In this article, we discuss 5 bargain stocks that billionaire Paul Tudor Jones is buying amid selloff. If you want to see more stocks that were purchased on the dip by the billionaire, click This Billionaire is Buying These 10 Bargain Stocks Amid Selloff.
5. IAC/InterActiveCorp (NASDAQ:IAC)
Number of Hedge Fund Holders: 48
YTD Share Price Decline as of May 26: 38.02%
As of May 26, IAC/InterActiveCorp (NASDAQ:IAC) shares have declined over 38% so far this year. It is one of the most prominent bargain stocks in the Q1 portfolio of billionaire Paul Tudor Jones. He added IAC/InterActiveCorp (NASDAQ:IAC) to his holdings in the March quarter by purchasing 63,118 shares of the company, worth $6.3 million.
On May 11, Cowen analyst John Blackledge cut the price target on IAC/InterActiveCorp (NASDAQ:IAC) to $150 from $180 and maintained an Outperform rating on the shares. The analyst told investors that valuation remains attractive amid its strong results and positive outlook for Angi and Dotdash.
According to Insider Monkey’s data, 48 hedge funds were bullish on IAC/InterActiveCorp (NASDAQ:IAC) at the end of March 2022, with collective stakes worth $1.6 billion, compared to 47 funds in the last quarter, holding stakes in the company valued at about $2 billion. Dennis Hong’s ShawSpring Partners held the largest position in IAC/InterActiveCorp (NASDAQ:IAC), comprising 3.3 million shares worth $332.5 million.
Here is what White Brook Capital has to say about IAC/InterActiveCorp (NASDAQ:IAC) in its Q1 2022 investor letter:
“During the quarter, White Brook exited IAC/InteractiveCorp (IAC) on socially responsible investing grounds. White Brook invested in the Company several years ago and benefitted as the company spun to investors, Match Group, Inc (MTCH) and Vimeo, Inc (VMEO) – stakes which were quickly disposed of. However, in the depths of the pandemic, IAC also invested in MGM Resorts. It was a relatively small investment for the company, and to my understanding at the time represented an opportunistic investment by an opportunistic value investment firm. White Brook noted the transgression of principles, put the company on its “Watch List”, but given the relatively small amount of the value that it represented to IAC as a whole, continued to own the stock. If the MGM holding was relatively transitory and the position relatively small, in my view, like the alcohol content of a freshly juiced orange, it did not taint the whole. The Company’s hiring of the former CFO of the NFL during the first quarter this year, however, was an unmistakable sign that gambling would be a bigger part of their future, and an order to sell was initiated, but due to the price action that day not executed. When they increased their stake in MGM later in the quarter, I accepted the market price at the moment and the order was immediately executed. IAC was a very successful investment for the Fund.”
