Jim Simons’ Medallion Fund has not realized negative returns since 1990. Medallion Fund is probably the best hedge fund Insider Monkey has come across. Simons is also one of the richest men alive. We believe he would have been the richest man on this planet if he had started investing 20 years ago. His fund had outstanding returns during the financial crisis. In 2007, Simons realized 73% and in 2008 he beat the market again with an 80% return.
David Tepper gained international popularity in 2003 after realizing record breaking return of 148.8%. The founder of Appaloosa Management again made headlines in 2009 when he returned 132.72%. The success of David Tepper can be due to his contrarian style of investing. In 2009, he profited excessively from his concentrated investment in some of America’s major banks. However, he has been quite bearish about banks since early this year. He reduced his stakes in major American banks since early 2011.
Billionaires Jim Simons and David Tepper both love the following stocks:
Apple Inc. (NASDAQ:AAPL) is one of the most popular stocks among hedge funds and rightly so. Since the end of June, Apple has gained 14%. It has a hedge fund rating of 85. Apple is the largest holding in the equity portfolio of Jim Simons’ Renaissance Technologies. Simons has $445.8 million worth of Apple. David Tepper’s Appaloosa Management has $67.1 million invested in the company. Ken Griffin’s Citadel Investment Group has both put and call option positions of Apple. He has around $2 billion invested in the company.
Google Inc. (NASDAQ:GOOG) is also one of the most popular stocks among hedge fund managers. The company has also gained 5% since the end of June. Jim Simons has $280.8 million invested in the company. Google is the 5th largest holding of Renaissance Technologies’ equity portfolio. David Tepper owns $45.5 million worth of Google shares.
CF Industries Holdings (NYSE:CF) is among the top 10 holdings of David Tepper. Tepper has $122.8 million invested in CF Industries. Tepper has the second highest stake in CF Industries preceded by Phill Gross’ Adage Capital Management. Jim Simons is also among the top 10 stakeholders of the company. He has $60.5 million invested in the company at the end of June. Since the end of the second quarter, CF Industries gained 29.6%.
Applied Materials Inc. (NASDAQ:AMAT): David Tepper has the fourth largest stake in Applied Materials. Tepper has $85.2 million invested in Applied Materials. During the second quarter, Jim Simons purchased $56.8 million worth of Applied Materials shares. Since the end of June, AMAT has lost 17%.
Marathon Oil Corp (NYSE:MRO) is an international oil and natural gas exploration and production company. Since the end of June, the company has returned -16.6%. Jim Simons has $56.4 million invested in Marathon Oil while David Tepper has $37 million invested. Eric Mindich has the highest stake in the company with a $286.7 million position.
KLA Tencor Corp. (NASDAQ:KLAC) is an optical instrument and lenses company. Simons’ Renaissance Technologies has $49.6 invested in the company and David Tepper’s Appaloosa Management has $53.8 million invested. Since the end of June, the company has lost 11%. Ray Dalio, Cliff Asness, and Joel Greenblatt all have stake in KLA Tencor.
Merck & Co. Inc. New (NYSE:MRK) is one of the top 20 holdings of Tepper’s Appaloosa Management. He has $74.5 invested in the company. Jim Simons has $45 million invested in this pharmaceutical company. Since the end of June, MRK lost 6.6%.
Lam Research Corp. (NASDAQ:LRCX) lost 15.9% since the end of the second quarter. Renaissance Technologies has $44 million invested in Lam Research while Appaloosa Management has $50.3 million.
Teradyne Inc. (NYSE:TER) is also one of Chuck Royce’s holdings. He has the highest stake in Teradyne. Jim Simons has the 3rd largest stake in the company with his $43 million investment followed by David Tepper as the 4th largest stake with $39.4 million investment. Since the end of June, the company lost 19%.
Macys Inc. (NYSE:M) is the 5th largest holding of Appaloosa Management. David Tepper has $184.5 million in M at the end of June. Compared to Tepper, Simons has a minor stake in the company. He has only $32 million invested in Macy’s. Since the end of the second quarter, Macy’s share price has gone down by 10%.
Frontier Oil Corp. (NYSE:FTO) is an American based independent petroleum refiner. Jim Simons has $35 million invested in Frontier. David Tepper owns around $38.5 million worth of Frontier Oil shares. Cliff Asness purchased the highest stake in the company during the second quarter. He has $59.1 million invested in the company.
Valero Energy Corp. (NYSE:VLO): Tepper has $198.4 million in Valero. Jim Simons has a minor stake in the company with $32.6 million invested in the company. Valero lost 12.6% since the end of June. Steven Cohen is also bullish about Valero. He has the highest stake in the company after Tepper.
Navistar International Corp. (NYSE:NAV) has lost 31% since the end of the second quarter. Luckily both managers have small stakes in the stock. Jim Simons has $24.6 million while David Tepper has $36.7 million invested in the company. Jeffrey Altman’s Owl Creek Asset Management has the highest stake in Navistar with $387.7 invested in the company.
Mosaic Co. (NYSE:MOS) is Appaloosa’s latest addition to its equity portfolio. It is the fund’s 7th largest holding. Similar to David Tepper, during the second quarter, Louis Bacon added Mosaic Co (MOS) to Moore Global’s equity portfolio. Since the end of the second quarter, Mosaic has gained 5%. Jim Simons profited as well as he has $21.4 million invested in the company.
Metlife Inc. (NYSE:MET) has lost 28.4% since the end of June. Appaloosa has $61.8 million while Jim Simons has $204 million invested in the company. John Paulson is also bullish about the financial sector. He has $189.5 invested in Metlife.
Dean Foods Co. New (NYSE:DF) is an ice cream and frozen food company. David Tepper has the highest stake in the company followed by Jim Simons. Tepper has $110.8 invested in Dean Foods while Simons has a minor $19 million invested in the company. Since the end of June, Dean Foods has lost 30.6%.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.