In this piece, we will take a look at the 12 best stocks to buy according to billionaire Paul Tudor Jones. If you want to skip our introduction to the well known hedge fund boss, his financial firm, and the broader stock market, then take a look at 5 Best Stocks to Buy According to Billionaire Paul Tudor Jones.
Paul Tudor Jones is one of the richest hedge fund investors in the world. He set up his hedge fund Tudor Investment Corporation in 1980 and since then, the fund has grown to be quite sizeable. By the end of this year's third quarter, Tudor Investment's portfolio was worth $9.9 billion, marking a sizeable $1.6 billion growth over the previous quarter. Like other seasoned hedge fund bosses, Mr. Tudor also has gained his fair share of laurels on the stock market. Some of his most well known bets came in 1987 when he bet against both American and Japanese stock markets. The year 1987 is one of the most well known periods in stock market history that is now known as the year in which the Black Monday event took place (on October 19). The stock market crash came after a five year bull run as investors started to fret that valuations were a bit too stretched. This made them place a lot of bets against the market, and due to market closure, when all of these were simultaneously executed, the market crashed.
Mr. Tudor was one of those investors who had bet against the market, and as a result, his hedge fund delivered a whopping 125% in gains after fees (some estimates believe Tudor Investment made a cool $100 million). Tudor Investment was not finished timing the market just yet, as it replicated the strategy a couple of years later during a pivotal time during the Asian economic giant Japan's economic history. Japan's economy and infrastructure were destroyed after the second world war, and in order to economically recover, the country relied on lax policy rates and government incentives to stimulate growth. This worked and Japan became one of the fastest growing economies in the world at the time. However, these policy decisions would also face their reckoning in the form of overvaluation in the market that forced the flagship Nikkei 225 index to crash by 43% during a single year. Mr. Tudor and his investment firm successfully predicted this as well, and this led the fund to deliver 87.4% returns in 1990. The firm's last hurrah in predicting the right stock market trends would come at the turn of the millennium when the dot com bubble popped.
However, a career in the hedge fund industry is bound to have its ups and downs. For Mr. Tudor, the post 2001 period was particularly muted, especially as the Federal Reserve slashed interest rates to the bare minimum. Time has also seen his influence in the hedge fund reduce, as some estimates suggest that as of 2014, he was responsible for 20% of the trading decisions surrounding Tudor Investment's flagship fund, Tudor BVI.
Taking a look at Mr. Tudor's time in the industry before he set up his hedge fund, he started his career in the multi billion dollar commodities trading industry. This would help him when he set up Tudor Investment, as Commodities Corporation, which would later become a part of the investment bank Goldman Sachs, was one of the first to provide capital to the hedge fund for investment. Additionally, as opposed to other seasoned financial and hedge fund players who have made their stock market fortunes by value investing, Mr. Tudor is commonly known as a trends player who sees the direction that the market is heading and then places bets to benefit from them.
While this approach led to a muted performance by Mr. Tudor and his firm over the past decade, these days it's become more important. This is because interest rates are at record high levels once again, and shifts in commodities industries such as the oil market have become more common due to conflicts such as the Russian invasion of Ukraine and the Israel-Palestine war in the Middle East. The shifting trends also suggest that Tudor Investment is benefiting from the changes, since its Q3 2023 portfolio of $9.9 billion marks a sizeable growth over its value of $4.6 billion during the year ago quarter.
Tudor Investment's investment portfolio has more than doubled over the year, and this makes looking at its latest investments even more important. We took a look at some of billionaire Paul Tudor's latest stock picks today, and some notable names are VMware, Inc. (NYSE:VMW), Splunk Inc. (NASDAQ:SPLK), and Seagen Inc. (NASDAQ:SGEN).
12 Best Stocks to Buy According to Billionaire Paul Tudor Jones
Our Methodology
To compile our list of Paul Tudor's latest stock picks, we looked at his firm's SEC filings for Q3 2023 and picked out the 12 biggest investment positions.
Best Stocks to Buy According to Billionaire Paul Tudor Jones
Tudor Investment's Q2 2023 Investment: $33 million
Adobe Inc. (NASDAQ:ADBE) is a software company that sells products to businesses and individuals. It marks a strong start to our list of the best stocks to buy according to Paul Tudor since the firm's shares are rated Strong Buy on average and analysts have set an average share price target of $616.
109 out of the 910 hedge funds part of Insider Monkey's June quarter of 2023 database had invested in the firm. Adobe Inc. (NASDAQ:ADBE)'s biggest hedge fund investor in the September quarter was Ken Fisher's Fisher Asset Management as it owned 4.5 million shares that are worth $2.3 billion.
Just like Splunk Inc. (NASDAQ:SPLK), VMware, Inc. (NYSE:VMW), and Seagen Inc. (NASDAQ:SGEN), Adobe Inc. (NASDAQ:ADBE) is a top Paul Tudor stock pick.
Tudor Investment's Q2 2023 Investment: $33.4 million
Mobileye Global Inc. (NASDAQ:MBLY) is an Israeli technology company developing self driving products and technologies. The firm posted strong third quarter financials in October 2023 that saw it beat analyst revenue and EPS estimates and increase its 2023 profit guidance as well.
During Q2 2023, 36 among the 910 hedge funds tracked by Insider Monkey owned Mobileye Global Inc. (NASDAQ:MBLY)'s shares.
Tudor Investment's Q2 2023 Investment: $33.7 million
Lockheed Martin Corporation (NYSE:LMT) is an aerospace defense contractor known for its fifth generation fighter aircraft and other platforms. The firm has one eye on the future as it concluded a funding round in a hypersonic 3D printed engine company in November 2023.
After scouring through 910 hedge fund portfolios for this year's second quarter, Insider Monkey found that 52 had bought a stake in Lockheed Martin Corporation (NYSE:LMT). During Q3, the firm's largest stakeholder in our database was John Overdeck and David Siegel's Two Sigma Advisors due to its $366 million investment.
Tudor Investment's Q2 2023 Investment: $33.9 million
Airbnb, Inc. (NASDAQ:ABNB) is a travel and accommodation services provider. Its shares were under a bit of pressure in November after Evercore ISI downgraded the shares to In Line from Outperform but kept a $136 share price target for the firm, citing a weaker risk/reward outlook.
As of June 2023 end, 47 out of the 910 hedge funds profiled by Insider Monkey were the firm's shareholders. Airbnb, Inc. (NASDAQ:ABNB)'s biggest hedge fund investor in September 2023 was Jim Simons' Renaissance Technologies due to its $617 million investment.
Tudor Investment's Q2 2023 Investment: $34.5 million
CVS Health Corporation (NYSE:CVS) is one of the largest pharmacies and healthcare distributors in America with more than two hundred thousand employees. While the firm posted a strong set of results for its third quarter financials that beat analyst revenue and EPS estimates, there might be some trouble brewing under the hood as pharmacists have repeatedly complained about long and grueling work hours.
As of Q2 2023 end, 66 out of the 910 hedge funds part of Insider Monkey's database had held a stake in CVS Health Corporation (NYSE:CVS). John Overdeck and David Siegel's Two Sigma Advisors owned the largest stake during Q3 which was worth $344 million.
Tudor Investment's Q2 2023 Investment: $35.8 million
Zoom Video Communications, Inc. (NASDAQ:ZM) is a video streaming software provider. While the firm's return to Earth after the coronavirus pandemic is striking, Citi upgraded the shares to Neutral from Sell in November 2023 as it cited an improved corporate spending environment and higher visits to share that Zoom Video Communications, Inc. (NASDAQ:ZM)'s operations might be stabilizing.
During this year's June quarter, 37 out of the 910 hedge funds researched by Insider Monkey had bought the firm's shares. Zoom Video Communications, Inc. (NASDAQ:ZM)'s biggest hedge fund investor in the following quarter was Catherine D. Wood's ARK Investment Management due to its $712 million investment.
Tudor Investment's Q2 2023 Investment: $37.7 million
NIKE, Inc. (NYSE:NKE) is a sports apparel retailer. With prices still being higher than most Americans would like, the firm increased its dividend to 37 cents in November 2023 as worries about higher costs affecting the bottom line had the potential of spooking the market.
Insider Monkey dug through 910 hedge funds for their second quarter of 2023 shareholdings to find that 70 had invested in NIKE, Inc. (NYSE:NKE). In Q3, the biggest hedge fund investor was Ken Fisher's Fisher Asset Management as it owned 9.6 million shares that were worth $924 million.
VMware, Inc. (NYSE:VMW), NIKE, Inc. (NYSE:NKE), Splunk Inc. (NASDAQ:SPLK), and Seagen Inc. (NASDAQ:SGEN) were some top stocks in Paul Tudor and Tudor Investment's Q3 2023 portfolio.
