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

Two of Tudor’s other big increases were in the pharma industry: Pfizer Inc. (NYSE:PFE) and Eli Lilly & Co. (NYSE:LLY). Pfizer was one of Tudor’s more modest increases, upping his stake 175%. Pfizer is quite the pick in the pharma space, and is one of the top loved drug stocks by hedge funds. Pfizer is raising cash with the sale of its nutrition business, and an upcoming IPO of its animal health business (partial) should be a bullish scenario going forward. This cash should go toward share buybacks and supporting its already strong 3.5% dividend yield. Solid long-run earnings growth is expected to come via Pfizer’s continued entry into emerging markets as a result of rising health standards, aggregately speaking. Billionaire Ken Fisher, founder of Fisher Asset Management, has Pfizer as his largest stock holding (check out Ken Fisher’s top picks).

Eli Lilly is another one of Tudor’s favorite pharma stocks; it was a near 1,000% increase for Tudor in 3Q, and pays a higher dividend yield than Pfizer at 4.1%. The big challenge for Eli Lilly has been countering the loss of revenue due to patent expiration of top drug Zyprexa. These challenges are likely to continue as Eli Lilly loses patent protection of Cymbalta (2013) and Evista (2014) over the next two years. These patent losses translate into an expected 4% annual decline in earnings over the next half-decade. Of the two pharma stocks mentioned here, we like Pfizer the best, given its growth prospects and operating margin superiority, 32% compared to Eli Lilly’s 20%. Jim Simons is one of Eli Lilly’s biggest backers among the hedge funds we track (check out Jim Simons’ latest picks).

To recap: Tudor is making some big bets in tech value opportunities, Intel and Dell, that could see interim pressure but could reward investors in the longer term assuming they can capitalize on a turnaround. Google, meanwhile, is a solid growth opportunity, owning the search market with a massive potential in mobile. Pfizer and Eli Lilly are two solid dividend-paying pharma stocks, but we see Pfizer as having the best long-term prospects.