Editor’s Note: The article was changed to reflect Renaissance Technologies, not Jim Simons, who passed away in May 2024.

In its third-quarter update, Renaissance Technologies, founded by the late famed "Quant King” Jim Simons, showcased some notable pivots within its $66.5 billion portfolio.

Microsoft Stake, Trims Other Tech Names

Renaissance Technologies increased its stake in Microsoft Corp (NASDAQ:MSFT), betting on the tech giant's expansion in cloud and AI sectors, Renaissance revealed in a Wednesday SEC filing.

At the same time, the company pared back investments in high-growth stocks such as Tesla Inc (NASDAQ:TSLA) and NVIDIA Corp (NASDAQ:NVDA). Nvidia's AI boom and Tesla's market lead in EVs didn't deter the company from reducing exposure, perhaps as a hedge against market corrections.

Broadcom Inc (NASDAQ:AVGO) was also scaled back, suggesting Renaissance might be positioning itself more defensively as tech valuations reach historic highs.

Renaissance's move to fortify positions in well-established tech names could signal a more cautious stance on speculative growth.

Palantir Takes The Lead In Renaissance's Portfolio

Among all the holdings, Palantir Technologies Inc (NYSE:PLTR) now stands as Renaissance's largest position, making up 2.15% of the portfolio. Known for its deep government contracts and burgeoning AI applications, Palantir's data-centric profile aligns well with Renaissance’s quant-driven approach.

This shift highlights a strategic tilt toward resilient, data-focused tech plays, reflecting the company’s long-term confidence in the power of predictive analytics and secure data solutions.

Read Also: Can Palantir Sustain Its 300X Valuation After Climbing 266% This Year?

Top Buys: Microsoft, Apple, Cisco

Alongside Microsoft, Renaissance added significantly to Apple Inc (NASDAQ:AAPL) and Cisco Systems Inc (NASDAQ:CSCO). This trio signals a preference for big-cap stability in a year marked by market volatility.

While Microsoft's AI and cloud growth makes it a solid pick, Apple and Cisco bring diverse revenue streams, from consumer tech to networking infrastructure, giving Renaissance a balanced tech exposure.

Read Next:

• Ray Dalio’s Bridgewater Cuts Stake In Microsoft Stock By 20% – Is Big Tech Losing Its Shine?

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