Jim Simons, Insiders Bullish About These Stocks

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 |  Includes: AMGN, CMCSA, CTL, GE, HLF, JNJ, JPM, LO, MJN, NEM, PG, PM, VMW, XOM
by: Insider Monkey

Jim Simons is the founder of Renaissance Technologies. The fund’s returns are so spectacular that Simons became one of the richest people in the world. Hedge funds such as Renaissance Technologies devote significant resources to researching stocks and sometimes cross the line to try to obtain material non-public information before investing. Corporate insiders have material non-public information and they sometimes trade based on such information. Other times they have an edge because they know their companies and industries better than almost all other investors. We believe that by imitating the stock picks of these smartest investors in the world, investors are more likely to beat the market in the long term.

Below we compiled a list of 14 stocks that Jim Simons and insiders are bullish about. All these stocks were purchased by at least one insider over the past six months.

Company

Ticker

Value (x1000)

No. of Insiders

YTD Return

LORILLARD INC

LO

311,390

2

35.48%

PROCTER & GAMBLE

PG

253,112

1

-3.29%

PHILIP MORRIS

PM

242,355

1

12.90%

EXXON MOBIL

XOM

227,245

1

-5.49%

JPMORGAN CHASE

JPM

199,815

6

-31.98%

MEAD JOHNSON

MJN

148,610

2

18.59%

AMGEN INC

AMGN

139,702

1

-0.92%

NEWMONT MINING

NEM

112,943

1

8.03%

GENERAL ELECTRIC

GE

95,531

1

-15.70%

HERBALIFE LTD

HLF

83,901

1

57.94%

JOHNSON & JOHNSON

JNJ

80,795

1

1.21%

COMCAST CORP

CMCSA

80,003

1

-5.19%

CENTURYLINK

CTL

78,977

4

-25.47%

VMWARE INC

VMW

75,724

1

-10.72%

Click to enlarge

Lorillard Inc. (NYSE:LO) is the largest position in Simons’ portfolio at the end of June. Lorillard is the manufacturer of cigarettes in the United States. Simons increased his position by 6% during the second quarter to $311 million. Two insiders purchased LO over the past six months and it returned 35.48% since the beginning of this year. LO has a market cap of $14.63B and a P/E ratio of 14.48. Jean-Marie Eveillard also had $250 million invested in LO shares.

Simons initiated a brand new $253 million of Procter & Gamble Co (NYSE:PG) during the second quarter. P&G is a company focused on providing consumer packaged goods. The stock was purchased by one insider over the past six months and lost 3.29% vs. -9.88% for SPY since the beginning of this year. PG has a market cap of $167.22B and a P/E ratio of 15.49. Warren Buffett invested $4.9 billion in PG (see Warren Buffett’s top stock picks).

During the second quarter, Simons increased his position in Philip Morris International Inc (NYSE:PM) by 161% to $242 million. The company is engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside of the United States. PM was purchased by one insider over the past six months and returned 12.90% since the beginning of this year. PM has a market cap of $111.84B and a P/E ratio of 14.57. Tom Russo had $543 million invested in PM.

JPMorgan Chase & Co (NYSE:JPM) has the most insider purchases over the past six months. Six insiders purchased the stock while it lost 31.98% since the beginning of this year. Simons initiated a brand new $200 million JPM during the second quarter. JPM has a market cap of $115.45B and a P/E ratio of 6.32. John Paulson had over $250 million invested in JPM (check out John Paulson’s top stock picks).

Mead Johnson Nutrition Co. (NYSE:MJN) is a pediatric nutrition company. Simons increased his position in MJN by 60% to $149 million over the second quarter. MJN was purchased by two insiders during the past six months and returned 18.59% since the beginning of this year. MJN has a market cap of $14.99B and a P/E ratio of 31.29. Dan Loeb invested over $100 million in MJN shares (see Dan Loeb’s top stock picks).

Newmont Mining Corporation (NYSE:NEM) is a gold producer. Simons increased his position in NEM by 55% to $113 million during the second quarter. NEM was purchased by one insider during the past six months and returned 8.03% so far this year. NEM has a market cap of $30.51B and a P/E ratio of 12.84. Jean-Marie Eveillard had over $300 million invested in NEM shares.

Herbalife Ltd (NYSE:HLF) is the best performing stock on the list above. It returned 57.94% since the beginning of this year. Herbalife sells weight management, nutritional supplements, energy, sports and fitness products and personal care products. One insider purchased HLF over the past six months and Simons increased his position in HLF by 128% to $84 million during the second quarter. HLF has a market cap of $6.46B and a P/E ratio of 19.23. Steven Richman invested $188 million in HLF shares.

Comcast Corp (NASDAQ:CMCSA) is a provider of video, high-speed Internet and phone services. Simons largely increased his position in CMCSA by 1627% to $80 million during the second quarter. CMCSA was purchased by one insider and lost 5.19% since the beginning of this year, outperforming the market by four percentage points. CMCSA has a market cap of $58.31B and a P/E ratio of 15.43. John Paulson and Jean Eveillard both invested about $500 million in CMCSA shares.

Disclosure: I am long PM, CTL.