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- Jim Simons' quant fund Renaissance Technologies made the first bet on Elon Musk’s Tesla in 2013.
- It purchased 2.7 million shares in split-adjusted for $19 million back then and more than $500 million today.
- RenTech's stake reached 59 million shares in 2019, or $12 billion today at Tesla's stock prices.
Renaissance Technologies invested in Tesla 10 years ago. Since then, its stake has risen from $400,000 to $1.6 million, according to a Markets Insider analysis.
Jim Simons, a former NSA codebreaker who is also MIT math professor, founded RenTech. It uses algorithms to make most of its trades and is one of the best-performing hedge funds ever.
According to filings, the quantitative fund began investing in Tesla in the second quarter 2013. This was three years after Elon Musk's public company. After adjusting for Tesla’s 5-for-1 stock split in 2020, and its 3-for-1 stock splitting last August, it purchased 178,000 shares. This was a total of 2.7 million shares.
The stock price of the electric-vehicle manufacturer has risen by 28 times, from $7 to $198 split-adjusted as of Friday's close. RenTech's original position today would be worth more than $500 million, as opposed to just $19 million when it first was purchased.
Simons' fund increased its Tesla bet by 9.1 million shares over the next two quarters — equal to $126 million and $1.8 billion at Friday's close.
RenTech held the stock of the automaker on an intermittent basis for the next few decades. The company's stock reached a peak at 59 million shares in the fourth quarter 2019, which was worth $1.6 billion and $11.7 billion respectively.
Simons' firm slowly reduced its stake over the next few years. Then, it slashed from 2.2 millions shares to just 1,400 shares during the third quarter last year. In just three months, the position's value was reduced from $504 million down to $371,000.
The quant fund, however, piled back into Tesla in the last quarter, increasing its stake to 3.4 Million shares valued at $419 million at December's end and $673 million by Friday's close.
Although Tesla ownership by RenTech has been an emotional rollercoaster ride it is not easy to see the value of the stock beyond its continued interest. Quant funds are able to make dramatic changes to their portfolios daily, while quarterly filings provide only a snapshot of what their holdings were on one trading day.
Portfolio updates do not include shares shorted, private investments and overseas wagers. They don't always show a complete picture of the fund's investments.
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By: tmohamed@insider.com (Theron Mohamed)
Title: Jim Simons’ RenTech first bet on Tesla a decade ago – and the fund once held a stake in Elon Musk’s automaker worth $12 billion today
Sourced From: markets.businessinsider.com/news/stocks/jim-simons-rentech-stock-portfolio-tesla-elon-musk-electric-vehicles-2023-3
Published Date: Mon, 06 Mar 2023 12:39:09 +0000
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