In this article, we will take a detailed look at Billionaire Paul Tudor Jones and Insiders Love These 10 Stocks.
In an interview given to the Palm Beach Civic Association in January 2024, billionaire Paul Tudor Jones said that whatever happens in the US stock market in the next 12 to 24 months would largely depend on the fiscal situation and policy response of the next President of the country. Jones, who has a net worth of over $8 billion, said the stock market is not the manifestation of the economic fundamentals. Instead, according to Jones, markets represent people’s ideas and what they make of the economic situation. Paul Tudor Jones said that there’s a chance the stock market would be “here or lower” in the next five to ten years. However, the billionaire also said it’s possible that the markets would go higher from here if the next President of the US devises a better “policy response” next year.
Paul Tudor Jones Thinks AI Could Save Us From the Current “Mess”
Paul Tudor Jones also highlighted the concentration of stock market gains problem in the US and said last year most of the stock market gains came from the Magnificent Seven group of stocks which are pulling overall market returns through the roof. He repeatedly said that AI is “hugely” important when it comes to productivity gains and GDP growth in the US. He thinks AI could be the thing that would save us from the current economic “mess.”
“AI could be the knight on the horse that rides and saves us.”
What Worries Billionaire Paul Tudor Jones About AI?
But AI-related threats worry Paul Tudor Jones. He referred to a survey where close to 3,000 AI experts were asked whether they believe AI would end humanity. According to Jones, a whopping 58% of the experts said yes. The billionaire said US policymakers will have to decide how to tackle this problem. Jones believes AI is growing at an “unbridled pace” since there’s so much money to be made in the domain but the biggest problem for policymakers would be to balance the benefits and threats of AI to make it sustainable.
Jones said that he’s a macro trader who doesn’t trade a lot of individual stocks and instead focuses on trading “basket” of stocks like S&P 500, in addition to indexes in Europe and Japan. Nonetheless Jones’ latest portfolio shows he has big stakes in companies like NVIDIA Corp (NASDAQ: NVDA), Exxon Mobil Corp (NYSE:XOM) and Salesforce Inc (NYSE:CRM). In this article we will see which stocks in his portfolio are also seeing insider buying activity.
Methodology
For this article we first scanned Paul Tudor Jones’ Q4’2023 portfolio and picked 10 of these stocks which saw heavy insider buying activity over the past 12 months. But why is it important to keep tabs on hedge fund and insider activity? Hedge funds’ top 10 consensus stock picks outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here).
10. Wave Life Sciences Ltd (NASDAQ:WVE)
Paul Tudor Jones’ Stake: $184,729
RNA medicines company Wave Life Sciences Ltd. (NASDAQ:WVE) is one of the stocks in Paul Tudor Jones’ portfolio that saw insider buying over the past few months. RA CAPITAL MANAGEMENT, L.P., which has a director status at the company’s board, bought one million shares of the company on December 11, 2023, at $5.00 per share. Since then the stock has gained about 54%.
In its Q4 earnings call earlier this month, the company talked about future expectations and progress on its products:
“We’re advancing WAVE-006 in our ongoing RestorAATion clinical program. The program is comprised of two interconnected portions, RestorAATion-1 for healthy volunteers and RestorAATion-2 in AATD for patients who have the homozygous PiZZ mutation. In addition to generating key safety and PK data, RestorAATion-1 is designed to rapidly establish a dose level and regimen that’s expected to engage target. In the RestorAATion-2, we will be taking multiple assessments of serum M-AAT through the low, medium, and high dose cohorts, which will enable us to quickly detect the potential presence of wild-type healthy M-AAT protein in serum, representing achievement of proof of mechanism.
Remember, these easy patients have never made M-AAT protein. So, the presence of any M-AAT would demonstrate that WAVE-006 is successfully editing RNA. We are progressing well in RestorAATion-1. Dose escalation is ongoing. Pharmacokinetic data is as expected, and blinded safety data has been encouraging. We’re on track to initiate the RestorAATion-2 study and deliver proof of mechanism data from RestorAATion-2 in patients with AATD this year. Turning to DMD. This week, our team attended the 2024 MDA Clinical and Scientific Conference, where we showed posters on our clinical data from Part A, including the first evidence of myogenic stem cell or satellite cell uptake. Myogenic stem cells are the progenitor cells for new myoblast, and we’re not aware of any other clinical data for exon skippers or gene therapies that have been able to demonstrate myogenic stem cell uptake.
The DMD community is excited about these data and what they may mean for their boys. Our post has also highlighted our industry-leading mean 53% exon skipping, which was driven by muscle tissue concentrations of 42 micrograms per gram or 42,000 nanograms per gram, which is thousand-fold above what other exon skipping companies have reported. These data give us confidence in achieving best-in-class dystrophin protein expression in our ongoing potentially registrational phase 2 clinical trial, FORWARD-53. FORWARD-53 is an open label trial, which is currently evaluating 10 mg per kg doses of N531 administered every other week. The trial is powered to evaluate functional endogenous dystrophin expression after 24 and 48 weeks of treatment, which will be the trial’s primary endpoint.”
Read the entire earnings call transcript here.
9. Iovance Biotherapeutics Inc (NASDAQ:IOVA)
Paul Tudor Jones’ Stake: $269,493
Tudor Investment Corporation initiated a new stake in Iovance Biotherapeutics Inc (NASDAQ:IOVA) during the fourth quarter of 2023, buying $269,344 worth of company shares during the period.
On February 20, 2024, Wayne P. Rothbaum, a director at Iovance Biotherapeutics Inc board, bought 5,000,000 shares of Iovance Biotherapeutics Inc at $9.15 per share. The stock has gained about 22% since then.
Aristotle Large Cap Growth Strategy made the following comment about Iovance Biotherapeutics, Inc. in its Q3 2023 investor letter:
“We sold Iovance Biotherapeutics, Inc. (NASDAQ:IOVA) following uncertainty which arose from the company canceling out of two investor events. Iovance is in the late stages of FDA review on their lead candidate Lifileucel in advanced melanoma. These cancellations could stem from issues with site inspections which tend to take place later in the review cycle. The company has not commented on why it canceled these investor events, and we do not think this bodes well for the prospects of a straightforward approval with a clean, positive label for the company.”
8. Aon PLC (NYSE:AON)
Paul Tudor Jones’ Stake: $38,144,573
Aon PLC (NYSE:AON) ranks ninth in our list of the stocks bought by Paul Tudor Jones as well as corporate insiders. Professional services and management consulting company Aon PLC is among the top stock picks of Jones as his hedge fund had a $38.14 million stake in Aon PLC.
On February 7, 2024, Lester B Knight, a director at Aol plc, bought 50,000 shares of Aon PLC at $301.97 per share. Since then the stock has gained about 6%.
In addition to AON, Jones is also bullish on NVIDIA Corp, Exxon Mobil Corp and Salesforce Inc.
Polen Global Growth Strategy stated the following regarding Aon plc (NYSE:AON) in its fourth quarter 2023 investor letter:
“AON PLC’s (NYSE:AON) stock price underperformed this past quarter following the announcement of the company’s acquisition of NFP, a middle market insurance broker, for $13 billion. Though the deal complements Aon’s current business, it is expected to be dilutive to earnings in the near term, prompting a sell-off in the shares. We will continue to assess the merits of the NFP transaction, but it does not currently change our long-term view of Aon, which we view as a steady, durable, low-teens earnings compounder.”
7. Scholar Rock Holding Corp (NASDAQ:SRRK)
Paul Tudor Jones’ Stake: $475,490
Massachusetts-based biopharma company Scholar Rock Holding Corp (NASDAQ:SRRK) ranks seventh in our list of the stocks in Paul Tudor Jones’ portfolio that are also bought by corporate insiders.
Tudor Investment Corporation owns a $475,490 stake in Scholar Rock Holding Corp as of the end of the fourth quarter of 2023.
On October 16, Srinivas Akkaraju, a director at Scholar Rock Holding Corp’s (NASDAQ:SRRK) board, loaded up on 2,189,781 shares of Scholar Rock Holding Corp at $6.85 per share. Scholar Rock shares have skyrocketed by about 98% since the date of this insider buying transaction.
In addition to SRRK, hedge funds are also buying NVIDIA Corp, Exxon Mobil Corp and Salesforce Inc.
6. Asana Inc (NYSE:ASAN)
Paul Tudor Jones’ Stake: $3,677,256
Paul Tudor Jones, via his hedge fund Tudor Investment Corporation, increased his stake in project management software company Asana Inc (NYSE:ASAN) by over 200% during the fourth quarter of 2023, ending the period with a $3.7 million stake in Asana Inc.
As of the end of the fourth quarter of 2023, 24 hedge funds tracked by Insider Monkey had stakes in Asana Inc. Asana Inc kept seeing heavy insider buying activity throughout 2023. On November 1, Asana Inc’s (NYSE:ASAN) CEO Dustin Moskovitz loaded up on 237,015 shares of Asana Inc at $17.50 per share. Since then the stock has declined by about 9% through March 13.
5. Block Inc (NYSE:SQ)
Paul Tudor Jones’ Stake: $5,104,327
Paul Tudor Jones’ fund had a $5.1 million stake in Block Inc (NYSE:SQ) as of the end of the fourth quarter of 2023. Roelof Botha, a director at Block Inc’s (NYSE:SQ) board, loaded up on 540,646 SQ shares at $50.89 per share on November 11. Since then through March 13 the stock has gained about a whopping 66%.
As of the end of the fourth quarter of 2023, 75 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Block Inc. The biggest stakeholder of Block Inc was Catherine D. Wood’s ARK Investment Management which owns a $920 million stake in Block Inc.
During this time period the stock has lost about 29% in value.
Baron Fifth Avenue Growth Fund stated the following regarding Block, Inc. in its fourth quarter 2023 investor letter:
“During the quarter, we also added to our existing investment in Block, Inc. (NYSE:SQ). The company provides a point-of-sale technology to small businesses and operates the Cash App ecosystem of financial services for individuals. After the company reported solid quarterly result, it has also guided to reach a rule of 40 on GAAP profitability for fiscal year 2026 (implying that the combination of gross profit growth and GAAP operating margins would be at least 40%). We believe Block’s businesses are resilient, and greater management focus on cost discipline should drive further margin expansion over the long term. We also believe that Block has a long runway for growth, durable competitive advantages, and a robust track record of innovation.”
4. Gates Industrial Corporation PLC (NYSE:GTES)
Paul Tudor Jones’ Stake: $5,613,908
Paul Tudor Jones via Tudor Investment Corporation had a $5.6 million stake in Gates Industrial Corporation PLC (NYSE:GTES) as of the end of the fourth quarter of 2023. On February 16, Neil Simpkins, a director at Gates Industrial Corporation PLC’s (NYSE:GTES) board, snapped up one million shares of Gates Industrial Corporation PLC at $12.20 per share. Since then, through March 13, the stock has gained about 30% in value.
As of the end of the fourth quarter of 2023, 38 hedge funds out of the 933 funds tracked by Insider Monkey had stakes in Gates Industrial Corporation PLC, up from 31 hedge funds in the previous quarter.
3. Coty Inc. (NYSE:COTY)
Paul Tudor Jones’ Stake: $9,923,878
Fragrances and cosmetics products company Coty Inc. (NYSE:COTY) ranks third in our list of the stocks Paul Tudor Jones and insiders are buying. Isabelle Parize, a board member at Coty, on October 9, 2023, bought 4,775 shares of the company at $10.50 per share. Since then the stock has increased by 17%.
2. Warner Bros Discovery Inc (NASDAQ:WBD)
Paul Tudor Jones’ Stake: $12,998,634
Paul Tudor Jones has a $13 million stake in Warner Bros Discovery Inc (NASDAQ:WBD) as of the end of 2023. Gerhard Zeiler, who serves as President of International for Warner Bros Discovery Inc, on August 7 bought 38,000 shares of Warner Bros Discovery Inc at $14.09 per share. Since then the stock has lost about 38% in value. Steven O Newhouse, a director at Warner Bros Discovery Inc board, bought 10 million shares of Warner Bros Discovery Inc on December 14 at 12.49 per share. The stock is down by about 29% since then through March 14.
Longleaf Partners Fund stated the following regarding Warner Bros. Discovery, Inc. in its fourth quarter 2023 investor letter:
“The rules have improved how we analyze existing holdings and influenced the price at which we will buy a new holding and/or trim or add to an existing one. This has resulted in a higher level of resizing positions in the portfolio and exiting some long-term holdings this year. A good example in the portfolio today is Warner Bros. Discovery, Inc. (NASDAQ:WBD), a company that we bought too early but that remains a holding in the portfolio. Our average price for the initial WBD investment in 2021 was $26.48, or a P/V ratio in the mid-60s%. However, P/EV on the initial report was 79%. Under the new rules, we would not pay that price for the company today. We most likely would have waited for a mid-60s% P/EV, which would have equated to a $mid-teens entry price. In this case, we would have missed a too-large initial downturn in the stock price. The overweight rule dictated that we trimmed the position after the price ran up in the first half of 2023, which benefitted overall performance as the stock price subsequently fell again. However, even with the new rule lens, we remain confident in our case for the business and management’s ability to deliver going forward.”
1. Exxon Mobil Corp (NYSE:XOM)
Paul Tudor Jones’ Stake: $63,997,298
Oil giant Exxon Mobil Corp’s (NYSE:XOM) stock was a new arrival in Paul Tudor Jones’ portfolio during the fourth quarter as his hedge fund bought a stake worth about $64 million in Exxon Mobil Corp. Exxon Mobil Corp also saw insider buying activity over the past few months. On July 31, 2023, Jeff Ubben, a director at Exxon Mobil Corp’s (NYSE:XOM) board, bought 458,000 Exxon Mobil Corp shares at $106.93 per share. Since then the stock has gained about 2.1%. On November 6 Ubben yet again started snapping up the stock, this time buying 250,000 XOM shares at $105.97 per share.
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Disclosure. None. Billionaire Paul Tudor Jones and Insiders Love These 10 Stocks was initially published on Insider Monkey.
