Billionaire Paul Tudor Jones’s Telecom and Tech Picks: MetroPCS Communications Inc (PCS), Vodafone Group Plc (ADR) (VOD)

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An interesting tech pick from Jones is Western Digital Corp. (NASDAQ:WDC). He increased his holding in the company from 6,300 shares in Q3 of 2012 to 283,900 shares in Q4 of 2012.  Western Digital manufactures hard drives and other data storage devices.  The company released positive earnings news in January with a fiscal second-quarter profit of $335 million, compared with $145 million for the prior year period. The company’s share price has rebounded an impressive 40% since early December, and is currently trading above its 50 day and 200 day SMA.  However, the run-up is potentially near a top, as the stock is within striking distance of a multi-year high and daily volume appears to be falling slightly.  Further, the stock has a beta of 1.48 and shows some signs of volatility.  As such, it is quite possible that Tudor Investment Corp. may have already liquidated some of its position in the company, thereby locking in gains.

A final tech pick from Tudor Jones is VMware, Inc. (NYSE:VMW).  VMware recently announced lowered guidance for 2013 and job cutbacks.  The market reacted negatively, and the company’s stock price has gotten hammered by over 23% year to date, and over 28% for the prior year.  The stock is heavily shorted with a short float of around 14%. Despite other hedge funds investing in VMWare, investors may want to stay away until it appears that the company’s fortunes are on the rebound. (See what other billionaire is investing in VMware.)

Paul Tudor Jones’s picks indicate an attempt to profit from consolidation among companies in the telecommunications sector, as well an attempt to gain exposure to dividend yield.  Investors should continue to pay attention to Tudor Investment Corp.’s 13F filings to see what moves Tudor Jones makes this quarter.

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