James Simons was the Most Successful Hedge Fund Manager Ever — Here’s How to (Kinda) Invest Like Him

TL;DR: TODAY’S EDITION

• James Simons built the most successful hedge fund in history — Renaissance’s Medallion Fund has returned 66% annually before fees.

• While retail investors can’t access Medallion, they can copy Renaissance’s public equity holdings.

• We backtested those picks from 2010 to 2025 — and found alpha in most years.

• Here are their current holdings and the results you would have achieved by copying them.

RENAISSANCE TECHNOLOGIES

🧠 Wait — Who Is James Simons Again?

Before we get into stock talk, let’s set the scene.

James Simons wasn’t your typical Wall Street suit. He was a codebreaker, mathematician, and quant godfather who turned formulas into fortunes. In 1982, he founded Renaissance Technologies, and in 1988, he launched the legendary Medallion Fund — an algorithmic trading machine so profitable that it eventually kicked out outside investors.

Medallion has since compounded at 66% a year before fees, and Simons himself amassed a fortune north of $30 billionbefore his death in 2024.

🔍 So… Can I Invest Like Him?

Not exactly. Medallion is closed to outsiders and runs highly secretive, high-frequency strategies.

But Simons’ firm, Renaissance Technologies, also manages billions in long-only equities. And thanks to the SEC, we can track what they hold — and even backtest what would’ve happened if you just copied their top public picks.

📦 Top 10 Holdings (Q1 2025)

Renaissance currently holds over 3,000 stocks, but their portfolio isn’t random. These are their top 20 positions by market value:

Let’s take a look at the Top 10:

• Palantir (PLTR)

  Data analytics for the military and enterprise. Up 85% YTD — they’ve trimmed, but still #1.

• Verisign (VRSN)

  Manages internet domain names. Boring? Yes. Profitable? Very. Held since 2009.

• Corcept Therapeutics (CORT)

  Niche pharma firm focused on cortisol modulation. Quiet compounder.

• Robinhood (HOOD)

  Simons bought more last quarter. Retail trading’s comeback kid?

• Sprouts Farmers Market (SFM)

  Grocery chain with a healthy tilt. Defensive and cheap.

• United Therapeutics (UTHR)

  Biotech focused on lung diseases. Long-time holding.

• Gilead Sciences (GILD)

  Big pharma with a focus on HIV and antiviral treatments.

• Vertex Pharma (VRTX)

  Dominant player in cystic fibrosis.

• Exelixis (EXEL)

  Oncology biotech with strong fundamentals.

• Franco-Nevada (FNV)

  Gold royalty company — a smart hedge in turbulent times.

➡️ These stocks alone made up ~11% of their total portfolio, and if you copied them… well, keep reading.

📊 Performance: What If You Copied Renaissance?

As Renaissance holds over 3000 stocks, we looked at what would’ve happened if you copied the Top 50 - weighted by the firm’s allocations.

🟢 Takeaway:

Copying the top 50 Renaissance holdings would’ve outperformed the market in 10 of the last 16 years, with especially strong relative returns in rough markets like 2022 and 2025.

But let’s face it — tracking 50 positions takes time, tools, and spreadsheet stamina.

🧪 Strategy 2: Copying Just the Top 10

So what if you simplified? We backtested a strategy that just copies Renaissance’s Top 10 holdings.

🟢 Takeaway:

Even with just 10 stocks, you’d outperform the S&P in 9 of 16 years — and crushed it in the last two.

This is a “low effort, high alpha” strategy: no models, no code, just follow the filings.

📈 Premium: Want to Go Further?

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• The Top 20 most successful investors by 3-, 5-, and 7-year performance

• Their latest portfolios — updated and ranked

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Example? In 2025, just copying Institutional Venture Management XVI (yes, real name) would’ve made you +118% YTD — from just 2 stocks.

No guesswork. Just data. And alpha.

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