This article looks at the top 10 stock picks from the Renaissance Technologies portfolio.
The American quant hedge fund Renaissance Technologies is known for using statistical and mathematical tools to drive its investment programs. It was founded in 1982 by Jim Simons, a mathematician who worked as a code breaker for the US National Security Agency during the Cold War. As of December 31, Renaissance Technologies had a portfolio valued at over $67.5 billion.
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Simons was among the pioneers of quantitative investing. He had an estimated net worth of $31.4 billion at the time of his death in May last year, making him the 51st richest person in the world at the time. His use of mathematical models and algorithms to drive long-term investment returns earned him a legacy that rivaled the likes of Warren Buffett and George Soros.
The Renaissance founder stepped down from active hedge fund management in 2010 and resigned as its executive chairman in 2021. The firm is now headed by Peter Brown, who has a strong educational background in mathematics and computer sciences. His father, Henry B.R. Brown invented the Reserve Primary Fund in 1970, the first money market fund to be established.
Brown is committed to using mathematical models to discover and unlock the value of stocks in the market. 2024 was a strong year for Renaissance Technologies. According to a report on Business Insider, the two funds that are open to investors—Renaissance Institutional Equities Fund (RIEF) and Renaissance Institutional Diversified Alpha (RIDA)—delivered double-digit returns of 22.7% and 15.6%, respectively.
Its signature Medallion fund performed even better, with a 30% gain, outperforming the broader market by nearly seven percentage points. Medallion was closed to outside investors in 1993 and has since then only been available to past and current employees, and their families. The fund generated average annual returns of 66% for three decades between 1988 and 2018, resulting in over $100 billion in profits during the period. This earned Medallion the reputation of being one of the most successful investment portfolios of all time.
On February 13, Renaissance Technologies filed a portfolio update, reflecting its holdings for the fourth quarter of 2024. The 13F SEC filings revealed significant changes in the portfolio, including a substantial reduction of stake in a leading technology conglomerate and increased investments in Asia-based artificial intelligence companies during the quarter.
With that said, let’s now head over and see the top 10 stock picks from the Renaissance Technologies portfolio.
Jim Simons of Renaissance Technologies
Our Methodology:
We scanned Renaissance Technologies’ 13F portfolio, as of December 31, 2024. From there, we picked the top 10 stocks according to their stake value and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Renaissance Technologies Portfolio: Top 10 Stock Picks
10. Gilead Sciences, Inc. (NASDAQ:GILD)
Stake Value as of Q4 2024: $492,308,361
Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company engaged in the development of medicines to prevent and treat various life-threatening diseases, including HIV, viral hepatitis, and cancer. It is among the top stocks from the Renaissance Technologies portfolio, with the hedge fund having investments valued at over $492.3 million in the company.
On February 18, the company announced that the FDA had accepted its new drug application submission for its HIV prevention treatment, Lenacapavir, with a target action date of June 19, 2025, to review the applications. If approved, this would be the first-ever twice-yearly HIV prevention choice. Analysts expect the drug to reach peak annual sales of $3 billion to $4 billion.
During its Q4 2024 earnings call on February 11, Gilead Sciences, Inc. (NASDAQ:GILD) reported an 8% year-over-year growth in its base business product sales for 2024. Full-year revenue stood at $28.8 billion, up 6% from last year, driven by higher sales in HIV, liver disease, and oncology. Non-GAAP diluted EPS was logged at $4.62, down from $6.72 in 2023, due to an increase in income tax expense and higher acquired IPR&D expenses from the CymaBay acquisition.
In February last year, Gilead Sciences, Inc. (NASDAQ:GILD) expanded its liver portfolio with the $4.3 billion acquisition of CymaBay Therapeutics, Inc., a leading pharmaceutical company focused on treatments of patients with liver and other chronic diseases. The addition of Seladelpar to treat primary biliary cholangitis (PBC) complements the company’s existing liver portfolio and aligns with its quest to bring transformational medicines to patients.
Gilead Sciences, Inc. (NASDAQ:GILD) is committed to strong shareholder returns and recently declared a 2.6% increase in its quarterly cash dividend, beginning Q1 2025. Wall Street analysts are bullish on the stock, with a consensus Buy rating. Investor sentiment continues to improve as well. According to Insider Monkey’s database for Q4 2024, 74 hedge funds held a stake in the company, up from 59 at the end of the third quarter.
9. Exelixis, Inc. (NASDAQ:EXEL)
Stake Value as of Q4 2024: $509,352,305
Exelixis, Inc. (NASDAQ:EXEL) is engaged in the development of medicines and regimens for difficult-to-treat cancers. The oncology company is rapidly evolving its product portfolio to target a growing range of tumor types. Some of its key products include CABOMETYX, a drug for advanced renal cell carcinoma (RCC); and COMETRIQ capsules to treat progressive and metastatic medullary thyroid cancer.
The company recently announced the final five-year results from a trial evaluating the combination of CABOMETYX and Opdivo, compared to sunitinib, for previously untreated advanced-stage RCC. The findings demonstrated improved progression-free survival and overall survival, with long-term efficacy seen across subgroups.
On February 11, Exelixis, Inc. (NASDAQ:EXEL) reported strong results for the fourth quarter and full year 2024. Revenue for the quarter was $567 million, while it stood at $2.17 billion for the year, up 18.2% and 18.5%, respectively, from the comparable periods. The growth was driven by increases in sales volume and average net selling price. Non-GAAP net income for 2024 was posted at $593.6 million, more than doubling from last year.
Exelixis, Inc. (NASDAQ:EXEL) also provided an update on the pipeline highlights from the quarter. It is seeing encouraging results from a trial evaluating Zanzalintinib in metastatic colorectal cancer. The company has also initiated a clinical trial to evaluate XL495 in patients with advanced solid tumors.
Positive trial results coupled with robust financial performance have led to a bullish sentiment around the stock. According to Insider Monkey’s database for Q4 2024, 46 hedge funds held a stake in Exelixis, Inc. (NASDAQ:EXEL), improving from 33 at the end of the third quarter. Riverwater Partners Sustainable Value Strategy stated the following regarding the company in its Q4 2024 investor letter:
Exelixis, Inc. (NASDAQ:EXEL) is a commercial-stage oncology company focused on developing therapies for cancer; its blockbuster commercial asset, Cabozantinib, derived ~$2B in global revenues in 2023 and 2024. The company also has a compelling early-stage pipeline. EXEL is not in the business of me-too programs and trying to get FDA results that are just good enough; FDA approval is the starting line, not the finish line. EXEL manages its portfolio of current and prospective drug candidates to drive innovation to improve the standard of care for patients, having found that generating differentiated data that moves the standard of care is what drives value for patients and EXEL over the long-term. The stock trades at a below-the-market multiple and a 25% discount to its five-year average forward valuation.
Exelixis, Inc. (NASDAQ:EXEL) is also one of the top stock picks from the Renaissance Technologies portfolio, with holdings of over $509 million, as of December 31, 2024.
8. Airbnb, Inc. (NASDAQ:ABNB)
Stake Value as of Q4 2024: $548,683,144
Airbnb, Inc. (NASDAQ:ABNB) is an American company that operates an online marketplace to connect people looking to rent out their properties with people who are looking for accommodation for their short-term homestays across various regions of the world. It is headquartered in San Francisco, California.
Airbnb, Inc. (NASDAQ:ABNB) reported fourth-quarter results on February 13 that beat analysts’ estimates. Revenue increased 12% year-over-year to $2.5 billion, driven by robust growth in nights stayed and a modest uptick in average daily rates. Net income for the quarter was posted at $461 million, improving from a net loss of $349 million in Q4 2023.
Airbnb, Inc. (NASDAQ:ABNB) said that it had rebuilt its platform over the past several years and rolled out new product updates to enhance user experience, which is helping drive higher conversion rates. The management also hinted at the new offerings planned for launch in May this year.
The company generated $4.5 billion in free cash flow in fiscal 2024, representing a free cash flow margin of 40%. It ended the year with $10.6 billion of corporate cash and investments. The strong balance sheet position allowed Airbnb, Inc. (NASDAQ:ABNB) to repurchase $3.4 billion of Class A common stock for the full year. The vacation rental company has been encouraged by early demand in 2025 and expects to deliver revenue between $2.23 billion and $2.27 billion in Q1, representing 4% to 6% year-over-year growth.
As of the close of business on February 19, ABNB’s share price had surged by over 12% since the earnings report. Investor sentiment remains stable. According to Insider Monkey’s database for Q4 2024, 54 hedge funds held a stake in the company, unchanged from the third quarter. As of December 31, 2024, Renaissance Technologies had investments of nearly $549 million in Airbnb, Inc. (NASDAQ:ABNB).
7. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)
Stake Value as of Q4 2024: $562,656,064
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is an American biotechnology company that uses scientific innovation to develop transformative medicines for patients with serious diseases. It is one of the top stock picks from the Renaissance Technologies portfolio.
In January, the company received FDA approval for JOURNAVX, a medication to treat adults with moderate-to-severe acute pain. This can be a major catalyst of growth for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) as it can open new opportunities to build solid business beyond cystic fibrosis (CF) treatments. The non-opioid oral pain signal inhibitor can be a valuable addition to the healthcare industry, offering patients an alternative to highly addictive opioids, as over 80,000 people die each year due to overdoses involving opioids.
Analysts see immense potential in JOURNAVX to become a blockbuster drug with peak annual revenues of approximately $5 billion over the next five to six years. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) also has several other treatments in its pipeline, including those aimed at treating diabetes, complex kidney diseases, and other conditions, which positions it well for profitable growth over the long run.
During its Q4 2024 earnings call on February 10, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported a 12% increase in its full-year product revenue to $11.02 billion. The company is anticipating continued growth in fiscal 2025 with the approval of JOURNAVX, the launch of its fifth CF medicine, ALYFTREK, and the continuing global acceptance of CASGEVY, a therapy used to treat patients with beta-thalassemia and sickle cell disease.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s share price has surged by 17% year-to-date, with Wall Street analysts projecting a further 7% uptick, on average, in its trading value. According to Insider Monkey’s database for Q4 2024, 68 hedge funds held stakes in the company, up from 55 at the end of the third quarter.
6. Sprouts Farmers Market, Inc. (NASDAQ:SFM)
Stake Value as of Q4 2024: $567,322,313
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a retailer of fresh, natural, and organic food products in the United States. It operates over 400 stores across 23 states in the country. Renaissance Technologies was the largest investor in the company, with holdings valued at over $567 million, as of December 31, 2024.
Sprouts Farmers Market, Inc. (NASDAQ:SFM) is a standout player in the grocery sector due to its efficient distribution system and robust gross profit margins. About 80% of its stores are located in proximity to its distribution centers, which ensure freshness and reduce costs through logistical efficiency. The company has also adopted a new store format to minimize construction costs and maximize selling space.
On the other hand, Sprouts Farmers Market, Inc. (NASDAQ:SFM) has also been embracing digital transformation. The company has made significant investments in e-commerce, and online ordering and delivery services to cater to the growing demand for convenience. Its strategic partnerships with notable food and grocery delivery companies have helped broaden SFM’s digital reach and are contributing to the surge in e-commerce sales.
Sprouts Farmers Market, Inc. (NASDAQ:SFM)’s share price has risen by over 38% year-to-date. On February 19, UBS raised its price target for the company to $195 from $132, in anticipation of strong results for the fourth quarter of fiscal 2024, with Q4 same-store sales expected to have risen at the fastest rate since 2014.
Wall Street analysts are bullish on the stock with a consensus Buy rating. Investor sentiment has seen an improvement as well. According to Insider Monkey’s database for Q4 2024, 47 hedge funds held a stake in Sprouts Farmers Market, Inc. (NASDAQ:SFM), up from 37 at the end of the third quarter.
5. VeriSign, Inc. (NASDAQ:VRSN)
Stake Value as of Q4 2024: $603,344,486
VeriSign, Inc. (NASDAQ:VRSN) is a global provider of network infrastructure and domain name registry services. The company is the sole registry for the .com and .net domains. It is one of the top stock picks from the Renaissance Technologies portfolio, with the hedge fund having investments worth over $603 million in VRSN as of December 31, 2024.
During its Q4 2024 earnings call on February 6, the Reston, Virginia-based company reported a revenue of $395 million, up 3.9% from last year, driven by steady demand for domain registrations. An increasing number of businesses globally are amplifying their digital presence, which is benefiting internet infrastructure and domain registry service providers like VeriSign, Inc. (NASDAQ:VRSN).
In November, VeriSign, Inc. (NASDAQ:VRSN) renewed the .com registry agreement with the Internet Corporation for Assigned Names and Numbers (ICANN). The company will remain the sole operator of the .com registry till November 30, 2030. The National Telecommunications and Information Administration (NTIA) also renewed its cooperative agreement with VRSN for another six years during the quarter.
For the full year, VeriSign, Inc. (NASDAQ:VRSN) posted a revenue of $1.56 billion, up 4.3% year-over-year. Operating income increased to $1.06 billion from $1 billion in 2023. Net income for 2024 stood at $786 million with a diluted EPS of $8.00, down slightly from $818 million and $7.90 per share last year.
Wall Street analysts are bullish on VeriSign, Inc. (NASDAQ:VRSN), with a consensus Strong Buy rating and an average share price upside potential of 8%. Investor sentiment continues to improve as well. According to Insider Monkey’s database, 41 hedge funds held a stake in the company at the end of the fourth quarter of 2024, up from 39 in Q3.
4. Apple Inc. (NASDAQ:AAPL)
Stake Value as of Q4 2024: $617,945,975
Apple Inc. (NASDAQ:AAPL) is a leading American technology company known for its consumer electronics, software, and other related products. Its premium line of products, which includes the iPhone, iPad, Mac computers, and a range of other accessories, has earned Apple widespread acclaim and customer loyalty.
On February 19, the company unveiled the iPhone 16e, which will offer artificial intelligence features at a dramatically lower price compared to its standard flagships. Like the other higher-priced iPhones, this new version will be equipped with the latest-generation A18 chip, as Apple Inc. (NASDAQ:AAPL) hopes to bolster demand for its most profitable product lineup through a more affordable option.
Apple Inc. (NASDAQ:AAPL) has also announced plans to expand in Saudi Arabia, beginning with the launch of an online store in the summer of this year, before opening several flagship retail locations across the country, starting in 2026. As part of these efforts, the company is also in the initial stages of planning an iconic retail store in Diriyah, a UNESCO World Heritage site.
While iPhone sales dipped by nearly 1% in the recent quarter (Q1 2025) due to weakness in Greater China, Apple Inc. (NASDAQ:AAPL)’s gross margin reached a record 46.9%. The strong results were driven by a flourishing services business. Total revenue stood at $124.3 billion, up 4% year-over-year, while quarterly diluted EPS grew 10% to $2.40 per share.
After impressive first-quarter results, most analysts maintained their Buy rating for the stock. Investors are also bullish on Apple Inc. (NASDAQ:AAPL). According to Insider Monkey’s database for Q4 2024, 166 hedge funds held a stake in the company, up from 158 at the end of the third quarter.
3. Novo Nordisk A/S (NYSE:NVO)
Stake Value as of Q4 2024: $715,083,916
Novo Nordisk A/S (NYSE:NVO) is a global healthcare company, headquartered in Bagsværd near Copenhagen, Denmark. It specializes in the treatment of obesity, diabetes, and other rare diseases. The company markets its products in over 180 countries. Its medicines, most notably Ozempic, Rybelsus, and Wegovy have helped improve the lives of diabetes and obesity patients worldwide.
On February 5, the company announced financial results for fiscal 2024. Operating profit increased 25% year-over-year to DKK 128.3 billion. Sales from North American operations grew 30%, while international operations sales were up 17% from last year. Sales within Diabetes and Obesity care increased by 26% during the year.
However, the company is going through a challenging period. Novo Nordisk A/S (NYSE:NVO)’s share price has dropped by 38% over the past six months, amid mixed trial results and regulatory pressures. The Centers for Medicare & Medicaid Services (CMS) recently announced including Ozempic and Wegovy in its list of drugs for price negotiations, which sent shockwaves in the industry and led to a further dip in the company’s share price.
On the positive side, Novo Nordisk A/S (NYSE:NVO) made headlines last month after it revealed encouraging results from a trial for Semaglutide 7.2 mg, demonstrating superior weight loss compared to placebo. The results reflect the company’s commitment to introducing innovative treatments, especially for chronic disease management.
Wall Street analysts remain bullish on the stock, with a consensus Strong Buy rating and an average share price upside potential of 69%. Investor sentiment also remains strong. According to Insider Monkey, 64 hedge funds held a stake in the company at the end of the fourth quarter of 2024, an improvement from 61 at the end of the third quarter.
Novo Nordisk A/S (NYSE:NVO) is one of the top stock picks from the Renaissance Technologies portfolio, with the hedge fund having investments of over $715 million in the company.
2. United Therapeutics Corporation (NASDAQ:UTHR)
Stake Value as of Q4 2024: $737,221,073
United Therapeutics Corporation (NASDAQ:UTHR) is an American biotechnology company developing novel medications for chronic and life-threatening diseases. It is among the top stock picks from the Renaissance Technologies portfolio, with the hedge fund having investments of over $737 million in the company.
On December 17, 2024, United Therapeutics Corporation (NASDAQ:UTHR) announced the world’s first successful UKidney transplant into a living person. The transplant, authorized by the FDA, was the fourth xenotransplant performed on humans using the company’s xeno organs. Before this, there were two successful UHeart transplants in 2022 and 2023, and one UThymoKidney transplant earlier in 2024.
In February this year, the FDA cleared United Therapeutics Corporation (NASDAQ:UTHR)’s Investigational New Drug application for a clinical study of its investigational UKidney, with the first xenotransplant in the trial expected to happen around mid-2025. An estimated 557,000 patients in the United States are on dialysis from kidney diseases. The company believes xenotransplants can be a therapeutic alternative to dialysis.
United Therapeutics Corporation (NASDAQ:UTHR) has also recently announced full enrollment of the TETON 1 study to evaluate the use of Tyvaso inhalation solution to treat idiopathic pulmonary fibrosis, which is a significant step in potentially delivering a transformative treatment option for patients living with the disease.
The company’s innovative research and development, and advancements in ongoing trials have led to a bullish sentiment around the stock. Wall Street analysts have a consensus Buy rating for United Therapeutics Corporation (NASDAQ:UTHR) with an average share price upside potential of 5%.
1. Palantir Technologies Inc. (NASDAQ:PLTR)
Stake Value as of Q4 2024: $1,723,595,850
Palantir Technologies Inc. (NASDAQ:PLTR) is a technology company that specializes in software platforms for data analytics. These platforms are used by government agencies, financial institutions, and several large corporations.
On February 3, the company announced financial results for the fourth quarter of fiscal 2024. Total revenue for the quarter was $828 million, an increase of 36% from last year. U.S. revenue was posted at $558 million, growing 52% year-over-year. About 61%, or $343 million, of the U.S. revenue was contributed by the U.S. government, whereas the remainder was commercial revenue. The U.S. government revenue was up 45% compared to last year.
Palantir Technologies Inc. (NASDAQ:PLTR) continued to close high-value deals during the quarter. It closed 129 deals valued at over $1 million, 58 deals of at least $5 million, and 32 deals that were worth more than $10 million. This included a $400 million agreement with the U.S. Army in support of the Army Data Platform. The four-year contract has an available ceiling of $618.9 million.
Palantir Technologies Inc. (NASDAQ:PLTR)’s share price has risen 40% year-to-date, with a substantial surge post the Q4 2024 earnings call. The company’s strong financial performance over the past year has attracted investor interest. According to Insider Monkey’s database for Q4 2024, 63 hedge funds held a stake in Palantir, up from 43 at the end of the third quarter.
PLTR is the top pick from the Renaissance Technologies portfolio. As of December 31, 2024, the hedge fund had a stake of over $1.7 billion in the company.
Overall, Palantir Technologies Inc. (NASDAQ:PLTR) ranks first among the Renaissance Technologies Portfolio: Top 10 Stock Picks. While we acknowledge the potential of software companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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