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What Did Renaissance Technologies Buy During COVID? Math, Mayo, and Monster Bets
Renaissance Technologies—the most secretive, algorithmic, brainiac hedge fund on Earth—showed its hand in Q1 2020 with respect to COVID-19. And it wasn’t meme stocks. It was molecules, models, and meat (literally—hola, Chipotle).
Let’s decode how RenTech’s machine overlords played the greatest market panic of our generation.
Q1 2020: Panic, Pandemics, and Predictive Code
As the world shut down, Jim Simons’ quant empire went defensive—but not in the way most humans would. They didn’t go to cash. They bought pharmaceuticals, biotech, and burritos. This was not a bunker mentality—it was a probabilistic portfolio refresh.
Biotech, But Make It Billions
| Stock | Stake (Q1 2020) | Theme |
| Bristol Myers (BMY) | $3.68B | Old reliable in new chaos, was also more than likely developing COVID-related drugs during the pandemic |
| Novo Nordisk (NVO) | $1.68B | Diabetes drugs = recurring revenue, stable |
| Vertex Pharma (VRTX) | $1.63B | Rare disease = high margin, largely insulated from overall market undulations |
| Biogen (BIIB) | $1.42B | Alzheimer’s hope play, might’ve also been working on COVID drugs |
| AbbVie (ABBV) | $1.03B | Humira and dividend combo, stable pick during times of instability |
Why it matters: When you’re betting on a virus-shaped world, cash flow from chronic illness becomes sexy.
Groceries, Gold, and… Guac?
- Walmart (WMT) – $1.1B stake–likely a stability operational play–Walmart was deemed essential and provided (and provides) everyday necessities all over the United States (toilet paper and PPE included, of course in high demand during this era)
- Target (TGT) – +24% position (likely a play on homeowners decorating their homes and getting grocery essentials as well)
- Domino’s (DPZ) – $642M (pizza > panic–also, more people at home, more likely to eat out from home)
- Chipotle (CMG) – $1.2B… because burritos are essential.
- Barrick Gold (GOLD) – +61% stake because when humans fear collapse, RenTech buys metal.
Also: Kroger. Yes, Kroger. $390M worth. Because math apparently loves mayonnaise and modest margins–another necessity and stability play.
What About Tech?
Yes, but sparingly:
- Palo Alto Networks (PANW) – Cybersecurity play
- Zoom (ZM) – NEW position (good call, obviously)
- Amazon (AMZN) – Actually trimmed by 43%! (sort of surprising to me, actually)
- Tesla (TSLA) – Cut by 81% (ouch, bot brain–perhaps a play on consumers not being able to go out and buy fancy EVs during COVID)
- Atlassian (TEAM) – +6% (software > suits–more people working remotely meant more teams having to connect and work remotely in seamless fashion, basically the basis of what Atlassian does)
Quant takeaway? Buy tech that secures, connects, or ships—not just dazzles.
The Quiet Utility Grab
Utilities made up a surprising chunk of RenTech’s COVID buy list:
| Stock | Stake |
| Duke Energy (DUK) | $572M |
| Entergy (ETR) | $534M |
| Southern Co (SO) | $412M |
| ConEd (ED) | $372M |
Why? In a world gone mad, power still needs to stay on. Algorithms love regulated revenue.
Key Takeaways
- RenTech didn’t panic. It recalculated.
- It leaned into biotech, boring food, and boring utilities.
- It dumped Tesla but loaded up on burritos and insulin.
- Oh, and they quietly bought Zoom before your grandma did.
Final Wrap-Up
Want to invest like the world’s greatest quant hedge fund during chaos?
- Don’t follow the news. Follow the math.
- Own what people can’t stop needing: medicine, meals, and megawatts.
- And remember: Even Renaissance can’t predict everything—just… most things.
DISCLAIMER: This analysis of the aforementioned stock security is in no way to be construed, understood, or seen as formal, professional, or any other form of investment advice. We are simply expressing our opinions regarding a publicly traded entity.
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