We recently released a list According to Jim Simons' Renaissance Technology In this article, we will explore the position of Palantir Technologies Inc. (NASDAQ:PLTR), which, according to Jim Simons' Renaissance technology, is contrary to other best stocks.
Even after his death in 2024, billionaire investor and mathematician Jim Simons is still known as the "Quantum King" of hedge funds due to his New York-based quantitative trading company. After years of studying the financial industry, Simmons realized the untapped potential of using quantitative analysis to capitalize on market inefficiencies. This insight led him to develop a data-driven investment strategy that uses only statistical and mathematical models to analyze market behavior. By identifying subtle non-random patterns in financial data, Quant Genius predicts future stock movements and produces impressive returns.
Although Jim Simons' Secret Medal Hedge Fund is a Renaissance flagship, it has achieved breakthrough results since its inception. During the DOT-COM collapse in the early 2000s and the global financial crisis between 2007 and 2011, the Medal Fund received 56.6% and 74.6% on impressive returns. The fund's annual yield has been 31.5% since its first two years of operation. At the time of his death, Simmons was worth $31.4 billion, thanks to the medal fund and Renaissance market performance that ranked him among the richest people in the world.
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Renaissance Technologies' computer-driven powerhouse came off to a great start after a stellar performance in 2024. The Renaissance Institutional Diversified Alpha Fund has gained 9.05% as of February, continuing to build on its impressive 2024 return of 15.6%, which was its best since its inception in 2021. Meanwhile, the Renaissance Institutional Equities Fund has had its best start in over ten years, rising in the first two months of 2025, was 11.85%. In addition to using stock index futures and options to help manage risks, both funds can maintain considerable personal stock positions. However, the company warns that it is difficult to quickly relax these huge holdings without affecting market prices.
In this list, we picked stocks from Renaissance Technologies’ 13F portfolio at the end of the fourth quarter of 2024. These stocks are also popular among elite hedge funds.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Software engineers manipulate huge networks of code on virtual monitors.
Renaissance Technology Q4 shares: US$1.72 billion
Number of hedge fund holders: 64
Palantir Technologies Inc. (NASDAQ:PLTR) is a software and data analytics company that develops platforms for large corporations, financial institutions and government organizations to analyze large amounts of data. Its government departments serve customers from both the U.S. government and non-U.S. government agencies, while the business departments oversee customers from various non-government industries.
On May 6, Cantor Fitzgerald raised its price target for Palantir Technologies Inc. (NASDAQ:PLTR) and rated at $98 to $110 with a neutral rating. The change comes after Palantir's 2025 revenue beat the visible Alpha consensus by 2.5%. The company attributed this performance to strong results in the U.S. business sector, where revenue exceeded forecasts by 10%, and overall government revenue was 5% higher than expected. However, Cantor Fitzgerald observed that while there are positive aspects of the report, the level of revenue performance was lower than the previous quarter. Due to ongoing challenges throughout Europe, international revenue, especially in the commercial sector abroad, is not forecasted at 16%.
Ithaca U.S. growth strategy points out the following content about Palantir Technologies Inc. (NASDAQ:PLTR) in its Q1 2025 Investor's letter:
“From the frontline of the war zone to the Fortune 500 enterprises, Palantir Technologies Inc. (NASDAQ:PLTR) Build software to solve advanced action projects, address defense and security issues and improve organizational efficiency. The company offers many software products from data analytics and curation (Palantir Gotham and Foundry) to cloud-based operational software (Apollo). The company is in some way popular, partly because government contracts (about 55% of revenue) are caused by recent and continuous global conflicts. In addition to creating generated AI defense solutions for governments around the world, business customers (about 45% of revenue) flock to company security and data analytics solutions to monitor and analyze business data and protect sensitive information. The stock's rise in the quarter was due to a strong revenue report that outpaced street expectations and investors' excitement for the company's ability to further acquire AI products from a growing customer base. ”
Overall, PLTR Ranked first Our list of the best stocks, according to Jim Simons' Renaissance Technique. Although we acknowledge the potential of PLTR as an investment, our belief is that certain AI stocks offer higher returns in a shorter time frame and make greater hope in this range. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than PLTR but have less than 5 times its earnings, check out our report The cheapest AI stock.
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Disclosure: None. This article was originally published in Inside monkey.