Facebook stock: Renaissance Tech buys $480 million stake

AP

• Renaissance Technologies, a quant hedge fund that
  oversees $84 billion, bought up $479.5 million worth of
  Facebook
  between April 1 and June 30, regulatory filings show.
• The hedge fund was apparently “buying the dip” after
  the social network’s scandal-ridden spring caused shares to
  plunge by 20% at the end of March. 
• 
  Watch
  Facebook trade in real time here. 
  

Renaissance Technologies, the $80 billion hedge fund founded by
Cold War code breaker James Simons, seems to think the worst for
Facebook
is over.

The hedge fund snapped up 2.47 million shares of the stock in the
second quarter — at a valuation of $479.5 million — according to

regulatory documents filed Tuesday. A back of the
envelope calculation shows the stake was established at an
average price of $194.13. 

Facebook has been one of the market’s top performing stocks in
recent months, coming off the Cambridge Analytica data-privacy
scandal. The stock rose 26% in the second quarter after tumbling
20% when the scandal first broke in late March.

Renaissance likely saw the brief lapse in stock price as a chance
to “buy the dip” in the wake of the carnage at the end of the
first quarter. That strategy has been wildly popular throughout
the nine-year bull market.

It’s possible Renaissance exited its position at some point
during the first half of the third quarter. If it hasn’t, it is
likely underwater on the trade as shares are now near $180
apiece.  

Other new investments disclosed in the filing include a $706.9
million stake in Apple, a $191.3 million stake in Microsoft, and
a 40% increase in its VMware holdings — now worth $777.4 million.

Markets Insider

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