The Top 3 Stock Picks at the World's Greatest Hedge Fund

Core Insights - Renaissance Technologies is recognized as one of the world's most successful hedge funds, primarily due to its Medallion Fund, which achieved an annualized return of 39% after fees from 1988 to 2021 [1] - The firm has notable long equity holdings, including significant positions in Novo Nordisk, United Therapeutics, and Palantir Technologies, reflecting its investment strategies and market outlook [2][14] Group 1: Novo Nordisk - At the end of 2024, Renaissance's third-largest long equity holding was Novo Nordisk, with a stake valued at $715 million, indicating strong conviction in the company [3][5] - Novo Nordisk's stock generated a total return of approximately 480$737 million at the end of 2024, with a total return of approximately 285% since Q2 2019 [7][8] - The company has six FDA-approved medications, with its leading product, Tyvaso, generating over $1.6 billion in sales in 2024, reflecting a 31$1.7 billion, having increased by over 1,700% since the end of 2022 [11] - Renaissance reduced its stake in Palantir by over 40% from Q3 2024, which may have been a strategic move given the stock's significant rise of over 200% since that time [12] - Analysts have expressed concerns about Palantir's high forward price-to-earnings multiple, indicating potential downside risks [13]