Google Inc (GOOG), Intel Corporation (INTC) and 3 Other Big Bets from Paul Tudor Jones

Page 1 of 2

TUDOR INVESTMENT CORPPaul Tudor Jones founded Tudor Investment in 1980 and has amassed a personal net worth of over $3 billion since. Thanks to his success, Tudor has the ability to charge above-average fees – a 4% management fee on AUM and a 23% performance fee – compared to the typical 2-and-20 structure. Tudor recently filed its third quarter 13F with the SEC, which reveals the public long-only equity holdings of the firm. In reviewing Tudor’s filing, we found five big-name stocks that the fund was loading up on. These five increases were focused on the tech and pharma industries, with each stock seeing at least a 100% increase from one quarter earlier (see Tudor’s newest stock picks).

Intel Corporation (NASDAQ:INTC) saw Tudor increase its stake over 500% last quarter. Intel is down over 30% year to date on continued PC sale weakness. Despite this stagnant segment, Intel does expect to grow revenue by 1% next year, with data center growth countering slowing PC sales. The chip-making giant pays quite the dividend, yielding 4.4%, which is even more impressive when you consider it is only a 35% payout of earnings. We see interim growth as being limited due to an expected decline in PC growth, but remain confident in Intel’s dividend given its $10 billion in cash on hand. Intel is still one of the top ten tech stocks loved by hedge funds (see all 10 here).

Google Inc (NASDAQ:GOOG) is now Tudor’s 13th largest 13F holding following a 300% increase in the firm’s shares last quarter. Despite an earnings hiccup – with Google missing estimates by 15% in 3Q – the stock managed to be up 30% during the third quarter. The search giant is expected to grow revenues by 16% in 2013, driven in part by the competed integration of Motorola Mobility. Google’s core business is expected to perform well also, with revenues up 21% in 2012 and 17% in 2013. Google trades a 22x trailing earnings, but is just a mere 13.5x on a forward-looking basis. Steven Cohen was one of the many billionaires who was bullish on Google last quarter (see Steven Cohen and SAC Capital’s top picks).

Dell Inc. (NASDAQ:DELL) was a near 1,000% increase for Tudor in 3Q – the largest of his five big bets listed. This PC company has been beaten down due to similar pressures as Intel: slowing PC sales. Dell is weathering the storm much better than rival HP, but should still manage to grow earnings over the next five years thanks to initiatives in the acquisitions market.

Dell hopes to break into the software business and its $2.4 billion purchase of Quest Software earlier this year was a big step. Assuming Dell can make a successful pivot toward software and continue innovation in its hardware segment – most notably via an ultrabook-tablet combo – we believe it is a value play. Dell trades at only 6x forward earnings, but also has a 6% expected long-term EPS growth rate, putting its PEG close to 1.0. Bridgewater Associates’ Ray Dalio upped his stake in Dell by over 60% last quarter (see Ray Dalio’s other key moves here).

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!