Jim Simons' Long-Term Stock Picks

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 |  Includes: AAPL, ALTR, BMY, CL, GOOG, INTC, LLY, LO, MCD, NVO, PCLN, PM
by: Insider Monkey

Jim Simons' Medallion Fund is the best hedge fund that we have come across. The fund's returns are so spectacular that Jim Simons became one of the richest people on the planet. Medallion Fund employs high frequency trading and exploits inefficiencies in the stock market. One strategy they use takes advantage of the inefficiencies in the execution of large transactions. One of their algorithms determines whether a very large order is executed and front runs it. As a result Medallion experiences high transaction costs and high expenses. That's why they charge a 5% fixed fee. On top of that they charge performance fees. That fee had been 20%, but after 2000 it increased initially to 36% and then to 44%.

Below we compiled a list of stocks that Simons has been holding since the beginning of this year. These are Simons’ holdings with at least $200 million invested at the end of June.

Company

Ticker

Value (x1000)

YTD Return

APPLE INC

AAPL

445837

15.70%

LILLY ELI & CO

LLY

387873

10.03%

LORILLARD INC

LO

311390

40.63%

INTEL CORP

INTC

280841

5.02%

GOOGLE INC

GOOG

280581

-14.78%

PHILIP MORRIS INTERNATIONAL INC

PM

242355

9.73%

COLGATE PALMOLIVE CO

CL

229049

13.43%

NOVO NORDISK A S

NVO

221194

-9.16%

ALTERA CORP

ALTR

220792

-12.56%

MCDONALDS CORP

MCD

207393

17.23%

BRISTOL MYERS SQUIBB CO

BMY

207290

22.43%

PRICELINE COM INC

PCLN

205130

8.05%

Click to enlarge

Apple Inc. is a U.S. multinational corporation that designs and markets consumer electronics, computer software and personal computers. It returned 15.70% since the beginning of this year. It has a market cap of $347.29 billion and a P/E ratio of 14.82. Simons had $445.8 million invested in AAPL shares at the end of June.

Eli Lilly and Company is a global pharmaceutical company. It returned 10.03% since the beginning of this year. It has a market cap of $40.47 billion and a P/E ratio of 8.55. Simons invested $387.9 million in LLY shares.

Lorillard Tobacco Company is an American tobacco company marketing cigarettes under the brand names Newport, Maverick, Old Gold, Kent, True, Satin and Max. It returned 40.63% since the beginning of this year. It has a market cap of $15.64 billion and a P/E ratio of 15.45. Simons invested $311.4 million in LO shares.

Intel Corporation is a U.S. multinational semiconductor chip maker corporation. It returned 5.02% since the beginning of this year. It has a market cap of $108.28 billion and a P/E ratio of 9.46. Simons invested $280.6 million in INTC shares. Ken Fisher had more than $400 million invested in INTC at the end of June.

Google Inc. is an American multinational public corporation invested in Internet search, cloud computing and advertising technologies. It lost 14.78% since the beginning of this year. It has a market cap of $160.00 billion and a P/E ratio of 17.88. Simons invested $280.6 million in GOOG shares.

Philip Morris International is an international tobacco company, with products sold in over 160 countries. It returned 9.73% since the beginning of this year. It has a market cap of $108.48 billion and a P/E ratio of 14.15. Simons invested $242.3 million in PM shares.

Colgate-Palmolive Company is an American diversified multinational corporation focused on the production, distribution and provision of household, healthcare and personal products, such as soaps, detergents and oral hygiene products. It returned 13.43% since the beginning of this year. It has a market cap of $42.96 billion and a P/E ratio of 18.09. Simons invested $229 million in CL shares.

Novo Nordisk manufactures and markets pharmaceutical products and services. It lost 9.16% since the beginning of this year. It has a market cap of $55.03 billion and a P/E ratio of 19.73. Simons invested $221 million in NVO shares.

Altera Corporation is a Silicon Valley manufacturer of PLDs. It lost 12.56% since the beginning of this year. It has a market cap of $10 billion and a P/E ratio of 11.34. Simons invested $220.8 million in ALTR shares.

McDonald's Corporation is the world's largest chain of hamburger fast food restaurants, serving around 64 million customers daily. It returned 17.23% since the beginning of this year. It has a market cap of $88.75 billion and a P/E ratio of 17.41. Simons invested $207.4 million in MCD shares. Scout Capital Management had also nearly $200 million in MCD at the end of June.

Bristol-Myers Squibb is a pharmaceutical company, headquartered in New York City. It returned 22.43% since the beginning of this year. It has a market cap of $53.71 billion and a P/E ratio of 16.32. Simons invested $207.3 million in BMY shares.

Priceline.com is a company and a commercial website that helps users obtain discount rates for travel-related purchases such as airline tickets and hotel stays. It returned 8.05% since the beginning of this year. It has a market cap of $22.18 billion and a P/E ratio of 31.61. Simons invested $205 million in PCLN shares. Andreas Halvorsen's Viking Global had more than $500 million in PCLN at the end of second quarter.

Disclosure: I am long PM.