In this article, we discuss 5 stocks that Jim Simons’ quant hedge fund is selling. If you want our detailed analysis of these stocks, go directly to Jim Simons’ Quant Hedge Fund Is Selling These 10 Stocks.
5. UnitedHealth Group Incorporated (NYSE:UNH)
Number of Hedge Fund Holders: 95
UnitedHealth Group Incorporated (NYSE:UNH) is a multinational insurance and managed healthcare company based in Minnetonka, Minnesota. Renaissance Technologies started building a stake in UnitedHealth Group Incorporated (NYSE:UNH) back in Q4 2010, and the fund sold out of its position in the company multiple times over the years. In Q2 2021, Jim Simons’ fund purchased 394,435 shares of UnitedHealth Group Incorporated (NYSE:UNH), worth roughly $158 million, which it discarded in the third quarter of 2021.
On December 2, UnitedHealth Group Incorporated (NYSE:UNH) declared a $1.45 per share quarterly dividend, in line with previous. The dividend was paid on December 14, to shareholders of record on December 6.
UnitedHealth Group Incorporated (NYSE:UNH) reported its Q4 results on January 19, posting earnings per share of $4.48, exceeding estimates by $0.17. The $73.74 billion revenue was up 12.64% year-on-year, outperforming estimates by $774.36 million.
SVB Leerink analyst Whit Mayo on January 26 raised the price target on UnitedHealth to $550 from $480 and kept an Outperform rating on the shares. The analyst noted that results from Q4 were largely as expected. Against potential fading COVID and political risks, Mayo can see the UnitedHealth Group Incorporated (NYSE:UNH) stock pushing a premium against the S&P 500.
A total of 95 hedge funds were bullish on UnitedHealth Group Incorporated (NYSE:UNH) in the third quarter of 2021, down from 105 funds in the quarter earlier. Rajiv Jain’s GQG Partners held 3.6 million UnitedHealth Group Incorporated (NYSE:UNH) shares in Q3 2021, worth $1.4 billion. GQG Partners was the biggest stakeholder of the company for the period.
Here is what Third Point Management has to say about UnitedHealth Group Incorporated (NYSE:UNH) in its Q3 2021 investor letter:
“UnitedHealth is one of the largest healthcare companies in the world and a market leader in both its insurance and healthcare services (Optum) businesses. We initiated our position during the 2020 Presidential election at a time of heightened political and regulatory uncertainty.
We believe under its new CEO, Andrew Witty, UnitedHealth can not only preserve its market dominance and sustain industry-leading growth rates across most of its key segments but also enter new healthcare services markets. Witty is known as a mission-driven CEO who clearly articulates his view that providing high-quality, affordable health care services is a social good. He receives consistently high marks from former colleagues, and we believe that his leadership approach will ballast and even strengthen UNH’s already impressive management and employee ranks. The insurance and services businesses are synergistic and complementary, which entrenches United’s critical role in care financing, access, and management. This dynamic gives us confidence in the durability of United’s market leadership…” (Click here to see the full text)
4. The Walt Disney Company (NYSE:DIS)
Number of Hedge Fund Holders: 101
The Walt Disney Company (NYSE:DIS) is an American multinational entertainment and media conglomerate that owns and operates amusement parks, film studios, gaming studios, web portals, broadcasting channels, and radio and streaming platforms.
Renaissance Technologies first invested in The Walt Disney Company (NYSE:DIS) back in Q2 2011, and by the second quarter of 2021, the hedge fund held 1.76 million shares of The Walt Disney Company (NYSE:DIS), worth $310.76 million. Jim Simons’ fund sold out of its position in The Walt Disney Company (NYSE:DIS) in Q3 2021.
The Walt Disney Company (NYSE:DIS) posted its Q4 results on February 9, reporting earnings per share of $1.06, exceeding estimates by $0.43. The quarterly revenue gained 34.28% from the prior-year quarter, totaling $21.82 billion, outperforming estimates by $858.24 million.
The Walt Disney Company (NYSE:DIS) reported on February 8 that it expects Disney+ streaming subscribers to grow by approximately 7 million on a quarter-over-quarter basis, as compared to 2.1 million new subscribers brought on during the prior quarter. The Walt Disney Company (NYSE:DIS) has targeted bringing on between 230 million to 260 million subscribers in total to the service by the end of FY24.
Evercore ISI analyst Vijay Jayant on February 11 lowered the price target on The Walt Disney Company (NYSE:DIS) to $190 from $200, owing to a deflation of the streaming valuation multiple in his sum-of-the-parts framework, but kept an Outperform rating on the shares after the company reported fiscal Q1 results that he said “showed strength across business segments”.
Coatue Management held the biggest stake in The Walt Disney Company (NYSE:DIS) as of Q3 2021, with 5.85 million shares worth approximately $990 million. Overall, 101 hedge funds were bullish on The Walt Disney Company (NYSE:DIS), down from 112 funds in the quarter earlier.
Here is what RiverPark Funds has to say about The Walt Disney Company (NYSE:DIS) in its Q2 2021 investor letter:
“DIS shares declined for the quarter, taking a pause after a big fourth quarter and first quarter stock price advance, as Disney+ subscriber numbers were disappointing to investors. Disney+, the company’s DTC streaming business, had blown past previous subscriber projections, having gone from zero to 104 million in 17 months, but investors were now expecting 109 million subscribers. Management still expects significant continued growth to 230-260 million subscribers in 2024.
DIS is blessed with a deep library of unique content that includes both live sports (providing large, non-time shifted audiences) and incomparable brands including Disney, Marvel, Pixar and Lucasfilm, as well as the ABC network. The company also has a wealth of upcoming new content, expecting over 100 original titles per year, including two new Star Wars spin-off series, 10 Star Wars films, 10 Marvel films, 15 Disney and Pixar films and 15 Disney and Pixar series.
Now that the disruption in its theme park, cruise and theatrical businesses appears to be coming to an end, we believe that Disney is among the best-positioned media companies in the new landscape to combine multi-channel and DTC distribution. We also note that DIS has an extremely strong balance sheet and a growing pool of free cash flow to be used both to return to shareholders and to invest in future opportunities.”
3. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 117
Sea Limited (NYSE:SE) is a Singapore-based company engaged in digital entertainment, e-commerce, and financial services. Renaissance Technologies purchased a $74.7 million stake in Sea Limited (NYSE:SE) in Q1 2019. The fund reduced its position in the company over the years, and in Q3 2021, sold its $9.4 million position in Sea Limited (NYSE:SE) entirely.
On February 7, Barclays analyst Jiong Shao lowered the price target on Sea Limited (NYSE:SE) to $218 from $427 and kept an Overweight rating on the shares. The post COVID-19 economic reopening has had a negative impact on Sea Limited (NYSE:SE)’s gaming and e-commerce business, as consumers spend less time online, the analyst told investors in a research note, noting that Sea Limited (NYSE:SE)’s 2022 outlook may need to be reset.
According to Insider Monkey’s Q3 database, 117 funds were bullish on Sea Limited (NYSE:SE), up from 104 funds in the preceding quarter. Tiger Global Management held the biggest stake in Sea Limited (NYSE:SE) during the third quarter of 2021, with 10.4 million shares worth $3.3 billion.
Here is what ClearBridge Large Cap Growth Strategy has to say about Sea Limited (NYSE:SE) in its Q3 2021 investor letter:
“Over the last year, we have sought to improve the up capture of the portfolio by expanding exposure to the select bucket of companies growing revenues and earnings at meaningfully above-average rates and targeting large total addressable markets. Newer names in the select bucket like Sea Limited have been strong contributors to relative performance over this period. We believe that owning a broader group of IT and Internet companies with different drivers to the businesses helps manage some of the risk in this relatively more expensive subsector.”
2. salesforce.com, inc. (NYSE:CRM)
Number of Hedge Fund Holders: 119
salesforce.com, inc. (NYSE:CRM) is an American software company offering cloud-based solutions for customer service, marketing automation, data analytics, and application development.
Jim Simons’ fund first invested in salesforce.com, inc. (NYSE:CRM) in Q4 2010, and over the years, the shares were dropped entirely and repurchased. By Q2 2021, Renaissance Technologies held more than 1 million salesforce.com, inc. (NYSE:CRM) shares, worth $252.8 million, which were sold off in the third quarter of 2021.
On February 7, Yun Kim from Loop Capital lowered the price target on salesforce.com, inc. (NYSE:CRM) to $225 from $275 and kept a Hold rating on the shares as part of a broader research on the software industry. Although his reduced price target reflects expected lower cash flow estimates for in 2024 and beyond, the analyst stated that salesforce.com, inc. (NYSE:CRM) displays steady business trends.
Among the hedge funds tracked by Insider Monkey, 119 funds held long positions in salesforce.com, inc. (NYSE:CRM), up from 108 funds in the prior quarter. Fisher Asset Management held the largest stake in salesforce.com, inc. (NYSE:CRM) in Q3 2021, with roughly 14 million shares worth $3.7 billion.
Here is what ClearBridge Large Cap Growth Strategy has to say about salesforce.com, inc. (NYSE:CRM) in its Q3 2021 investor letter:
“On an individual stock basis, leading contributors to absolute returns in the third quarter included positions in Salesforce.com. Meanwhile, with a new CFO focused on delivering consistent growth and expanding margins, Salesforce could soon surpass SAP as the world’s largest enterprise applications provider with an all-subscription-based model. The recent acquisition of Slack should better connect the company’s products and services with its users as the messaging platform becomes more dynamic and interactive.”
1. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 242
Renaissance Technologies held 147,655 shares of Amazon.com, Inc. (NASDAQ:AMZN), the e-commerce and tech giant, in the second quarter of 2021. The hedge fund sold out of the $492 million position completely in Q3 2021.
Publishing its Q4 results on February 3, Amazon.com, Inc. (NASDAQ:AMZN) reported earnings per share of $27.75, beating estimates by $24.09. Revenue for the period equalled $137.41 billion, missing estimates by $173.16 million.
Citi analyst Jason Bazinet on February 9 raised the price target on Amazon.com, Inc. (NASDAQ:AMZN) to $4,115 from $4,100 and kept a Buy rating on the shares after the company’s Q4 results. The analyst continues to see “ample room for growth” in Amazon.com, Inc. (NASDAQ:AMZN)’s B2B services.
Among the hedge funds monitored by Insider Monkey in Q3 2021, 242 funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN), with stakes totalling $42.5 billion. Eagle Capital Management held a significant stake in the company during the third quarter, with 701,852 shares worth $2.30 billion.
Here is what Weitz Investment Management, Inc. has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q4 2021 investor letter:
“Several “platform” companies thrived during COVID and have been very strong stocks. In 2021, their businesses continued to thrive, though their stock prices cooled off. Amazon continues to steamroll the competition and grow rapidly, but its stock ended the year about where it began.”
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