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Jim Simons' RenTech fund doubled its Tesla stake last quarter — and supercharged its GameStop bet 118-fold

Added 05-16-22 07:14:02am EST - “The quantitative hedge fund boosted its Tesla bet to $1.7 billion as of March 31, making Elon Musk's clean-energy company its second-biggest holding.” - Markets.businessinsider.com


Posted By TheNewsCommenter: From Markets.businessinsider.com: “Jim Simons' RenTech fund doubled its Tesla stake last quarter — and supercharged its GameStop bet 118-fold”. Below is an excerpt from the article.

Renaissance Technologies more than doubled its Tesla stake, supercharged its GameStop bet, and slashed its AMC Entertainment holdings in the first quarter of this year, Securities and Exchange Commission filings show.

RenTech, one of the largest and best-performing hedge funds in history, was founded by Jim Simons, a former NSA codebreaker and MIT math professor. The quantitative fund relies on algorithms to determine many of its trades, leading to substantial changes to its portfolio each quarter.

Simons' fund raised its Tesla position by 109%, from about 743,000 shares to 1.6 million. The value of the wager surged from $786,000 to $1.7 billion, aided by a 2% increase in Tesla's stock price in the period. Elon Musk's electric-vehicle company is now RenTech's number-two holding, second only to its $2 billion stake in Danish pharma Novo-Nordisk.

RenTech also boosted its GameStop holdings 118-fold last quarter, from 2,600 shares to 307,000, and the video-game retailer's stock price rose 12% in the period. The upshot was the value of the position surged from below $400,000 to $51 million, catapulting it into the fund's 350 largest holdings. It was number 3,210 out of 3,860 positions at the end of December.

In contrast, the quant fund slashed its AMC stake by 61% to 1.8 million shares last quarter, and the cinema-chain's stock price slid 9% in the period. As a result, RenTech's position plunged in value from $127 million to $45 million, tumbling from its 135th-largest holding to 379th on the list.


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