Before the Jensen Huang scandal broke out, the Quant King precisely cleared out Nvidia!

Quantitative investment giant Renaissance Technologies made significant adjustments to its equity portfolio in the third quarter, almost completely liquidating its holdings in Nvidia before the company's scandal surfaced, while significantly increasing its positions in Micron Technology, AMD, and SanDisk.

According to the latest 13F filing, as of September 30, Renaissance Technologies’ holdings in Nvidia dropped from 7.09 million shares at the end of the second quarter to 23,170 shares, a reduction of 99.7%. Its Meta holdings fell from 2.02 million shares to 1,577 shares, a 99.9% reduction, nearly clearing both companies' stocks from its portfolio.

In stark contrast to the large reduction in Nvidia, Renaissance Technologies increased its holdings in Micron by 618.7% to 1.52 million shares, with the end-of-quarter position valued at approximately $1.62 billion. Its AMD holdings increased by 140.5% to nearly 2 million shares, valuing the stake at about $1.21 billion, while SanDisk shares also saw a dramatic rise.

Additionally, Renaissance Technologies established a new position in SpaceX and adjusted its allocations in the healthcare and financial sectors. At the end of the third quarter, its disclosed total equity holdings were valued at $73.424 billion, up 1.1% from the end of the second quarter. However, the change in holding value does not necessarily equate to investment gains.

Nvidia and Meta Holdings Nearly Zeroed Out

In the third quarter, Renaissance Technologies drastically reduced its positions in Nvidia and Meta, almost completely removing both companies from its disclosed portfolio.

As of September 30, the firm held 23,170 shares of Nvidia, down 99.7% from 7.09 million shares at the end of the second quarter, with a position value of about $5.3 million. Meta holdings dropped from 2.02 million shares to 1,577 shares, a 99.9% reduction, bringing the value down to roughly $1.2 million by the quarter's end.

The sell-off was not limited to these two companies. During the third quarter, Renaissance Technologies reduced its Amazon holdings by 99.5%, Apple by 99.8%, TSMC by 85.1%, and Broadcom by 99.9%.

Palantir was also heavily trimmed, with holdings cut by 70.6%, an estimated reduction of approximately $1 billion. By quarter’s end, the firm still held about 2.22 million shares of Palantir, worth roughly $416 million.

Significant Increase in Micron, AMD, and SanDisk Positions

While trimming multiple major technology stocks, Renaissance Technologies significantly boosted its allocations to memory chip manufacturers and other semiconductor firms.

Micron became one of its primary targets for increased exposure in the third quarter. The company increased its Micron holdings by 618.7% to 1.52 million shares, with a quarter-end value of about $1.62 billion, accounting for 2.2% of its disclosed equity portfolio. Based on quarter-end share prices, the increase was worth around $1.4 billion.

AMD holdings rose by 140.5% to nearly 2 million shares, valued at around $1.21 billion, with the increased investment estimated at $704 million. SanDisk holdings surged from 4,980 shares to 276,500 shares, an increase of 5,451%, ending the quarter with a position worth roughly $481 million.

From the changes in positions, Renaissance Technologies in the third quarter significantly reduced exposure to major technology stocks like Nvidia, while notably increasing allocations to Micron, AMD, and SanDisk. However, the 13F filing only reveals quarter-end positions and does not directly indicate the specific timing, prices, or rationale behind the trades.

New SpaceX Position, Increased Healthcare and Financial Stocks

In addition to the semiconductor sector, Renaissance Technologies established a new position in SpaceX in the third quarter, holding 4.1132 million shares valued at approximately $620.5 million by quarter’s end.

The healthcare sector also saw increased investment. UnitedHealth Group holdings were up 506.7%, reaching around $817 million in value by the end of the quarter.

In the financial sector, Renaissance Technologies initiated a new position in Bank of America, valued at approximately $351.3 million, and also held about $244.8 million in Goldman Sachs.

Total Portfolio Value Rises to $73.4 Billion

At the end of the third quarter, Renaissance Technologies' disclosed total equity holdings reached $73.424 billion, a 1.1% increase from $72.6 billion at the end of the second quarter, covering 3,151 positions.

In terms of industry distribution, technology accounted for 23.8% of disclosed holdings, healthcare for 15.7%, while industries, consumer discretionary, and financial services accounted for 10.6%, 10.5%, and 10.3%, respectively.

As for fund performance, according to Bloomberg, Renaissance Technologies’ Institutional Equities Fund rose by 6% in October, bringing its year-to-date return to 12.3%.

It is important to note that 13F filings reflect holdings as of September 30 and do not represent real-time investment portfolios. Changes in holding values are not equivalent to investment returns, as they are affected by trading activity and market price fluctuations.