In this article, we will take a look at 10 stocks to invest in according to billionaire Paul Tudor Jones.
Paul Tudor Jones is an American billionaire, philanthropist, hedge fund manager, and founder of an asset management firm, Tudor Investment Corp, founded in 1980. Today, the hedge fund has offices in Palm Beach, Connecticut, New York, London, Sydney, Singapore. Jones started his career as a commodities trader when he traded cotton futures at the New York Cotton Exchange. In 1988, he cofounded the Robin Hood Foundation, with the sole purpose of giving back to his community and eradicating poverty.
Tudor Investment Corp focuses on discretionary macro trading, quantitative trading, and investment on a global basis. The firm believes in continuous innovation in order to compete in evolving markets. Due to the distinguished strategies of Paul Tudor Jones, his fund has generated higher returns since its inception. In 1987, the fund delivered a 125.9% return after the U.S. stock market experienced the biggest downturn of history. In 1990, the fund gained 87.4% following the market crash in Japan. After reaping profits for a long time, the fund’s activity suffered between 2010-2012, when the returns averaged 5% annually. However, after 2013 Tudor Investment Corp made a comeback when the fund’s Tudor Momentum Fund gained 24.1% in 2018.
As of Q2 2021, Tudor Investment Corp is managing the 13F stock portfolio valued at over $5.2 billion. The top 10 holdings represent 18.66% of the whole portfolio. Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) is the largest hedge fund holding with shares worth $166.7 million.
In terms of weight, technology, healthcare, and consumer services remained the top three sectors. The fund’s increased activity in Nuance Communications, Inc. (NASDAQ: NUAN), Proofpoint, Inc. (NASDAQ: PFPT), and Xilinx, Inc. (NASDAQ: XLNX) exhibited its preference for the technology stocks. In the second quarter, the hedge fund also built a new position in PPD, Inc. (NASDAQ: PPD), a pharmaceutical research company.
Our Methodology:
The list has been curated by looking into Tudor Investment Corp’s 13F portfolio for the second quarter of 2021. We picked the top 10 holdings of Jones’ Q2 portfolio.
Why pay attention to hedge fund sentiment while choosing stocks?
Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
10 Stocks to Invest in According to Billionaire Paul Tudor Jones
10. Xilinx, Inc. (NASDAQ: XLNX)
Tudor Investment Corp’s Stake Value: $68,040,000
Percent of Tudor Investment Corp’s 13F Portfolio: 1.28%
Number of Hedge Fund Holders: 59
Xilinx, Inc. (NASDAQ: XLNX) is an American technology and semiconductor company that develops computing platforms that can be used in the cloud and other variety of technologies. The company was founded in 1984 and is headquartered in California, U.S. Xilinx, Inc. (NASDAQ: XLNX) ranks tenth on our list of the best stocks to invest in according to billionaire Paul Tudor Jones.
Tudor Investment Corp holds 470,406 shares in Xilinx, Inc. (NASDAQ: XLNX), worth over $68 million. The company accounts for 1.28% of the hedge fund’s 13F portfolio. In fiscal first quarter 2022, Xilinx, Inc. (NASDAQ: XLNX) posted a revenue of $879 million, up 21% from the prior-year period. The EPS of $0.95 beat the market consensus by $0.12. Recently, Barclays raised its price target on Xilinx, Inc. (NASDAQ: XLNX) to $165, with an ‘Equal Weight’ rating on the shares. In the past year, Xilinx, Inc. (NASDAQ: XLNX) has delivered a 40.7% return to shareholders, while its 6-month gains are 10.6%.
As of Q2 2021, 59 hedge funds tracked by Insider Monkey have positions in Xilinx, Inc. (NASDAQ: XLNX), up from 57 in the previous quarter. The total worth of these stakes is $4.16 billion.
9. IHS Markit Ltd. (NYSE: INFO)
Tudor Investment Corp’s Stake Value: $68,999,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.3%
Number of Hedge Fund Holders: 61
IHS Markit Ltd. (NYSE: INFO) is a global leader in information and analytics, providing services and solutions to the major industries. The company operates in business, finance, and government sectors to improve their operational efficiency. IHS Markit Ltd. (NYSE: INFO) stands ninth on our list of the best stocks to invest in according to billionaire Paul Tudor Jones.
Tudor Investment Corp has 612,451 shares in IHS Markit Ltd. (NYSE: INFO), worth approximately $69 million. The company accounts for 1.3% of the hedge fund’s 13F portfolio. In Q2 2021, IHS Markit Ltd. (NYSE: INFO) reported an EPS of $0.81, beating the market consensus by $0.01. The revenue for the quarter stood at $1.8 billion, up from $1.02 billion during the same period last year. The company also declared a quarterly dividend of $0.20 per share. In July, Deutsche Bank lifted its price target on IHS Markit Ltd. (NYSE: INFO) to $127, with a ‘Buy’ rating on the shares. The stock has gained 44.1% in the past year and 32% in the last 6 months.
Of the 873 hedge funds tracked by Insider Monkey, 61 funds have positions in IHS Markit Ltd. (NYSE: INFO) in Q2 2021, compared with 54 hedge funds in the previous quarter. These stakes are valued at $5.94 billion.
Like Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), Nuance Communications, Inc. (NASDAQ: NUAN), PPD, Inc. (NASDAQ: PPD), Materials Select Sector SPDR Fund (NYSE: XLB), and Navistar International Corporation (NYSE: NAV), IHS Markit Ltd. (NYSE: INFO) is one the best stocks to invest in according to billionaire Paul Tudor Jones.
8. Proofpoint, Inc. (NASDAQ: PFPT)
Tudor Investment Corp’s Stake Value: $80,035,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.51%
Number of Hedge Fund Holders: 48
California-based Proofpoint, Inc. (NASDAQ: PFPT) is an enterprise security company that provides services in software and cybersecurity. Over half of the Fortune 1000 companies rely on Proofpoint, Inc. (NASDAQ: PFPT) to make their data more resilient against cyber-attacks.
Tudor Investment Corp holds 460,605 shares in Proofpoint, Inc. (NASDAQ: PFPT), worth over $80 million, accounting for 1.51% of the fund’s 13F portfolio. The hedge fund increased its position in the company by 1471%. In Q2 2021, Proofpoint, Inc. (NASDAQ: PFPT) posted an EPS of $0.63, beating the market consensus by $0.15. The consolidated revenue of $308.7 million presented a 19% year-over-year growth. Since the beginning of the year, Proofpoint, Inc. (NASDAQ: PFPT) has delivered a 31.8% return to shareholders, while its 12-month returns are up by 56.6%.
As of Q2 2021, we see that hedge funds are turning bullish towards Proofpoint, Inc. (NASDAQ: PFPT) as 48 funds have positions in the company, compared with 22 in the previous quarter. The total value of these stakes is over $2.59 billion.
Like Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), Nuance Communications, Inc. (NASDAQ: NUAN), PPD, Inc. (NASDAQ: PPD), Materials Select Sector SPDR Fund (NYSE: XLB), and Navistar International Corporation (NYSE: NAV), Proofpoint, Inc. (NASDAQ: PFPT) is one the best stocks to invest in according to billionaire Paul Tudor Jones.
7. Just Eat Takeaway.com N.V. (NASDAQ: GRUB)
Tudor Investment Corp’s Stake Value: $82,669,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.56%
Number of Hedge Fund Holders: 24
Just Eat Takeaway.com N.V. (NASDAQ: GRUB) is a Dutch company that offers services in online food ordering and home delivery. The company operates as an intermediary between the customers and the restaurants.
Tudor Investment Corp holds over 4.5 million shares in Just Eat Takeaway.com N.V. (NASDAQ: GRUB), worth $82.66 million. The company is the latest acquisition of the hedge fund and accounts for 1.56% of its 13F portfolio. In June, Just Eat Takeaway.com N.V. (NASDAQ: GRUB) completed its acquisition of a Chicago-based digital food delivery platform, Grubhub, in a $7.3 billion deal. Recently, Goldman Sachs reinstated its coverage on Just Eat Takeaway.com N.V. (NASDAQ: GRUB) with a ‘Buy’ rating and a 130 euro price target.
As of Q2 2021, 24 hedge funds tracked by Insider Monkey have positions in Just Eat Takeaway.com N.V. (NASDAQ: GRUB), worth $60.9 million.
Like Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), Nuance Communications, Inc. (NASDAQ: NUAN), PPD, Inc. (NASDAQ: PPD), Materials Select Sector SPDR Fund (NYSE: XLB), and Navistar International Corporation (NYSE: NAV), Just Eat Takeaway.com N.V. (NASDAQ: GRUB) is one the best stocks to invest in according to billionaire Paul Tudor Jones.
6. Liberty Broadband Corporation (NASDAQ: LBRDK)
Tudor Investment Corp’s Stake Value: $87,110,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.64%
Number of Hedge Fund Holders: 63
Liberty Broadband Corporation (NASDAQ: LBRDK) is a holding company that engages in the cable, broadband, and mobile technology businesses. The company’s subsidiaries include Charter Communications, Inc., and True Positions, Inc. Liberty Broadband Corporation (NASDAQ: LBRDK) stands sixth on our list of the best stocks to invest in according to billionaire Paul Tudor Jones.
Paul Jones’ Tudor Investment Corp has 501,612 shares in Liberty Broadband Corporation (NASDAQ: LBRDK), worth $87.1 million. The company accounts for 1.64% of the hedge fund’s 13F portfolio as the fund has increased its activity by 10% in the company in Q2. Liberty Broadband Corporation (NASDAQ: LBRDK) posted significant growth in revenue at $242.8 million in Q2 2021, up from $4.1 million during the same period last year. Recently, Pivotal Research lifted its price target on Liberty Broadband Corporation (NASDAQ: LBRDK) to $267, with a ‘Buy’ rating on the shares. The stock gained 31.3% in the past year and 26.5% in the past 6 months.
Of the 873 hedge funds tracked by Insider Monkey, 63 hedge funds have positions in Liberty Broadband Corporation (NASDAQ: LBRDK), worth $7.38 billion.
Like Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), Nuance Communications, Inc. (NASDAQ: NUAN), PPD, Inc. (NASDAQ: PPD), Materials Select Sector SPDR Fund (NYSE: XLB), and Navistar International Corporation (NYSE: NAV), Liberty Broadband Corporation (NASDAQ: LBRDK) is one the best stocks to invest in according to billionaire Paul Tudor Jones.
Alphyn Capital Management released its Q1 2021 investor letter and mentioned Liberty Broadband Corporation (NASDAQ: LBRDK) in it. Here is what the firm has to say:
“Liberty Broadband completed its merger with GCI, thereby collapsing one layer of the double discount to Charter Communications, presenting a good opportunity to trim that position as well.”
5. Navistar International Corporation (NYSE: NAV)
Tudor Investment Corp’s Stake Value: $89,601,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.69%
Number of Hedge Fund Holders: 22
Navistar International Corporation (NYSE: NAV) is an American holding company that, along with its subsidiaries, produces commercial trucks and buses, diesel engines, and buses under the IC Bus brand. On July 1, Navistar International Corporation (NYSE: NAV) became a wholly-owned subsidiary of Traton Group, and therefore part of the Volkswagen Group.
Tudor Investment Corp holds over 2 million shares in Navistar International Corporation (NYSE: NAV), worth $89.6 million. The hedge fund increased its activity in the company by 28% in the second quarter. Navistar International Corporation (NYSE: NAV) accounts for 1.69% of the fund’s 13F portfolio. in Q2 2021, Navistar International Corporation (NYSE: NAV) posted revenue of $2.2 billion, up from $1.9 billion during the same period last year.
As of Q2 2021, 22 hedge funds tracked by Insider Monkey have positions in Navistar International Corporation (NYSE: NAV), up from 21 in the previous quarter. The total value of these stakes is over $1.36 billion.
4. Materials Select Sector SPDR Fund (NYSE: XLB)
Tudor Investment Corp’s Stake Value: $92,867,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.75%
Number of Hedge Fund Holders: 18
Materials Select Sector SPDR Fund (NYSE: XLB) is an exchange-traded fund managed by SSGA Funds Management, Inc. The fund mainly focuses on the price and yield performance of the material sector of the U.S.
Tudor Investment Corp holds over 2.5 million shares in Materials Select Sector SPDR Fund (NYSE: XLB), worth $92.8 million. The exchange-traded fund accounts for 1.75% of the hedge fund’s 13F portfolio. Since the beginning of the year, Materials Select Sector SPDR Fund (NYSE: XLB) has delivered a 16.8% return to shareholders, while its 12-month returns are up by 33.03%.
As of Q2 2021, 18 hedge funds tracked by Insider Monkey have positions in Materials Select Sector SPDR Fund (NYSE: XLB), up from 16 in the previous quarter.
3. PPD, Inc. (NASDAQ: PPD)
Tudor Investment Corp’s Stake Value: $115,323,000
Percent of Tudor Investment Corp’s 13F Portfolio: 2.17%
Number of Hedge Fund Holders: 37
Pharmaceutical Product Development, commonly known as PPD, Inc. (NASDAQ: PPD) is a contract research organization that provides services in integrated drug development, laboratory, and lifecycle management.
Tudor Investment Corp has over 2.5 million shares in PPD, Inc. (NASDAQ: PPD), worth $115.3 million. The stock is one of the newest acquisitions of the hedge fund and accounts for 2.15% of its 13F portfolio. In Q2 2021, PPD, Inc. (NASDAQ: PPD) reported an EPS of $0.39, beating the consensus by $0.04. The company’s revenue stood at $1.56 billion, presenting a 55.8% year-over-year growth. In April, JPMorgan lifted its price target on PPD, Inc. (NASDAQ: PPD) to $48. Since the beginning of the year. The stock has delivered a 34.4% return to shareholders, while its 12-month returns are up by 39.5%.
As of Q2 2021, 37 hedge funds have positions in PPD, Inc. (NASDAQ: PPD), up from 29 in the previous quarter. The total value of these stakes is over $1.9 billion.
DEVON Equity Management recently published its second-quarter 2021 investor letter and mentioned PPD, Inc. (NASDAQ: PPD) in it. Here is what the firm has to say:
“…We expect the ~US$4bn of ‘excess’ free cash flow generated from COVID related business to be reinvested into high returning businesses with a more sustainable earnings profile. This is already evident in Thermo’s strong M&A activity YTD, culminating in the US$20bn acquisition of PPD (PPD US).
PPD is a top tier CRO (Contract Research Organisation) which has been in and out of private equity ownership in recent times. To oversimplify, CRO’s effectively provide ‘outsourced’ R&D services across the entire customer spectrum (from big pharma to early stage biotech). Their value proposition varies slightly be customer, but ultimately comes down to quality of drug discovery / development and accelerating time to market (i.e. ‘Return on R&D investment’). CROs must stack up well on this metric vs in-house R&D spend, otherwise Firms would simply keep the spend 100% internal.”
2. Nuance Communications, Inc. (NASDAQ: NUAN)
Tudor Investment’s Corp Stake Value: $138,449,000
Percent of Tudor Investment Corp’s 13F Portfolio: 2.61%
Number of Hedge Fund Holders: 72
Nuance Communications, Inc. (NASDAQ: NUAN) is an American computer software company that specializes in speech recognition and AI software. Over 10k healthcare organizations worldwide use Nuance Communications, Inc. (NASDAQ: NUAN). It stands second on our list of the best stocks to invest in according to billionaire Paul Tudor Jones.
Tudor Investment Corp holds over 2.5 million shares of Nuance Communications, Inc. (NASDAQ: NUAN), worth $138.4 million. In Q2, the fund increased its position in the company by 6674% and it constitutes 2.61% of the fund’s 13F portfolio. In Q3 2021, Nuance Communications, Inc. (NASDAQ: NUAN) reported an EPS of $0.16 and revenue of $336.6 million, up from 298.6 million during the same period last year. On April 12, the company has entered into an agreement with Microsoft Corporation (NASDAQ: MSFT) to combine solutions to deliver new cloud and AI capabilities across the healthcare industry. Nuance Communications, Inc. (NASDAQ: NUAN) has gained 88.11% in the past year.
In May, JPMorgan lifted its price target on Nuance Communications, Inc. (NASDAQ: NUAN) to $56, with an ‘Equal Weight’ rating on the shares. The number of hedge funds having stakes in Nuance Communications, Inc. (NASDAQ: NUAN) also increased as 72 funds have positions in the company as of Q2 2021, up from 57 in the previous quarter. The total value of these stakes in over $5.5 billion.
ClearBridge Investments recently released its Q2 2021 investor letter and mentioned Nuance Communications, Inc. (NASDAQ: NUAN) in it. Here is what the firm has to say:
“In general, improving growth companies are taking specific actions to enhance their growth profiles going forward, whether through a restructuring, business model change, new management team or more productive use of assets. Another recent example is Nuance Communications, which was simplified and reorganized under new leadership in 2018 and subsequently acquired by Microsoft for a significant premium this quarter. This continues the Strategy’s long track record of positioning successfully to benefit from consolidation, with more than 80 companies having been acquired since inception.”
1. Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN)
Tudor Investment Corp’s Stake Value: $166,782,000
Percent of Tudor Investment Corp’s 13F Portfolio: 3.15%
Number of Hedge Fund Holders: 69
Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) is an American pharmaceutical company that focuses on patients affected by rare diseases. On July 6, AstraZeneca PLC (NASDAQ: AZN) received approval from the European Commission for its acquisition of the company in a $39 billion deal. The new unit is named ‘Alexion, AstraZeneca Rare Disease’ and is based in Boston, U.S.
Tudor Investment Corp holds 907,855 shares in Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), worth over $166.7 million. The company represents 3.15% of the fund’s portfolio. In the second quarter of 2021, Tudor Investment Corp increased its activity in Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) by 73%. The company’s acquisition by AstraZeneca PLC (NASDAQ: AZN) marks its entry into medicines for rare diseases, especially conditions involving immune systems. In May, Oppenheimer upgraded Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) to ‘Outperform’, with a $250 price target.
As of Q2 2021, 69 hedge funds have positions in Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), worth over $10 billion.
You can also take a look at 10 Best Dividend Aristocrats to Buy According to Hedge Funds and 10 Best Dividend Stocks to Buy According to John Khoury’s Long Pond Capital
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Disclosure. None. 10 Stocks to Invest in According to Billionaire Paul Tudor Jones is originally published on Insider Monkey.
