In this article, we discuss the 10 stocks to buy according to billionaire Paul Tudor Jones. If you want to skip our detailed analysis of these stocks, go directly to the 5 Stocks to Buy According to Billionaire Paul Tudor Jones.
Paul Tudor Jones is the chief of Tudor Investment Corp, a hedge fund based in Boston that had a portfolio value of more than $6 billion at the end of the third quarter of 2021 with the top holdings concentrated in the services and technology sectors. Latest 13F data shows that the portfolio value of the fund increased by close to $1 billion between June and September. The hedge fund, during the period, made new purchases in 1,443 stocks, additional purchases in 429, sold out of 594, and reduced holdings in 442 equities.
Jones has a personal net worth of more than $7 billion and has helped Tudor Investment Corp become one of the most successful funds of the last four decades. He is famous for bets on interest rates and currencies, as well as short-term trading. Jones became famous in the finance world after accurately predicting the stock market crash of 1987 and making $100 million from the crisis. His fund returned over 125% that year. Jones dabbled in cotton futures as a young trader in New York.
Inflation fears at the market in recent months have brought the legendary value investing prowess of people like Jones in the limelight. According to a report by business news publication Business Insider, institutional investors have become skeptical of Federal Reserve claims that rising prices of everyday goods are a “transitory” phenomenon. Investment banks like JPMorgan have also started recommending that investment firms should seek the help of macro traders as interest rates rise.
Even though Jones is famous for his value investing insight, he has recently also outlined his bullish views on Bitcoin, the most popular cryptocurrency. In October this year, the billionaire investor told news platform CNBC that he thought that the crypto coin was a better hedge against inflation compared to gold. He also revealed that he had some crypto in his portfolio. The billionaire further noted that Bitcoin was a great way to protect wealth in the long-term. Jones said he preferred Bitcoin over ETFs as well.
Investors who want further exposure to the investments of the legendary investor should check out his latest portfolio in detail. Some of the top stocks in the portfolio of Tudor Investment Corp at the end of September included Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Airbnb, Inc. (NASDAQ:ABNB), among others discussed in detail below.
Our Methodology
The companies listed below were taken from the investment portfolio of Tudor Investment Corp at the end of the third quarter of 2021. Those that have a Price-to-Earnings (PE) ratio of around 15 were preferred for the list. The PE Ratio of each stock is mentioned alongside other details about the companies for further clarity.
Stocks to Buy According to Billionaire Paul Tudor Jones
10. Rockwell Automation, Inc. (NYSE:ROK)
Number of Hedge Fund Holders: 29
PE Ratio: 30.08
Rockwell Automation, Inc. (NYSE:ROK) provides industrial automation and digital transformation solutions. Latest data shows that Tudor Investment Corp owned 42,042 shares of Rockwell Automation, Inc. (NYSE:ROK) at the end of the third quarter of 2021 worth $12.3 million, representing 0.20% of the portfolio.
Rockwell Automation, Inc. (NYSE:ROK) posted earnings for the third quarter on November 2, reporting earnings per share of $2.33, beating estimates by $0.15. The revenue over the period was $1.8 billion, up over 15% year-on-year.
Among the hedge funds being tracked by Insider Monkey, London-based investment firm Impax Asset Management is a leading shareholder in Rockwell Automation, Inc. (NYSE:ROK) with 698,555 shares worth more than $205 million.
At the end of the third quarter of 2021, 29 hedge funds in the database of Insider Monkey held stakes worth $519 million in Rockwell Automation, Inc. (NYSE:ROK), up from 25 the preceding quarter worth $535 million.
Just like Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Airbnb, Inc. (NASDAQ:ABNB), Rockwell Automation, Inc. (NYSE:ROK) is one of the stocks that hedge funds are buying.
9. Citigroup Inc. (NYSE:C)
Number of Hedge Fund Holders: 79
PE Ratio: 5.96
Citigroup Inc. (NYSE:C) is a financial services company based in New York. According to regulatory filings, Tudor Investment Corp owned 180,578 shares in Citigroup Inc. (NYSE:C) at the end of September 2021 worth $12.6 million, representing 0.20% of the portfolio.
Crypto news platform CoinDesk recently reported that Citigroup Inc. (NYSE:C) was hiring more than 100 new workers to accelerate the development of the crypto and blockchain divisions of the company.
At the end of the third quarter of 2021, 79 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in Citigroup Inc. (NYSE:C), down from 87 the preceding quarter worth $6.1 billion.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Harris Associates is a leading shareholder in Citigroup Inc. (NYSE:C) with 28 million shares worth more than $1.9 billion.
In its Q1 2021 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Citigroup Inc. (NYSE:C) was one of them. Here is what the fund said:
“We fully exited position in Citigroup. Global financial services company Citigroup made a $900 million clerical error and received a public reprimand from federal regulators. This, after a decade focused on process control, information technology and risk systems, makes the error substantially more costly than just the $900 million mistake. Regulators believe the company’s risk management improvements have fallen short of expectations. To rectify the situation, a process and technology spending surge could negatively affect 2021-2022 profits by 10% to 20%. Trust and confidence are important in large financial institutions, and this incident combined with the CEO’s sudden retirement shook ours.”
8. PJT Partners Inc. (NYSE:PJT)
Number of Hedge Fund Holders: 21
PE Ratio: 17.72
PJT Partners Inc. (NYSE:PJT) provides investment banking and brokerage services. The hedge fund of Paul Tudor Jones owned 179,106 shares of PJT Partners Inc. (NYSE:PJT) at the end of the third quarter of 2021 worth more than $14.1 million, representing 0.23% of the total portfolio.
Keefe Bruyette analyst Michael Brown has a Market Perform rating on PJT Partners Inc. (NYSE:PJT) stock with a price target of $92. In a recent investor note, the analyst highlighted the potential of company-specific catalysts to drive upside for the shares in the coming months.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in PJT Partners Inc. (NYSE:PJT) with 437,217 shares worth more than $34 million.
At the end of the third quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $108 million in PJT Partners Inc. (NYSE:PJT), up from 19 the preceding quarter worth $79 million.
In addition to Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Airbnb, Inc. (NASDAQ:ABNB), hedge funds are paying attention to finance stocks like PJT.
7. Unum Group (NYSE:UNM)
Number of Hedge Fund Holders: 30
PE Ratio: 6.20
Unum Group (NYSE:UNM) provides life and health insurance solutions. Tudor Investment Corp owned 604,750 shares in Unum Group (NYSE:UNM) at the end of September 2021 worth $15.1 million, representing 0.24% of the portfolio of the fund.
Unum Group (NYSE:UNM) has a decent dividend history and recently declared a quarterly dividend of $0.30 per share, in line with previous. The forward yield was 4.36%. The firm has a market cap of over $4.8 billion.
At the end of the third quarter of 2021, 30 hedge funds in the database of Insider Monkey held stakes worth $350 million in Unum Group (NYSE:UNM), up from 23 in the preceding quarter worth $324 million.
Among the hedge funds being tracked by Insider Monkey, Boston-based investment firm Arrowstreet Capital is a leading shareholder in Unum Group (NYSE:UNM) with 4.5 million shares worth more than $115 million.
6. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 47
PE Ratio: 15.66
VICI Properties Inc. (NYSE:VICI) is a real estate investment trust that focuses on gaming and entertainment properties. At the end of the third quarter of 2021, Tudor Investment Corp owned 550,562 shares in VICI Properties Inc. (NYSE:VICI) worth $15.6 million, representing 0.25% of the portfolio.
CBRE analyst John DeCree recently resumed coverage of VICI Properties Inc. (NYSE:VICI) stock with a Buy rating and a price target of $35, noting that the domestic casino was expected to gather pace despite emergence of new virus variants.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Gates Capital Management is a leading shareholder in VICI Properties Inc. (NYSE:VICI) with 6.9 million shares worth more than $198 million.
At the end of the third quarter of 2021, 47 hedge funds in the database of Insider Monkey held stakes worth $1.3 billion in VICI Properties Inc. (NYSE:VICI), up from 37 in the preceding quarter worth $664 million.
Along with Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL), and Airbnb, Inc. (NASDAQ:ABNB), VICI Properties Inc. (NYSE:VICI) is one of the stocks on the radar of hedge funds.
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Disclosure. None. 10 Stocks to Buy According to Billionaire Paul Tudor Jones is originally published on Insider Monkey.
