We recently published a list of Renaissance Technologies Portfolio: Top 10 Stock Picks. In this article, we are going to take a look at where Apple Inc. (NASDAQ:AAPL) stands against other Renaissance Technologies portfolio’s top stock picks.
The American quant hedge fund Renaissance Technologies is known for using statistical and mathematical tools to drive its investment programs. It was founded in 1982 by Jim Simons, a mathematician who worked as a code breaker for the US National Security Agency during the Cold War. As of December 31, Renaissance Technologies had a portfolio valued at over $67.5 billion.
Simons was among the pioneers of quantitative investing. He had an estimated net worth of $31.4 billion at the time of his death in May last year, making him the 51st richest person in the world at the time. His use of mathematical models and algorithms to drive long-term investment returns earned him a legacy that rivaled the likes of Warren Buffett and George Soros.
The Renaissance founder stepped down from active hedge fund management in 2010 and resigned as its executive chairman in 2021. The firm is now headed by Peter Brown, who has a strong educational background in mathematics and computer sciences. His father, Henry B.R. Brown invented the Reserve Primary Fund in 1970, the first money market fund to be established.
Brown is committed to using mathematical models to discover and unlock the value of stocks in the market. 2024 was a strong year for Renaissance Technologies. According to a report on Business Insider, the two funds that are open to investors—Renaissance Institutional Equities Fund (RIEF) and Renaissance Institutional Diversified Alpha (RIDA)—delivered double-digit returns of 22.7% and 15.6%, respectively.
Its signature Medallion fund performed even better, with a 30% gain, outperforming the broader market by nearly seven percentage points. Medallion was closed to outside investors in 1993 and has since then only been available to past and current employees, and their families. The fund generated average annual returns of 66% for three decades between 1988 and 2018, resulting in over $100 billion in profits during the period. This earned Medallion the reputation of being one of the most successful investment portfolios of all time.
On February 13, Renaissance Technologies filed a portfolio update, reflecting its holdings for the fourth quarter of 2024. The 13F SEC filings revealed significant changes in the portfolio, including a substantial reduction of stake in a leading technology conglomerate and increased investments in Asia-based artificial intelligence companies during the quarter.
We scanned Renaissance Technologies’ 13F portfolio, as of December 31, 2024. From there, we picked the top 10 stocks according to their stake value and ranked them in ascending order.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
Apple Inc. (AAPL): Among Renaissance Technologies Portfolio’s Top Stock Picks
A wide view of an Apple store, showing the range of products the company offers.
Stake Value as of Q4 2024: $617,945,975
Apple Inc. (NASDAQ:AAPL) is a leading American technology company known for its consumer electronics, software, and other related products. Its premium line of products, which includes the iPhone, iPad, Mac computers, and a range of other accessories, has earned Apple widespread acclaim and customer loyalty.
On February 19, the company unveiled the iPhone 16e, which will offer artificial intelligence features at a dramatically lower price compared to its standard flagships. Like the other higher-priced iPhones, this new version will be equipped with the latest-generation A18 chip, as Apple Inc. (NASDAQ:AAPL) hopes to bolster demand for its most profitable product lineup through a more affordable option.
Apple Inc. (NASDAQ:AAPL) has also announced plans to expand in Saudi Arabia, beginning with the launch of an online store in the summer of this year, before opening several flagship retail locations across the country, starting in 2026. As part of these efforts, the company is also in the initial stages of planning an iconic retail store in Diriyah, a UNESCO World Heritage site.
While iPhone sales dipped by nearly 1% in the recent quarter (Q1 2025) due to weakness in Greater China, Apple Inc. (NASDAQ:AAPL)’s gross margin reached a record 46.9%. The strong results were driven by a flourishing services business. Total revenue stood at $124.3 billion, up 4% year-over-year, while quarterly diluted EPS grew 10% to $2.40 per share.
After impressive first-quarter results, most analysts maintained their Buy rating for the stock. Investors are also bullish on Apple Inc. (NASDAQ:AAPL). According to Insider Monkey’s database for Q4 2024, 166 hedge funds held a stake in the company, up from 158 at the end of the third quarter.
Overall, AAPL ranks 4th on our list of Renaissance Technologies portfolio’s top stock picks. While we acknowledge the potential of software companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
