Billionaire Paul Tudor Jones’ Top Picks Show Modest Returns but Lots of Potential

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Paul Tudor JonesTudor Investment Corp, which manages about $13 billion has recently been hit by redemption requests amounting to over $1 billion following the firm’s lackluster performance in the last two years and a loss of 2.8% for the flagship BVI Global fund during the first three months of this year. In 2015, Tudor Investment posted meager gains of 1.4% and had a return of 3.5% in 2014. If we take into account Tudor Investment long positions in companies with a market capitalization above $1.0 billion (a total of 1046 holdings) at the start of the first quarter, then the weighted average return of these positions stands at 1.1% for the first quarter. Tudor Investment Corp will file its 13F filing for the end of the first quarter in the next couple of weeks, but, meanwhile, let’s take a look at the performance of some of its picks so far this year.

Our research determined that following the small-cap stocks, that hedge funds are collectively bullish on, can help a smaller investor beat the S&P 500 by around 95 basis points per month (see more details here).

#5 Alibaba Group Holding Ltd (NYSE:BABA)

– Shares Owned by Tudor Investment (as of December 31): 413,400

– Value of Holding (as of December 31): $33.60 Million

Tudor Investment more than tripled its Alibaba Group Holding Ltd (NYSE:BABA) holding during the fourth quarter, and the e-commerce giant’s stock price has inched down by 2.50%. The company reached a new high point of its acquisition ventures recently when it announced that it will pay a billion dollars for a stake in the Singapore-based leading Southeast Asian e-commerce start-up Lazada Group. This would mark Alibaba’s largest overseas acquisition to date. In March, Alibaba announced that it had become the world’s largest retailer based on gross merchandise volume. Ken Fisher‘s Fisher Asset Management hiked its Alibaba Group Holding Ltd (NYSE:BABA) stake by 40% to 3.08 million shares during the first quarter.

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#4 Time Warner Cable Inc (NYSE:TWC)

– Shares Owned by Tudor Investment (as of December 31): 200,000

– Value of Holding (as of December 31): $37.12 Million

Since the beginning of 2016, Time Warner Cable Inc (NYSE:TWC)’s stock has advanced by nearly 15%, marking a definite win for Tudor, as the company’s merger deal with Charter Communications has been recently approved. The company has been losing its cable subscribers, which account for nearly 80% of Time Warner Cable’s top line. The number has dropped from 13 million in 2008 to less than 11 million at the end of last year. John Paulson‘s Paulson & Co held about 8.12 million shares of Time Warner Cable Inc (NYSE:TWC) at the end of December last year.

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