Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.
Today, let’s look at Tudor Investment, founded in 1980 by Paul Tudor Jones and featuring the flagship Tudor BVI fund. Jones, featured in Jack Schwager’s Market Wizards: Interviews with Top Traders, was one of the few to foresee the 1987 market crash (and he made many millions on it as well). He’s known for focusing on short-term trading, equity, venture capital, debt, currency, and commodity markets.
The company’s reportable stock portfolio totaled $3.1 billion in value as of Dec. 31, 2012.
So what does Tudor Investment’s latest quarterly 13F filing tell us? Here are a few interesting details:
The biggest new holdings are Lowe’s and the SPDR Select Financial Sector ETF. Other new holdings of interest include Pitney Bowes Inc. (NYSE:PBI) and the iShares S&P U.S. Preferred Stock ETF. Despite what many people might think, Pitney Bowes Inc. (NYSE:PBI) is not just a postage-meter business. It is indeed in that business, which has been threatened by the growth of digital communications, but it’s also involved in other less-threatened and higher-margin businesses, such as providing geocoding software to Facebook Inc (NASDAQ:FB) and others. Its fourth-quarter results were stronger than expected, but though its single-digit P/E ratio may be enticing, it does carry some risks and considerable debt and its hefty 10% dividend may end up reduced. The stock is also heavily shorted.
The iShares ETF is appealing for its dividend yield of about 6%, and it’s a good way to diversify your portfolio by adding preferred stocks, which tend to yield more while offering less share-price appreciation. The ETF is heavily weighted in financial stocks, with about two-thirds of its assets in them, but those stocks have been rebounding since the credit crisis of several years ago.
Among holdings in which Tudor Investment increased its stake was semiconductor chip designer Cirrus Logic, Inc. (NASDAQ:CRUS), which has been growing briskly in large part due to having its chips in almost every iProduct. The company has handily topped earnings estimates and has offered robust projections as well. On top of that, with a P/E ratio around 10, it seems attractively priced. Still, it’s quite dependent on Apple Inc. (NASDAQ:AAPL), so if you’re not confident about Apple’s future, think twice about Cirrus Logic, Inc. (NASDAQ:CRUS), too.