Jim Simons’ RenTech was also tied for third, in part because of Eli Lilly & Co. (NYSE:LLY). Simons founded RenTech in 1982, and the firm now manages some $20 billion. The firm primarily uses complex mathematical models to analyze and execute trades.
Eli Lilly was as one of RenTech’s top five holdings throughout 2012, and was third at the end of 2012. The stock was up almost 20% during 2012, and also pays a 3.5% dividend yield. The drugmaker is looking to counter the loss of its patent for Zyprexa, in part via growth in emerging markets and animal health. Lilly boasts more than fifty compounds in its research and development pipeline. Eli Lilly’s returns also compare favorably to those of other major drugmakers:
Return on Sales
Eli Lilly 18%
Pfizer 16%
Merck 13%
Return on Investment
Eli Lilly 20%
Pfizer 7%
Merck 8%
And at No. 5…
Coming in fifth was billionaire George Soros of Soros Fund Management, which pulled in $1.1 billion in 2012 (check out Soros’ newest picks). Soros is best known for his Quantum Fund, which is said to have achieved a cumulative 32% annual return over its 26-year history.
Motorola Solutions Inc (NYSE:MSI), the communication equipment company, was one of Soros’ continued “big” bets during 2012, remaining in the top eleven for the entire year. Soros had Motorola Solutions as his seventh largest holding at the end of 2012. The company was up some 20% in 2012 and should move higher in 2013.
Motorola Solutions appears to be a leader in the lucrative U.S. public safety market. The company’s business model should allow it to maintain its solid growth, given the nature of the public safety network in the U.S. The communications equipment company is one of the largest developers of public safety products, commanding nearly half of the total market share in the U.S. This includes being the largest manufacturer of bar code readers and small rugged mobile computers.
All of the top five major hedge fund earners of 2012 were already billionaires, but there’s no mistaking how they achieved that status: consistent strong performance year after year. As a result, it is always worthwhile to check out what some of these hedge fund managers had their portfolios invested in, with the hopes of gaining some insight into potential stock picks for outperforming the market.
Icahn has been betting on his energy and natural foods companies for the last couple of years. Cohen has made a bet on the rebounding auto industry Sirius, with Simons still having major drug maker Eli Lilly as one of his top holdings. I think Soros still has one of the most solid bets of the billionaires making it big in 2012. At a 1.25 PEG, and with a 1.6% dividend yield, Motorola Solutions seems to have earned its spot as one of Soros’s top picks.
The article Which Billionaires Made It Big In 2012? originally appeared on Fool.com and is written by Marshall Hargrave.
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