In this article, we discuss 10 best stocks to buy in 2022 according to billionaire Paul Tudor Jones.
Paul Tudor Jones, hedge fund legend and chief of Tudor Investment Corp, is known for his investing and financial prowess. He has gone on record to say that companies running on the back of shareholder capitalism alone are not the most successful now. Profitability is not the most important metric when choosing stocks to invest in, according to Jones, who believes firmly in the significance of the ESG approach and workforce of the companies he invests in.
Billionaire Paul Tudor Jones finds the current market to be a dismal place in terms of investments, stating that if he absolutely had to choose a stock picking method, he would prefer basic trend-following strategies. This means buying securities when their prices shoot up and selling when the prices are down. In this rising rates environment, capital preservation should be the only end goal, according to Jones.
Tudor Investment Corp’s Q1 2022 portfolio is worth $4.2 billion, compared to almost $6 billion in the preceding quarter. Some of the most notable stocks held by the billionaire included Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Costco Wholesale Corporation (NASDAQ:COST).
Our Methodology
We used the Q1 2022 portfolio of billionaire Paul Tudor Jones for this analysis, selecting the top 10 stock picks of his hedge fund.
Best Stocks to Buy in 2022 According to Billionaire Paul Tudor Jones
10. Hasbro, Inc. (NASDAQ:HAS)
Tudor Investment Corp’s Stake Value: $18,443,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.43%
Number of Hedge Fund Holders: 38
Hasbro, Inc. (NASDAQ:HAS) is an American gaming and entertainment company based in Rhode Island. In the first quarter of 2022, Paul Tudor Jones reported owning 225,132 shares of Hasbro, Inc. (NASDAQ:HAS) worth $18.4 million, representing 0.43% of the total 13F securities.
On April 19, Hasbro, Inc. (NASDAQ:HAS) posted its Q1 financial results, announcing earnings per share of $0.57, falling short of analysts’ predictions by $0.07. The revenue jumped 4.33% year-over-year to $1.16 billion, topping Street forecasts by $6.24 million. The company declared on May 19 a $0.70 per share quarterly dividend, in line with previous. The dividend is distributable on August 15, to shareholders of the company at the close of business on August 1. Hasbro, Inc. (NASDAQ:HAS) delivers as of May 24 a dividend yield of 3.39%.
DA Davidson analyst Linda Bolton Weiser on April 20 raised the price target on Hasbro, Inc. (NASDAQ:HAS) to $128 from $121 and maintained a Buy rating on the shares. The analyst cited Hasbro, Inc. (NASDAQ:HAS)’s “modest” Q1 upside and reaffirmed its FY22 sales guidance despite greater negative FX and the likely loss of sales in Russia. The analyst further pointed to Hasbro, Inc. (NASDAQ:HAS) having lifted its 2022 operating margin guidance to 16% compared to 15.5% in 2021.
Among the hedge funds tracked by Insider Monkey, 38 funds were bullish on Hasbro, Inc. (NASDAQ:HAS) at the end of March 2022, compared to 22 funds in the preceding quarter. In Q1, Connor Haley’s Alta Fox Capital Management was the leading shareholder of the company, with a position worth about $296 million.
9. Turquoise Hill Resources Ltd. (NYSE:TRQ)
Tudor Investment Corp’s Stake Value: $20,742,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.48%
Number of Hedge Fund Holders: 21
Turquoise Hill Resources Ltd. (NYSE:TRQ) is a Canadian mining company that explores for copper, gold, and silver deposits. Billionaire Paul Tudor Jones boosted his Turquoise Hill Resources Ltd. (NYSE:TRQ) stake in Q1 2022 by 9%, holding 690,472 shares worth $20.7 million, representing 0.48% of the total 13F securities.
On May 10, Turquoise Hill Resources Ltd. (NYSE:TRQ) reported its Q1 financial results, announcing earnings per share of $1.37, beating market estimates by $1.04. The revenue of $402.65 million outperformed analysts’ predictions by $24.28 million.
Scotiabank analyst Orest Wowkodaw on May 12 upgraded Turquoise Hill Resources Ltd. (NYSE:TRQ) to Outperform from Sector Perform, raising the price target to C$44 from C$43. The analyst sees a “significantly more attractive” risk/reward profile after Turquoise Hill Resources Ltd. (NYSE:TRQ)’s less than expected preliminary Phase II capex and the recent drop in the share price due to the market backdrop. Turquoise Hill Resources Ltd. (NYSE:TRQ) also has continued share price support from the proposed arrangement by Rio Tinto at C$34.00 per share, contended the analyst, who added that a “markedly higher” offer price will be needed to convince minority shareholders to tender.
Among the hedge funds tracked by Insider Monkey, 21 funds were long Turquoise Hill Resources Ltd. (NYSE:TRQ) at the end of March 2022, up from 12 funds in the last quarter. In Q1 2022, Matthew Halbower’s Pentwater Capital Management was the biggest shareholder of the company, with 18.8 million shares worth $565.5 million.
In addition to Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Costco Wholesale Corporation (NASDAQ:COST), Turquoise Hill Resources Ltd. (NYSE:TRQ) is a notable holding of billionaire Paul Tudor Jones.
Here is what Massif Capital has to say about Turquoise Hill Resources Ltd. (NYSE:TRQ) in its Q4 2020 investor letter:
“Turquoise Hill remains a challenging company to evaluate and a problematic company to manage within our portfolio. The company holds rights to a world-class asset, but one with very different characteristics than Ivanhoe’s Kamoa Kakula. Kamoa is a flat, low depth, high-grade block of copper ore that is relatively easy to mine. Turquoise Hill’s OT mine is a deep underground mine with good grades and high tonnage, but it is very challenging to monetize. The planned extraction method, block cave mining, is still a relatively new approach to mining an asset in the grand scheme of things. The scale of the OT mine exacerbates the challenge. Management challenges compound technical risks. Rio-Tinto (the mine operator and developer via a 51% stake in Turquoise Hill) and Turquoise Hill seem to always be at odds with each other, and both parties seem to always be at odds with the Mongolian Government.
Although we have spent significant time underwriting the technical, managerial, and political risks associated with the investment, we are continuously surprised by how frequently issues occur for this company. With that in mind, we constructed a collar on the position during the fourth quarter, selling call options for January 2022 at a $20 strike and using the proceeds to buy January 2022 puts on the position at a $7 strike. This will allow us to confidently hold the position in the near term, knowing we have locked in a gain of at least 50% from our purchase price while still allowing for significant potential price appreciation from the current $12 price.”
8. B. Riley Financial, Inc. (NASDAQ:RILY)
Tudor Investment Corp’s Stake Value: $21,812,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.51%
Number of Hedge Fund Holders: 21
Riley Financial, Inc. (NASDAQ:RILY) is a California-based investment banking and financial services company that serves corporate, institutional, and high net worth clients in North America, Australia, and Europe. Tudor Investment Corp owned 311,785 B. Riley Financial, Inc. (NASDAQ:RILY) shares in the first quarter of 2022, worth $21.8 million, representing 0.51% of the total 13F portfolio.
On April 28, B. Riley Financial, Inc. (NASDAQ:RILY) declared a $1.00 per share quarterly dividend, in line with previous. The dividend was paid to shareholders on May 20. The company delivered on May 23 a 7.95% dividend yield. The company also posted a Q1 GAAP loss per share of $0.43 and a revenue of $205.6 million, down 38.3% on a year-over-year basis.
According to Insider Monkey’s Q1 database, B. Riley Financial, Inc. (NASDAQ:RILY) was part of 21 hedge fund portfolios, compared to 24 funds in the last quarter. In the first quarter of 2022, Chuck Royce’s Royce & Associates disclosed a notable stake in the company, comprising 428,691 shares worth about $30 million.
7. DigitalOcean Holdings, Inc. (NYSE:DOCN)
Tudor Investment Corp’s Stake Value: $27,480,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.64%
Number of Hedge Fund Holders: 26
Headquartered in New York, DigitalOcean Holdings, Inc. (NYSE:DOCN) is a tech firm that offers cloud-based infrastructure and tools for developers, start-ups, and small and medium sized businesses. In Q1 2022, Paul Tudor Jones held 475,017 shares of DigitalOcean Holdings, Inc. (NYSE:DOCN) worth $27.4 million, representing 0.64% of the total portfolio.
DigitalOcean Holdings, Inc. (NYSE:DOCN) reported its Q1 results on May 4, posting earnings per share of $0.07, missing market estimates by $0.05. The revenue grew about 36% compared to the prior-year quarter to $127.33 million, outperforming analysts’ predictions by $1.11 million.
On May 12, Goldman Sachs analyst Gabriela Borges initiated coverage of DigitalOcean Holdings, Inc. (NYSE:DOCN) with a Buy rating and a $49 price target, implying 59% upside. The analyst views DigitalOcean Holdings, Inc. (NYSE:DOCN) as a “clear leader” in the cloud infrastructure space for small to mid-sized businesses and individual developers. In an upside scenario, the analyst believes that the company could post $1 billion of revenue in 2024 and $200 million in free cash flow. She added that positive free cash flow paired with acquisition “optionality” should offer valuation support for the stock in the current market backdrop.
According to Insider Monkey’s Q1 data, 26 hedge funds were bullish on DigitalOcean Holdings, Inc. (NYSE:DOCN), compared to 25 funds in the earlier quarter. In the first quarter of 2022, Jeffrey Hoffner’s Engle Capital reported a leading stake in the company, comprising 800,000 shares valued at $46.28 million.
6. Liberty Broadband Corporation (NASDAQ:LBRDA)
Tudor Investment Corp’s Stake Value: $42,763,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 1.00%
Number of Hedge Fund Holders: 26
Liberty Broadband Corporation (NASDAQ:LBRDA) was incorporated in 2014 and is based in Englewood, Colorado, engaged in the communications businesses. Paul Tudor Jones’ Q1 filings disclosed that his hedge fund owned 316,012 Liberty Broadband Corporation (NASDAQ:LBRDA) shares, worth $42.7 million, representing 1.0% of the total 13F securities.
On May 6, Liberty Broadband Corporation (NASDAQ:LBRDA) reported a Q1 GAAP EPS of $1.77, beating analysts’ predictions by $0.28. The revenue of $238 million slipped 3.6% year-over-year, missing estimates by $8.84 million. Deutsche Bank analyst Bryan Kraft on May 10 maintained a Buy recommendation on Liberty Broadband Corporation (NASDAQ:LBRDA) but lowered the price target on the shares to $158 from $196 after the Q1 results.
Among the hedge funds tracked by Insider Monkey, 26 funds were bullish on Liberty Broadband Corporation (NASDAQ:LBRDA) at the end of Q1 2022, up from 22 funds in the preceding quarter. In Q1, Boykin Curry’s Eagle Capital Management held the biggest stake in the company, with 8.3 million shares worth $1.13 billion.
Like Amazon.com, Inc. (NASDAQ:AMZN), Apple Inc. (NASDAQ:AAPL), and Costco Wholesale Corporation (NASDAQ:COST), elite hedge funds are pouring into Liberty Broadband Corporation (NASDAQ:LBRDA).
Here is what Alphyn Capital Management has to say about Liberty Broadband Corporation (NASDAQ:LBRDA) in its Q1 2022 investor letter:
“We part-financed the additions to Amazon and Wayfair by trimming some Liberty Broadband. Liberty Broadband is a HoldCo and tracking stock whose primary holding is Charter Communications. Charter benefits from its extensive network of cable assets that can provide higher bandwidth internet at better prices than offerings from traditional telecom and satellite carriers. Moreover, with excellent management and capital stewardship, Charter has increased its high-margin broadband subscriber base despite losing some video subscribers to “cord-cutting.”
Nevertheless, competition is intensifying, with telecom companies launching aggressive Fiber-To-The-Home upgrade plans and new entrants emerging with Fixed Wireless technologies. Cable’s coaxial lines are, for once, the inferior technology compared to FTTH. While Charter has many ways to upgrade its lines to remain competitive in the medium term, it no longer has a distinct advantage. As a result, in markets with fiber competition, cable companies typically have a 50% market share vs. the 80% market share they enjoy without fiber competition.
With Fixed Wireless, Cable has a strong advantage in owning the network for internet backhaul, but it is more difficult to predict the longer-term competitive environment. In both cases, moving from a near-monopoly to a duopoly, or longer-term an oligopoly, likely comes with weaker pricing power and slower subscriber growth. These considerations warranted trimming our Liberty Broadband position, and we will monitor developments closely.”
5. Starz Acquisition Llc (NASDAQ:STRZA)
Tudor Investment Corp’s Stake Value: $43,718,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 1.02%
Number of Hedge Fund Holders: N/A
Lions Gate Entertainment Corp. (NYSE:LGF-A) in 2016 acquired Starz Acquisition Llc (NASDAQ:STRZA), an entertainment and media company. In the first fiscal quarter of 2022, billionaire Paul Tudor Jones’ Tudor Investment Corp boosted its stake in Starz Acquisition Llc (NASDAQ:STRZA) by 19%, holding 956,000 shares worth $43.7 million.
In Q1 2022, Warren Buffett’s Berkshire Hathaway reported owning 43.20 million shares of Starz Acquisition Llc (NASDAQ:STRZA), worth about $2 billion. Warren Buffett’s hedge fund is the leading shareholder of the company.
4. American National Group, Inc. (NASDAQ:ANAT)
Tudor Investment Corp’s Stake Value: $44,015,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 1.03%
Number of Hedge Fund Holders: 21
American National Group, Inc. (NASDAQ:ANAT) is a Texas-based provider of insurance, annuities, and pension products in the United States, the District of Columbia, and Puerto Rico. The company announced a Q1 non-GAAP EPS of $2.97 on May 4. Paul Tudor Jones revealed a $44 million stake in the company as of Q1 2022, representing 1.03% of the total 13F investments.
According to Insider Monkey’s Q1 database, 21 hedge funds held positions in American National Group, Inc. (NASDAQ:ANAT), with collective stakes worth $262 million, compared to 23 funds in the earlier quarter, holding stakes in the company valued at $177.8 million. In the first quarter of 2022, Israel Englander’s Millennium Management disclosed a leading stake in American National Group, Inc. (NASDAQ:ANAT), comprising 251,527 shares worth $47.5 million.
3. Airbnb, Inc. (NASDAQ:ABNB)
Tudor Investment Corp’s Stake Value: $47,427,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 1.11%
Number of Hedge Fund Holders: 66
Airbnb, Inc. (NASDAQ:ABNB) is a California-based travel technology company that offers vacation rentals and experiences to guests worldwide. Tudor Investment Corp increased its Airbnb, Inc. (NASDAQ:ABNB) stake by 3% in Q1, holding 276,124 shares worth $47.4 million. It is one of the best stocks to buy in 2022 according to billionaire Paul Tudor Jones.
On May 11, Baird analyst Colin Sebastian reiterated an Outperform rating and a price target of $210 on Airbnb, Inc. (NASDAQ:ABNB) shares. He believes that recent customer-focused changes announced by the company have the ability to boost traffic and conversion rates on the app and website. The analyst believes the improvements to the application and platform are another step in the right direction, in order to increase use cases and expand market share. With AirCover for guests, Airbnb, Inc. (NASDAQ:ABNB) should be more attractive for users who are reluctant to book vacation rentals, he added.
Among the hedge funds tracked by Insider Monkey, 66 funds were bullish on Airbnb, Inc. (NASDAQ:ABNB) at the end of Q1 2022, up from 63 funds in the last quarter. Jim Simons’ Renaissance Technologies reported a prominent position in the company, consisting of 3.40 million shares worth $584.6 million.
Here is what Tollymore Investment Partners has to say about Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2021 investor letter:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimizing externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
2. Anaplan, Inc. (NYSE:PLAN)
Tudor Investment Corp’s Stake Value: $89,236,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 2.08%
Number of Hedge Fund Holders: 47
Anaplan, Inc. (NYSE:PLAN) is an American cloud-based planning platform that enables organizations and users to connect remotely. The platform is used by the banking, capital markets, consumer products, healthcare, insurance, life sciences, media, professional services, retail, technology, telecom, and transportation industries in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.
Securities filings for Q1 2022 reveal that billionaire Paul Tudor Jones’ Tudor Investment Corp boosted its Anaplan, Inc. (NYSE:PLAN) stake by 4692%, holding 1.3 million shares worth $89.2 million, representing 2.08% of the total 13F securities.
On May 2, JMP Securities analyst Patrick Walravens downgraded Anaplan, Inc. (NYSE:PLAN) to Market Perform from Outperform without a price target. Thoma Bravo, an American private equity firm, agreed to acquire the company for $66 per share.
According to the Q1 2022 database of Insider Monkey, 47 hedge funds held long positions in Anaplan, Inc. (NYSE:PLAN), with collective stakes amounting to $2.4 billion. Sculptor Capital held the largest stake in the company in the first quarter of 2022, with 5.30 million shares worth $344.8 million.
Here is what Alger Mid Cap Focus Fund has to say about Anaplan, Inc. (NYSE:PLAN) in their Q1 2021 investor letter:
“Anaplan, Inc. was among the top detractors from performance. Anaplan is a leading provider of cloud-based business planning software. Anaplan’s software platform aims to solve the most complex planning needs of large global enterprises across various business lines. Unlike traditional business planning software, which is often rigid, siloed and opaque, Anaplan’s platform is designed to enable broader enterprise participation and better workforce collaboration during the business planning process. Through better planning, large enterprises can more effectively allocate resources to cut costs and generate revenue. Today Anaplan has over 1,600 customers across a variety of end markets and business use cases.
Anaplan shares underperformed in the first quarter as part of a broader sector rotation as high-growth software stocks fell out of favor relative to more cyclically exposed investment opportunities. We believe Anaplan’s focus on growth over near-term profit generation negatively impacts the company’s stock in a rising interest rate environment.
Fundamentally, Anaplan had strong fourth quarter earnings result, with the company seeing an acceleration of billings growth and a strong demand pipeline as companies realize the need for a more flexible digital planning solution.”
1. Cerner Corporation (NASDAQ:CERN)
Tudor Investment Corp’s Stake Value: $102,502,000
Percentage of Tudor Investment Corp’s 13F Portfolio: 2.40%
Number of Hedge Fund Holders: 64
Cerner Corporation (NASDAQ:CERN) provides healthcare information technology solutions in the United States and internationally. Paul Tudor Jones boosted his Cerner Corporation (NASDAQ:CERN) stake by 522% in Q1 2022, holding a total of 1.09 million shares worth $102.5 million, representing 2.40% of the overall portfolio. Cerner Corporation (NASDAQ:CERN) is the largest holding in Tudor Investment Corp’s portfolio.
Cerner Corporation (NASDAQ:CERN) posted Q1 financial results on May 3, reporting an EPS of $0.89, beating estimates by $0.02. The $1.43 billion revenue, however, fell short of analysts’ estimates by $42.21 million.
Oracle Corporation (NYSE:ORCL) plans to purchase Cerner Corporation (NASDAQ:CERN) for $28 billion and a petition has been filed with the European Commission, with a provisional deadline of June 1. Argus analyst Jasper Hellweg on April 11 downgraded Cerner Corporation (NASDAQ:CERN) to Hold from Buy.
According to Insider Monkey’s Q1 data, 64 hedge funds were bullish on Cerner Corporation (NASDAQ:CERN), up from 61 funds in the prior quarter. In the first quarter of 2022, John Overdeck and David Siegel’s Two Sigma Advisors reported owning 4.35 million shares of Cerner Corporation (NASDAQ:CERN), worth $407 million.
Here is what Cooper Investors Global Equities Fund (Hedged) has to say about Cerner Corporation (NASDAQ:CERN) in their Q1 2021 investor letter:
“The investment in Cerner, made just over a year ago, was based on what we perceived to be a Low-Risk Turnaround opportunity as a refreshed management team sought to increase margins, reduce capex and utilize balance sheet latency with buybacks and acquisitions. Taking account of the tough 2020 for Cerner’s hospital client base the company did a reasonable job executing on these initiatives. However, moving into 2021 more recent observations around intentionality and focus led to a reassessment of the investment proposition, particularly relative to the portfolio’s other technology and software investments.”
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Disclosure: None. 10 Best Stocks to Buy in 2022 According to Billionaire Paul Tudor Jones is originally published on Insider Monkey.
