Jim Simons’ RenTech fund quadrupled its Tesla stake last quarter – increasing its AMC stake by 38%

Jim Simons
Jim Simons.

  • Jim Simons’ RenTech quadrupled its Tesla share and increased its AMC position by 38% last quarter.
  • The AMC position of the quantitative hedge fund still declined in value as the stock price fell.
  • Simons’ fund turned its course against Tesla after reducing its efforts by 75% in the second quarter.

Renaissance Technologies quadrupled its Tesla stake and increased its AMC Entertainment investment by nearly 40% in the third quarter, Securities and Exchange Commission documentation shows.

RenTech, one of the largest and best performing hedge funds in history, increased its Tesla portfolio from around 204,000 shares to 814,000 shares. The electric car company’s share price rose 14% last quarter, meaning the value of RenTech’s position rose by about 360% to $ 631 million. As a result, the Tesla Foundation’s 13th most valuable asset was September 30, up from 106th place on the list at the end of June.

The quantitative hedge fund, which was founded by former NSA code breaker and MIT math professor Jim Simons, also strengthened its AMC position from 1.8 million shares to 2.5 million shares. However, the cinema chain – a firm favorite among meme stock traders – suffered a 33% drop in the share price last quarter. The value of RenTech’s stake decreased by 7% to $ 95 million as a result.

In particular, RenTech reduced its Tesla position by 75% in the three months to June 30, suggesting that it warmed up to Elon Musk’s automaker last quarter. Meanwhile, the fund had already tripled its AMC portfolio in the second quarter, indicating that it grew even more bullish on the stock last quarter.

RenTech has previously held major positions in both companies. For example, it owned a split-adjusted 20 million Tesla shares by the end of 2019, which would be worth more than $ 20 billion today. It also held nearly 3.5 million AMC shares at the turn of the year in 2019, which would have brought in around $ 250 million when AMC’s share price peaked in May this year.

The hedge fund, which uses algorithms to determine most of its trades, counted a $ 2.1 billion stake in Novo-Nordisk, a $ 1.2 billion stake in Atlassian and a $ 950 million position in Verisign as its three largest holdings at the end of September.

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