In this article, we talk about the 5 best stocks to buy now according to billionaire Paul Tudor Jones. If you want to read our detailed analysis of Jones’ investment philosophy and stock selection, go directly to 10 Best Stocks to Buy Now According to Billionaire Paul Tudor Jones.
5. Starz Acquisition LLC (NASDAQ:STRZA)
Tudor Investment Corp’s Stake Value: $43.71 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 1.02%
Number of Hedge Fund Holders: N/A
Media firm Starz Acquisition LLC (NASDAQ:STRZA) was acquired by Lions Gate Entertainment Corp. (NYSE:LGF-A) in a November 2021 deal worth $4.4 billion. This acquisition allowed Lions Gate to expand its global distribution capabilities, and boost its position in the premium scripted television industry.
Tudor Investment Corp owned 956,000 shares of Starz Acquisition LLC (NASDAQ:STRZA) in the first quarter of 2022, valued at $43.7 million and representing 1.02% of the fund’s total portfolio. This was a boost of 19% over the previous quarter, when Jones’ fund owned 805,000 STRZA shares. Warren Buffett’s Berkshire Hathaway was the largest shareholder of Starz Acquisition LLC (NASDAQ:STRZA) in the first quarter, with 43.20 million shares worth almost $2 billion.
4. American National Group Inc. (NASDAQ:ANAT)
Tudor Investment Corp’s Stake Value: $44.01 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 1.03%
Number of Hedge Fund Holders: 21
American National Group Inc. (NASDAQ:ANAT) is a Texas-based provider of insurance, annuities, and pension products to consumers in the United States and Puerto Rico. The company has been acquired by Brookfield National for $5.1 billion in an all-cash transaction that recently closed on May 25. Jones’ investment firm held nearly 233,000 shares of ANAT in the first quarter, worth $44 million and representing 1.03% of its overall holdings.
At the end of the first quarter of 2022, 21 hedge funds reported ownership positions in American National Group Inc. (NASDAQ:ANAT), with an aggregate value of approximately $262 million. Israel Englander’s Millennium Management held a $47.6 million stake in American National Group Inc. (NASDAQ:ANAT), and thus ranked as the firm’s largest Q1 shareholder.
3. Airbnb, Inc. (NASDAQ:ABNB)
Tudor Investment Corp’s Stake Value: $47.42 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 1.11%
Number of Hedge Fund Holders: 66
Airbnb, Inc. (NASDAQ:ABNB) operates an online platform which lets users rent lease their properties for short-term vacation rentals. It operates in almost every country and region around the globe, with around 100,000 cities worldwide having rentals listed on Airbnb.
On June 3, Truist analyst Naved Khan lowered the firm’s price target on Airbnb, Inc. (NASDAQ:ABNB) to $160 from $190 and reiterated a ‘Hold’ rating on the company’s shares. Although travel demand remains on track for a robust recovery in the near-term, the analyst sees some degree of consumer sensitivity to inflationary pressures according to recent data. ABNB shares have slid more than 47% in the first six months of 2022.
Paul Tudor Jones held a $47.4 million stake in Airbnb, Inc. (NASDAQ:ABNB) in the first quarter, consisting of roughly 276,000 shares. This represented a 3% increase from the previous quarter, when the billionaire held 269,000 shares of the travel firm.
In total, 66 hedge funds held Airbnb, Inc. (NASDAQ:ABNB) stock in their portfolios at the end of the first quarter, with a collective value of $3.69 billion. This showed an uptick in investor sentiment over the previous quarter, when 63 hedge funds were long ABNB shares. The firm’s most prominent shareholder in the first quarter was Renaissance Technologies, with $584.6 million worth of shares.
Asset management firm Tollymore Investment Partners mentioned Airbnb, Inc. (NASDAQ:ABNB) in its Q3 2021 investor letter, stating:
“Today disruptors are not typically seeking to replace incumbents entirely. Rather, they break the links in the customer journey, in doing so better aligning monetisation with value creation and minimising externalities. For example, Airbnb broke the link between staying in residential property and owning it. Airbnb is a specific example of a business model innovation which separated asset use from ownership. This is hardly a novel idea; it’s called renting. Rental models lend themselves to assets which are expensive and durable, and where usage is infrequent.”
2. Anaplan, Inc. (NYSE:PLAN)
Tudor Investment Corp’s Stake Value: $89.23 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 2.08%
Number of Hedge Fund Holders: 47
Anaplan, Inc. (NYSE:PLAN) provides business planning software through a subscription-based model, as well as data analytics to enable better decision-making. The company’s products are used by more than 1,000 organizations around the globe, including healthcare, financial, retail, media, tech and the transportation industries, among others.
On June 22, Anaplan, Inc. (NYSE:PLAN) was acquired by private equity firm Thoma Bravo in an all-cash transaction worth approximately $10.4 billion. This merger was originally announced in March 2022, and valued PLAN stock at $66 per share.
With 1.37 million shares valued at $89.2 million, Paul Tudor Jones’ stake in Anaplan, Inc. (NYSE:PLAN) amounted to 2.08% of his total Q1 portfolio. This was a massive increase over the previous quarter, when the investor owned just 28,000 shares of the firm.
47 hedge funds were long Anaplan, Inc. (NYSE:PLAN) at the end of March, with combined holdings worth $2.43 billion. The firm’s largest shareholder in the first quarter of 2022 was Sculptor Capital with a nearly $345 million stake.
Alger, an investment management firm, talked about the business model and performance of Anaplan, Inc. (NYSE:PLAN) in its Q1 2021 investor letter. Here’s what it said:
“Anaplan, Inc. was among the top detractors from performance. Anaplan is a leading provider of cloud-based business planning software. Anaplan’s software platform aims to solve the most complex planning needs of large global enterprises across various business lines. Unlike traditional business planning software, which is often rigid, siloed and opaque, Anaplan’s platform is designed to enable broader enterprise participation and better workforce collaboration during the business planning process. Through better planning, large enterprises can more effectively allocate resources to cut costs and generate revenue. Today Anaplan has over 1,600 customers across a variety of end markets and business use cases.
Anaplan shares underperformed in the first quarter as part of a broader sector rotation as high-growth software stocks fell out of favor relative to more cyclically exposed investment opportunities. We believe Anaplan’s focus on growth over near-term profit generation negatively impacts the company’s stock in a rising interest rate environment.
Fundamentally, Anaplan had strong fourth quarter earnings result, with the company seeing an acceleration of billings growth and a strong demand pipeline as companies realize the need for a more flexible digital planning solution.”
1. Cerner Corporation (NASDAQ:CERN)
Tudor Investment Corp’s Stake Value: $102.50 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 2.40%
Number of Hedge Fund Holders: 64
Cerner Corporation (NASDAQ:CERN) was the biggest holding in the first-quarter portfolio of Paul Tudor Jones, who owned 1.09 million shares of the firm valued at $102.5 million. The company is a provider of information technology solutions to the healthcare industry. On June 8, cloud giant Oracle Corporation (NYSE:ORCL) completed its $28.4 billion acquisition of Cerner Corporation (NASDAQ:CERN) at $95 per share.
Out of the 912 hedge funds tracked by Insider Monkey at the close of the first quarter, 64 reported bullish bets on Cerner Corporation (NASDAQ:CERN) shares, up from 61 hedge funds a quarter earlier. The company’s largest shareholder was Millennium Management, with a $517 million stake, which was recently hiked by 124%.
Here is what Cooper Investors, an investment management firm, had to say about Cerner Corporation (NASDAQ:CERN) in its Q1 2021 investor letter:
“The investment in Cerner, made just over a year ago, was based on what we perceived to be a Low-Risk Turnaround opportunity as a refreshed management team sought to increase margins, reduce capex and utilize balance sheet latency with buybacks and acquisitions. Taking account of the tough 2020 for Cerner’s hospital client base the company did a reasonable job executing on these initiatives. However, moving into 2021 more recent observations around intentionality and focus led to a reassessment of the investment proposition, particularly relative to the portfolio’s other technology and software investments.”
You can also take a look at Seth Klarman’s Top 10 Stock Picks and Cathie Wood’s Thoughts on the Future, ARK’s Portfolio and Latest Stock Picks.
