In this article, we discuss 10 new stock picks of billionaire Paul Tudor Jones.
Paul Tudor Jones, a billionaire hedge fund manager and founder of the Tudor Investment Corp, believes that fixed income markets are tumbling and the equity market is worse than ever currently. He recently said that bonds and stocks are not feasible investments in this environment, but investors should navigate the stock market carefully with simple trend-following strategies to benefit from share price gains.
Paul Tudor Jones believes the crypto and Web3 space is currently attracting high momentum despite market selloff, which makes it tough “not to be long” on crypto bets. The billionaire first revealed that he owned Bitcoin in 2020, and his investment portfolio has a “modest allocation” in crypto.
According to the 13F filings from Q1 2022, Tudor Investment Corp invests in the real estate, utilities and telecommunications, information technology, industrials, healthcare, finance, consumer discretionary, and communications sectors. Billionaire Paul Tudor Jones’ hedge fund purchased 637 new stocks in the first quarter of 2022, while making additional purchases in 588 securities. Some of the most notable stocks in Paul Tudor Jones’ portfolio included Airbnb, Inc. (NASDAQ:ABNB), Amazon.com, Inc. (NASDAQ:AMZN), and Zoom Video Communications, Inc. (NASDAQ:ZM).
Our Methodology
We used the Q1 2022 portfolio of billionaire Paul Tudor Jones for this analysis, selecting the most prominent new stock picks of his hedge fund during the quarter.
New Stock Picks of Billionaire Paul Tudor Jones
10. Wells Fargo & Company (NYSE:WFC)
Number of Hedge Fund Holders: 93
Wells Fargo & Company (NYSE:WFC) is a California-based diversified financial services company that operates through four segments – Consumer Banking and Lending, Commercial Banking, Corporate and Investment Banking, and Wealth and Investment Management. Securities filings for Q1 2022 disclose that billionaire Paul Tudor Jones added Wells Fargo & Company (NYSE:WFC) to his portfolio by purchasing 49,091 shares worth $2.3 million.
Wells Fargo & Company (NYSE:WFC) on April 26 declared a $0.25 per share quarterly dividend, in line with previous. The dividend is payable on June 1, to shareholders of the company as of May 6. Wells Fargo & Company (NYSE:WFC)’s dividend yield on May 24 stood at 2.31%.
On April 18, Barclays analyst Jason Goldberg lifted the price target on Wells Fargo & Company (NYSE:WFC) to $64 from $62 and maintained an Overweight rating on the shares after the Q1 results. According to the analyst, Wells Fargo & Company (NYSE:WFC) raised its 2022 net interest income and loan growth outlook, while keeping its expense forecast unchanged. Still, many of the bank’s income streams face short-term headwinds and the company halted near-term share repurchases. However, the analyst believes the net impact should be positive.
According to Insider Monkey’s Q1 data, 93 hedge funds were bullish on Wells Fargo & Company (NYSE:WFC), compared to 94 funds in the earlier quarter. Patrick Degorce’s Theleme Partners is the leading shareholder of the company, with 18.25 million shares worth $884.7 million.
In addition to Airbnb, Inc. (NASDAQ:ABNB), Amazon.com, Inc. (NASDAQ:AMZN), and Zoom Video Communications, Inc. (NASDAQ:ZM), Wells Fargo & Company (NYSE:WFC) is a notable stock in Paul Tudor Jones’ portfolio.
Here is what Davis Opportunity Fund has to say about Wells Fargo & Company (NYSE:WFC) in its Q4 2021 investor letter:
“The absolute level of revenues and profits generated by such companies is in fact so large that most of the major financial holdings in the portfolio produce enough annual operating income individually that a number of them could, in theory, purchase several entire businesses among hundreds of choices within the S&P 1500 Index, using just a year’s cash earnings without dipping into capital. This is theoretical, as financial companies would not be in the business of buying healthcare or technology companies, for example, but we point out these facts to illustrate the sheer scale of the economics produced by single financial companies in a given year, which is often a multiple of the cash earnings yielded by companies in a host of other industries.
Given this cash-generation power, we are naturally drawn to what we believe are strong and profitable financial institutions when the price is right. Presently, we believe the valuations of our financial holdings are not only reasonable, but extremely compelling, and our portfolio composition reflects this view. Representative financial holdings in the Fund include Wells Fargo.”
9. Lockheed Martin Corporation (NYSE:LMT)
Number of Hedge Fund Holders: 56
Lockheed Martin Corporation (NYSE:LMT) is an American security and aerospace company, operating through four divisions – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Paul Tudor Jones purchased 2,008 shares of Lockheed Martin Corporation (NYSE:LMT) in Q1 2022, worth $886,000.
On April 19, Lockheed Martin Corporation (NYSE:LMT) posted earnings for the first quarter of 2022. The company reported an EPS of $6.44, beating analysts’ predictions by $0.26. The revenue of $14.96 billion, however, missed Street estimates by $529.16 million. The company has recently bagged several defense and air force contracts.
Argus analyst John Eade on April 20 raised the price target on Lockheed Martin Corporation (NYSE:LMT) to $500 from $415 and kept a Buy rating on the shares. The analyst noted that Lockheed Martin Corporation (NYSE:LMT) has consecutively reported positive surprises to the Street in recent years, regardless of defense spending or which government is in power. He further cited his “favorable view” of Lockheed Martin Corporation (NYSE:LMT)’s focus on international revenue diversification and expects the continued geopolitical instability to boost the company’s sales and earnings in the foreseeable future.
According to Insider Monkey’s Q1 database, Lockheed Martin Corporation (NYSE:LMT) was part of 56 public hedge fund portfolios, up from 42 funds in the last quarter. Rajiv Jain’s GQG Partners disclosed a significant position in the company, comprising 1.7 million shares worth $763.2 million.
Here is what Vltava Fund has to say about Lockheed Martin Corporation (NYSE:LMT) in its Q4 2021 investor letter:
“Of course, not all of our companies are doing better than we expected. Lockheed Martin fell somewhat short of our expectations last year. In the cases of Lockheed disruptions in the supply and logistics chains. Lockheed uses a great many subcontractors from various countries and could not avoid issues with continuity of supplies. As a result, production will be slightly lower than we had expected.”
8. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 47
Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet company that offers access to search, feed, and other services. Paul Tudor Jones’ Tudor Investment Corp added Baidu, Inc. (NASDAQ:BIDU) to its Q1 portfolio by buying 25,700 shares of the company, worth $3.40 million.
JPMorgan analyst Alex Yao on May 16 upgraded Baidu, Inc. (NASDAQ:BIDU) to Neutral from Underweight, raising the price target to $125 from $90. The “significant uncertainties” in the Chinese internet sector are beginning to normalize due to recent regulatory announcements, the analyst told investors. The analyst expects “early-cycle sectors” such as digital entertainment, local service, and e-commerce “to be the first batch of outperformers”. The analyst now has a more balanced outlook on the stocks.
According to the first quarter database of Insider Monkey, 47 hedge funds were bullish on Baidu, Inc. (NASDAQ:BIDU), up from 38 funds in the last quarter. The total stakes held in Q1 amounted to approximately $1.6 billion, compared to $1.4 billion in Q4 2021. John W. Rogers’ Ariel Investments is the biggest shareholder of the company, with 2.6 million shares worth over $349 million.
Here is what Ariel International & Ariel Global Fund has to say about Baidu, Inc. (NASDAQ:BIDU) in its Q3 2021 investor letter:
“When we have such a high level of conviction for a company it is not uncommon for us to own it in size across our portfolios. Such is the case with technology giant Baidu, whose leading search engine has been dubbed the “Google of China.” This quarter shares sold off in sympathy with the Chinese internet sector as investors were rattled by the government’s sweeping regulatory crackdown intended to promote “common prosperity” by easing wealth inequality. While we recognize the greater political risk of investing in emerging markets such as China and incorporate an appropriately higher risk premium in the discount rate in our valuation models, we believe Baidu’s business strategy is aligned with national policies and priorities and is therefore not adversely impacted unlike some other players in the internet sector who are in the eye of the storm.
Indeed, the Chinese government recognizes Baidu’s large, upfront investments in many next-generation artificial intelligence (AI) technologies and hails it as a national champion. For example, the company’s Advanced Driving Support System (ADAS), Apollo, has twice as much data on miles driven than any other initiative in the world, giving Baidu (and China) a large lead in the global AI arms race. In addition, Baidu’s cloud offering touts highly differentiated Platform as a Service (PaaS) features and capabilities for a demanding enterprise customer base. While these initiatives are a temporary drag on margins and require long-term execution, their success will bolster China’s “dual circulation” strategy aimed at spurring domestic demand, innovation and self-reliance.” (Click here to see the full text)
7. Snap Inc. (NYSE:SNAP)
Number of Hedge Fund Holders: 54
Snap Inc. (NYSE:SNAP) is a California-based social media and camera company. In the first fiscal quarter of 2022, Paul Tudor Jones acquired a position in Snap Inc. (NYSE:SNAP) by purchasing 45,640 shares of the company worth $1.6 million.
On May 24, Truist analyst Youssef Squali slashed the price target on Snap Inc. (NYSE:SNAP) to $33 from $60 after the company lowered its Q2 guidance due to macro headwinds but maintained a Buy rating on the shares. The change in outlook is disappointing, but this slowdown will be temporary owing to Snap Inc. (NYSE:SNAP)’s solid fundamentals, with increasing adoption of its first-person data measurement solutions, higher DAUs, and mainstream use of new products like Spotlight, Map, and AR/VR for commerce, the analyst told investors.
Among the hedge funds tracked by Insider Monkey, 54 funds were bullish on Snap Inc. (NYSE:SNAP) at the end of March 2022, compared to 55 funds in the last quarter. Stephen Mandel’s Lone Pine Capital is the largest stakeholder of the company, with 18.4 million shares valued at $664.4 million.
Here is what Baron Opportunity Fund has to say about Snap Inc. (NYSE:SNAP) in its Q4 2021 investor letter:
“Snap Inc. is the leading social network among teens and young adults in North America and a growing number of overseas markets, including Western Europe and India. Shares fell this quarter on a greater than anticipated impact from Apple’s new privacy changes for iOS mobile devices. These changes made it more difficult for Snapchat to measure the effectiveness of ads shown on its platform. We believe this is a near-term, industry-wide issue for which Snap is already developing a solution. Longer term, we continue to view Snap favorably as the company sustains its rapid pace of product innovation and expands its premium partnerships with advertisers.”
6. Chubb Limited (NYSE:CB)
Number of Hedge Fund Holders: 31
Chubb Limited (NYSE:CB) provides insurance and reinsurance products worldwide. Chubb Limited (NYSE:CB) reported earnings for Q1 on April 26, posting an EPS of $3.82, beating market consensus by $0.34. The revenue of $8.61 billion grew 7.10% year-over-year, but fell short of analysts’ predictions by $115 million.
Securities filings for Q1 2022 reveal that Paul Tudor Jones’ fund purchased 13,230 shares of Chubb Limited (NYSE:CB), worth $2.83 million. Chubb Limited (NYSE:CB) is one of the newest stock picks of billionaire Paul Tudor Jones.
On May 19, Chubb Limited (NYSE:CB) declared a $0.83 per share quarterly dividend, a 3.7% increase from its prior dividend of $0.80. The dividend is payable on July 8, to shareholders of record on June 17. Chubb Limited (NYSE:CB) has consistently raised its dividends for 30 years, making it a reliable dividend aristocrat.
Citi analyst Michael Ward initiated coverage of Chubb Limited (NYSE:CB) on May 23 with a Neutral rating and a $209 price target.
Among the hedge funds tracked by Insider Monkey at the end of March 2022, 31 funds reported owning stakes worth $1.8 billion in Chubb Limited (NYSE:CB), compared to 34 the prior quarter worth $1.7 billion. Andreas Halvorsen’s Viking Global held a significant stake in the company, with 3.20 million shares worth $684.74 million.
Like Airbnb, Inc. (NASDAQ:ABNB), Amazon.com, Inc. (NASDAQ:AMZN), and Zoom Video Communications, Inc. (NASDAQ:ZM), elite investors are piling into Chubb Limited (NYSE:CB).
Here is what Davis Funds has to say about Chubb Limited (NYSE:CB) in their Q4 2020 investor letter:
“Chubb is now among the Fund’s largest P&C holdings at 5.2% and illustrates well why we thought there was an opportunity to add to our P&C names. Through September 30, 2020, Chubb had returned −24% for the year, reflecting investors’ fears that (1) the insurance industry would be compelled to cover substantial business interruption claims that were never intended as part of insured’s policies, (2) declining long-term rates would diminish the value of “float” (i.e., customers’ funds that insurers get to hold and invest until claims are paid), and (3) adverse trends (pre-dating the pandemic) in insured loss rates (e.g., rising litigation and settlement costs, increased frequency and severity of catastrophe losses, etc.).
With industry economics already soft, it was only a matter of time before insurance pricing would have to adjust. In fact, P&C pricing had already begun to increase in a number of business lines before COVID hit, and that trend has only increased and broadened since then. Chubb disclosed in Q3 2020 that North American commercial P&C pricing increased by more than 15% in aggregate. Some of the price increase will go to cover rising insurance loss rates, but we certainly do anticipate some dropping into underwriting profit too. Admittedly, some of that increased underwriting profit will itself get offset by a decline in investment income owing to lower interest rates, but that is a “feature,” if you will, of P&C insurance companies. Unlike a bank, where the floor on its deposit funding costs practically speaking is zero, there is in theory no reason underwriting profit cannot increase to offset low interest rates, so it is feasible for its earnings to “normalize” far in advance of an eventual rise in long-term rates. (Click here to read full text)
5. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Abbott Laboratories (NYSE:ABT) was founded in 1888 and is based in North Chicago, Illinois. It is a healthcare company operating via Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices segments. Paul Tudor Jones added Abbott Laboratories (NYSE:ABT) to his Q1 holdings by purchasing 93,944 shares of the company, worth $11.1 million.
On April 20, Abbott Laboratories (NYSE:ABT) posted its Q1 results, announcing an EPS of $1.73, beating market estimates by $0.27. The revenue of $11.90 billion also outperformed Street estimates by $898.71 million. Abbott Laboratories (NYSE:ABT) is a reliable dividend king, with consistent dividend increases stretching back 50 years.
Citi analyst Joanne Wuensch on May 17 lowered the price target on Abbott Laboratories (NYSE:ABT) to $125 from $154 and reaffirmed a Buy rating on the shares. As per the analyst, market multiples are shrinking due to soaring inflation, slowing growth, and higher interest rates. The fate of medical technology firms amid the current market remains uncertain, Wuensch told investors.
According to Insider Monkey’s Q1 data, Abbott Laboratories (NYSE:ABT) was found in 68 hedge fund portfolios, compared to 64 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the biggest shareholder of the company, with more than 9 million shares exceeding $1 billion in value.
Here is what Richie Capital Group has to say about Abbott Laboratories (NYSE:ABT) in its Q4 2021 investor letter:
“Abbott Labs (ABT – up 20.08%) – Abbott Labs continues to benefit from resurging demand for Covid testing kits. The company is planning to increase their monthly production of BinaxNOW athome rapid tests to 100M a month, a 43% increase from current levels.”
4. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA) was a new arrival in billionaire Paul Tudor Jones’ Q1 portfolio. Jones, via Tudor Investment Corp, purchased 3,002 shares of the company, valued at over $1 million. Mastercard Incorporated (NYSE:MA) is one of the most prominent American fintech firms, enabling card-based transactions and digital financial solutions worldwide.
On April 28, Mastercard Incorporated (NYSE:MA) announced its Q1 results, reporting earnings per share of $2.76, beating market consensus by $0.60. The revenue grew 24.36% year-over-year to $5.17 billion, outperforming analysts’ predictions by $267.59 million.
Goldman Sachs analyst Will Nance on May 17 initiated coverage of Mastercard Incorporated (NYSE:MA) with a Buy rating and a $460 price target, implying 38% upside. The analyst noted that after “lackluster returns in 2021 and a choppy start to 2022”, he is “constructive” on the payments space, observing relative valuations have fallen prominently over the last six months. He believes the companies are positioned well to navigate a low-growth, inflationary world, the analyst added.
Mastercard Incorporated (NYSE:MA) was part of 136 public stock portfolios in Q1 2022, compared to 144 funds in the prior quarter. Charles Akre’s Akre Capital Management disclosed a $2 billion Mastercard Incorporated (NYSE:MA) stake in the first fiscal quarter of 2022.
Here is what Saturna Capital Amana Funds has to say about Mastercard Incorporated (NYSE:MA) in its Q4 2021 investor letter:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 71
Broadcom Inc. (NASDAQ:AVGO) is a California-based semiconductor and infrastructure software company. In Q1 2022, Paul Tudor Jones’ Tudor Investment Corp added Broadcom Inc. (NASDAQ:AVGO) to its portfolio by acquiring 4,579 shares worth $2.8 million.
On May 23, Broadcom Inc. (NASDAQ:AVGO) disclosed that it plans to pay around $140 per share for the acquisition of VMware, Inc. (NYSE:VMW). The total transaction would be worth about $60 billion. Upon this announcement, VMWare shares soared 25%, while Broadcom Inc. (NASDAQ:AVGO) stock slipped 3.1%. Mizuho analyst Vijay Rakesh on May 24 reiterated a Buy rating on Broadcom Inc. (NASDAQ:AVGO) with a $700 price target after reports that the company is in talks to acquire VMware.
Among the hedge funds tracked by Insider Monkey, 71 funds were bullish on Broadcom Inc. (NASDAQ:AVGO) at the end of March 2022, up from 62 funds in the last quarter of 2021. Cantillon Capital Management reported a significant stake in the company, comprising more than 1 million shares worth $652.18 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 159
Visa Inc. (NYSE:V) is one of the most prominent American payments technology firms. Billionaire Paul Tudor Jones acquired a stake in Visa Inc. (NYSE:V) during the first quarter of 2022, buying 20,702 shares worth about $4.6 million. On April 26, Visa Inc. (NYSE:V) posted above consensus earnings and revenue for Q1, coming in at $1.79 and $7.19 billion respectively.
On May 17, Goldman Sachs analyst Will Nance initiated coverage of Visa Inc. (NYSE:V) with a Buy rating and a $282 price target, implying 43% upside. The analyst also added the shares to the firm’s Americas Conviction List. He sees Visa Inc. (NYSE:V) as the global leader in payments with “attractive leverage to the long-term secular growth driver from payment electronification”.
Among the hedge funds tracked by Insider Monkey, 159 funds were bullish on Visa Inc. (NYSE:V) at the end of March 2022, up from 142 funds in the preceding quarter. Chris Hohn’s TCI Fund Management is a prominent shareholder of the company, with almost 20 million shares worth $4.4 billion.
Here is what Baron Durable Advantage Fund has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:
“Shares of global payment network Visa, Inc. (NYSE:V) were up 2.5% on strong quarterly results with 24% revenue growth and 27% EPS growth. Payment volume grew 20% with notable strength in cross-border volumes as travel activity rebounded from depressed levels. Management raised full-year guidance to reflect high-teens revenue growth. Shares also likely benefited from a “flight to safety” during a volatile quarter for equities. We continue to own the stock due to Visa’s long runway for growth underpinned by the continued migration from cash transactions to card/digital and strong competitive advantages, operating in a duopoly with Mastercard.”
1. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
Coinbase Global, Inc. (NASDAQ:COIN) was founded in 2012 and is based in Wilmington, Delaware. The company provides financial infrastructure and technology for the global crypto universe. Paul Tudor Jones added Coinbase Global, Inc. (NASDAQ:COIN) to his portfolio by purchasing 1,167 shares worth $222,000.
On May 24, MoffettNathanson analyst Lisa Ellis maintained a Buy recommendation on Coinbase Global, Inc. (NASDAQ:COIN) but slashed the price target on the stock to $200 from $600 after updating her valuation to account for a revised outlook for the company, as well as market conditions. She is assuming the difficult crypto cycle will continue in 2022, with Coinbase Global, Inc. (NASDAQ:COIN)’s trading volumes down 70% year-over-year and total revenue declining 50% year-over-year. She is also assuming 2023 will be mostly flat like 2022, with crypto reaccelerating in 2024 and projects that 2025 will be the peak year of the present cryptocurrency cycle.
According to Insider Monkey’s Q1 data, 46 hedge funds were bullish on Coinbase Global, Inc. (NASDAQ:COIN), compared to 57 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the leading shareholder of the company, with almost 7 million shares worth $1.3 billion.
Here is what Longleaf Partners Fund has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2021 investor letter:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”
You can also take a look at 10 Consumer Technology Stocks to Invest In According to Ken Fisher’s Fisher Asset Management and Top 9 Stocks Billionaire Larry Robbins Just Added to His Portfolio.
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Disclosure: None. 10 New Stock Picks of Billionaire Paul Tudor Jones is originally published on Insider Monkey.
