Inc. (NASDAQ:ABNB) in its Q1 2023 investor letter:

“Top contributors to performance for the quarter included online travel marketplace Airbnb, Inc. (NASDAQ:ABNB). Airbnb outperformed on the resilience of the travel category including for long-term stays, and on operating leverage as cost optimization is met with revenue increases. Notably, our top four holdings entering the quarter (Sea, Meli, Nvidia, Airbnb) which represented 24.37% of capital on December 31, 2022, increased an average of 64.42% during the quarter.”

4. Tesla, Inc. (NASDAQ:TSLA)

Number of Hedge Fund Holders: 91

Renaissance Technologies’ Stake Value: $835,026,000

Tesla, Inc. (NASDAQ:TSLA) engages in the design, development, manufacturing, leasing, and sale of electric vehicles, as well as energy generation and storage systems. In Q1 2023, Jim Simons’ hedge fund held 4 million Tesla, Inc. (NASDAQ:TSLA) shares worth $835 million, representing 1.1% of the total 13F securities. 

On May 2, Piper Sandler reiterated an Overweight rating on Tesla, Inc. (NASDAQ:TSLA) but lowered the firm’s price target on the shares to $280 from $300. The analyst has adjusted the estimates for 2023-2025 to account for price reductions, which are expected to have an impact on margins.

According to Insider Monkey’s fourth quarter database, 91 hedge funds were long Tesla, Inc. (NASDAQ:TSLA), compared to 88 funds in the earlier quarter. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 7.5 million shares worth $926.2 million. 

Baron Opportunity Fund made the following comment about Tesla, Inc. (NASDAQ:TSLA) in its Q1 2023 investor letter:

“Tesla, Inc. (NASDAQ:TSLA) designs, manufactures, and sells EVs, related software and components, and solar and energy storage products. Following a sharp decline at the end of 2022, Tesla’s stock rebounded in the first quarter of 2023 on investor expectations that Tesla will continue to grow vehicle deliveries and maintain solid gross and operating margins despite a potential recession, competition in China, and vehicle price reductions. We wrote a long piece on Tesla last quarter and refer readers back to it, because for long-term investors not much has changed over the last three months. Tesla did hold its first Investor Day in March, and several Baron analysts and portfolio managers attended. We toured the Austin Gigafactory, drove in a Cybertruck, boarded a Semi truck, and spoke with a wide swath of Tesla senior managers. During the formal presentation, Tesla highlighted, among other things: (1) its broad and deep bench of executive talent supporting CEO Elon Musk; (2) its “Master Plan 3–Sustainable Energy for All of Earth,” which featured EVs, renewable power from solar and wind, and stationary electric storage; (3) its vehicle assembly innovations, including massive casted parts (building Model Y bodies with single front and rear castings, replacing a substantial number of parts and fastening steps), a stainless steel exoskeleton (for Cybertruck), and its next-generation highly efficient “unboxed process” for its next-gen $25,000 vehicle; (4) a future permanent[1]magnet electric motor that will not require any rare earths; and (5) the massive untapped market opportunity for commercial stationary electric storage, branded Megapack, as the world steadily shifts to renewable energy. As long-term shareholders, we have witnessed Tesla exploit its innovative Model 3/Y now-global mass-market platform to increase vehicle deliveries from barely a standing start to over 1.3 million units, while achieving industry-leading margins and reinforcing its iron-clad balance sheet to almost $23 billion in cash (and effectively no recourse debt). We expect Tesla’s next-generation EV and Megapack products to have a similar impact on company results.”

3. Gilead Sciences, Inc. (NASDAQ:GILD)

Number of Hedge Fund Holders: 64

Renaissance Technologies’ Stake Value: $878,172,000

Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company that focuses on the discovery, development, and commercialization of medicines to address unmet medical needs. In Q1 2023, Jim Simons’ fund owned 10.5 million shares of Gilead Sciences, Inc. (NASDAQ:GILD) worth more than $878 million. Gilead Sciences, Inc. (NASDAQ:GILD) is one of the top stock picks of Jim Simons. 

On April 28, Piper Sandler analyst Joseph Catanzaro assumed coverage of Gilead Sciences, Inc. (NASDAQ:GILD) with an Overweight rating and a $105 price target. In a research note to investors, the analyst emphasized that Gilead’s Q1 performance showcased the strength of its core virology commercial business, as well as the growing appeal of its oncology portfolio.

According to Insider Monkey’s fourth quarter database, 64 hedge funds were bullish on Gilead Sciences, Inc. (NASDAQ:GILD), compared to 56 funds in the earlier quarter. Marshall Wace LLP is a prominent stakeholder of the company, with 4.4 million shares worth $380.3 million.

Ariel Global Strategy made the following comment about Gilead Sciences, Inc. (NASDAQ:GILD) in its Q4 2022 investor letter:

“Biopharmaceutical company Gilead Sciences, Inc. (NASDAQ:GILD. advanced in the quarter on positive data released in a study evaluating Trodelvy versus comparative chemotherapy in patients with metastatic breast cancer. The detailed findings increased investor confidence the drug would receive incremental approvals for a broader range of breast cancer treatments. Shares also received a boost on news that the TAF patent portfolio for HIV drugs will be extended from the middle of this decade through the early 2030s, creating greater visibility into the company’s long-term opportunity in the virology market.”

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

Number of Hedge Fund Holders: 240

Renaissance Technologies’ Stake Value: $929,707,000

Amazon.com, Inc. (NASDAQ:AMZN) is one of the top stock picks of Jim Simons. In Q1 2023, Jim Simons’ hedge fund held 9 million shares of Amazon.com, Inc. (NASDAQ:AMZN) worth $929.70 million, representing 1.23% of the total 13F portfolio. 

On May 18, Amazon Web Services announced its intention to allocate approximately $12.7 billion for expanding its cloud infrastructure in India, driven by the increasing customer demand for cloud services in the country. This investment is expected to make a significant economic impact, contributing around $23.3 billion to India’s total GDP by 2030 and supporting approximately 131,000 jobs annually. Prior to this announcement, Amazon.com, Inc. (NASDAQ:AMZN) had already invested approximately $3.7 billion in India between 2016 and 2022. With this new commitment, the total investment by AWS in India is projected to reach $16.4 billion by 2030.

Loop Capital analyst Rob Sanderson on May 8 maintained a Buy rating and a price target of $140 on Amazon.com, Inc. (NASDAQ:AMZN) following its Q1 results. The stock’s performance is being hindered by apprehensions about the slowdown at Amazon Web Services and uncertainties regarding the long-term impact of artificial intelligence adoption on the selection of cloud vendors. However, the analyst believes that the slowdown at AWS is temporary and anticipates a recovery. Loop Capital is also optimistic due to positive feedback received from industry experts and expects a rebound as cost reduction initiatives are implemented.

According to Insider Monkey’s fourth quarter database, 240 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), compared to 269 funds in the prior quarter. Harris Associates is a prominent stakeholder of the company. 

Arch Capital made the following comment about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2023 investor letter:

“Replacing our Wix investment is Amazon.com, Inc. (NASDAQ:AMZN), a company we are sure you have heard of before. We believe the company’s long-term growth runway, profit potential, and competitive advantages were being vastly underrated in early January when its market cap was well below $1 trillion. We think early January was one of those rare times you could buy a special business like Amazon at a discounted valuation. Our hope is that – if we are right about its competitive advantages in retail and cloud computing – our Amazon stake will end up being a permanent holding in the limited partnership.”

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

Number of Hedge Fund Holders: 41

Renaissance Technologies’ Stake Value: $1,719,076,000

Novo Nordisk A/S (NYSE:NVO) is a global healthcare company involved in the worldwide research, development, manufacturing, and marketing of pharmaceutical products. On May 4, Novo Nordisk A/S (NYSE:NVO) reported a Q1 GAAP EPS of DKK 8.78 and a revenue of DKK 53.37 billion, up 27.0% on a year-over-year basis. In Q1 2023, Jim Simons’ fund owned 10.80 million shares of the company worth $1.7 billion. Novo Nordisk A/S (NYSE:NVO) is the largest holding in Simons’ 13F portfolio. 

On April 20, Barclays raised the firm’s price target on Novo Nordisk A/S (NYSE:NVO) to DKK 1,350 from DKK 1,200 and maintained an Overweight rating on the shares.

According to Insider Monkey’s fourth quarter database, 41 hedge funds were long Novo Nordisk A/S (NYSE:NVO), compared to 40 funds in the prior quarter. Tom Gayner’s Markel Gayner Asset Management is the biggest stakeholder of the company, with a position worth $140.5 million.

Artisan Global Opportunities Fund made the following comment about Novo Nordisk A/S (NYSE:NVO) in its Q4 2022 investor letter:

“Novo Nordisk A/S (NYSE:NVO) is the global leader in insulin production and diabetes treatment. We believe the company’s drugs for treating diabetes— decreasing blood sugar and weight—have a solid profit cycle runway ahead. However, our core investment thesis is centered around the company’s opportunity in the obesity market with its Wegovy® offering, which is an injectable prescription medication serving as a potentially safer alternative to bariatric surgery. Wegovy® is commercially approved and has the potential to capture a meaningful share of what we expect will be a massive market opportunity considering both the total addressable market combined and the recurring revenue of the medication that must be taken chronically to maintain effectiveness. For the quarter, the company reported 16% growth in sales, but sales within its obesity segment grew by 75%.”

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