Tudor Investment Corporation is an investment firm based out of Stamford Connecticut, United States. It is headed by the billionaire Mr. Paul Tudor Jones, who is a towering figure in the investment world and has become a billionaire over the course of the four decades that he has spent at Tudor Investment after setting the firm up in 1980.
Mr. Jones received his undergraduate degree in economics from the University of Virginia in 1976, and immediately after graduating, he decided to take the plunge into the financial world. The now billionaire hedge fund executive, whose net worth by March 2022 stood at a whopping $7.3 billion according to Forbes Magazine, started out as a commodities trader on the New York Stock Exchange. The executive would spend more time at the exchange later during his career when he became the NYSE’s chairman in 1992 – a role he would continue to serve in until 1995.
Prior to leading one of the largest exchanges in the world, Mr. Tudor would set up what is known today as the Tudor Investment Corporation. The firm’s first clients would be the executive’s close associates during his time at the NYSE. He would go on to utilize his experience as a commodities trader at the hedge fund as well, and Mr. Jones’s first big break came after he successfully predicted the infamous Black Monday stock market crash of 1987. The investor would profit from the event, through what is known as short selling, in which an investor bets against a stock with the hopes that the share price depreciates instead of appreciating.
Over the years, Tudor Investment has grown its portfolio, and its most recent value stands at $5.9 billion as of the fourth quarter of last year. The firm describes its investment strategy as a combination of an analysis of the state of global markets and “model-driven” approaches.
Out of the countless companies that are present in Tudor Investment’s diverse portfolio, in this piece we will zoom in on the firm’s finance and investment holdings. The top three investments in this category are in American National Group, Inc. (NASDAQ:ANAT), B. Riley Financial, Inc. (NASDAQ:RILY), and TriState Capital Holdings, Inc. (NASDAQ:TSC). Accompanying these are some other, non-financial names in the portfolio including Apple Inc. (NASDAQ:AAPL), NIKE, Inc. (NYSE:NKE), and NVIDIA Corporation (NASDAQ:NVDA).
Our Methodology
In order to pick out Mr. Tudor and his firm’s top finance and investment stocks, we sifted through Tudor Investment’s filings with the Securities and Exchange Commission for the fourth quarter of last year. This enabled us to select the top finance and investment firms. Then, we took a look at the state of these companies by evaluating their earnings reports, analyst coverage, large investor holdings, investor letters, and hedge fund sentiment gleaned through Insider Monkey’s survey of 924 hedge funds for Q4 2021.
10. Morgan Stanley (NYSE:MS)
Tudor Investment Corp’s Stake Value: $14 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.24%
Number of Hedge Fund Holders: 67
Morgan Stanley (NYSE:MS) is one of the world’s largest financial institutions. The financial holding company provides services to governments, corporations, individuals, and financial institutions. These include wealth management, financial advisory, debt underwriting, share underwriting, and others.
Mr. Tudor’s investment firm owned 152,149 Morgan Stanley shares as the fourth quarter of last year came to an end. These were worth $14 million and represented 0.24% of its investment portfolio. An Insider Monkey survey of 924 hedge funds for the same time period revealed that 67 had also owned a stake in the company.
Morgan Stanley earned $14.5 billion in revenue and $2.08 in non-GAAP EPS for its fourth fiscal quarter, in a mixed bag of results that saw it beat analyst estimates for EPS and miss them for revenue. Odeon Capital downgraded the firm’s share price rating to Hold and kept a $108.85 price target in January 2022, outlining that the decision was based solely on announcements by the Federal Reserve.
Morgan Stanley’s largest investor is Boykin Curry’s Eagle Capital Management which owns 14.5 million shares worth $1.4 billion.
Artisan Partners mentioned the firm in its third quarter 2021 investor letter. Here is what the fund said:
“Morgan Stanley, a leading global financial services company, came into the portfolio in late 2020 as a result of its purchase of E*TRADE. The acquisition is a great fit for Morgan Stanley’s wealth management platform and provides a considerable amount of non-interest-bearing deposit funding. James Gorman, chairman and CEO, has steadily derisked the business by adding less volatile fee streams to complement its leading positions in cyclical businesses such as advisory, equities and FICC (fixed income, currencies and commodities). We believe the company will prove its resiliency and value over the long term.”
Morgan Stanley meets NIKE, Inc., Apple Inc., and NVIDIA Corporation in the list of Tudor Investment’s top stocks.
9. First Industrial Realty Trust, Inc. (NYSE:FR)
Tudor Investment Corp’s Stake Value: $15.7 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 28
First Industrial Realty Trust, Inc. (NYSE:FR) is a real estate investment trust (REIT). It owns, operates, and develops industrial real estate properties. The company is headquartered in Chicago, Illinois, United States and its properties include warehouses and other industrial facilities.
First Industrial Realty Trust, Inc. brought in $121 million in revenue and $0.52 in FFO for its fiscal Q4, beating analyst FFO estimates only. Mizuho increased its share price target to $64 from $54 in January 2022, outlining that the company can improve on several fronts.
Tudor Investment Corporation owned 237,170 First Industrial Realty Trust, Inc. shares by the end of the fourth quarter of last year. These were worth $15.7 million and represented 0.26% of its investment portfolio. Insider Monkey’s research covering 924 hedge funds in Q4 2021 revealed that 28 had also held stakes in the company.
First Industrial Realty Trust, Inc.’s largest investor is Israel Englander’s Millennium Management. It has a $144 million stake via owning 2 million shares.
8. MetLife, Inc. (NYSE:MET)
Tudor Investment Corp’s Stake Value: $16 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders: 38
MetLife, Inc. (NYSE:MET) is a financial services company that provides life insurance, asset management, and other services all over the globe. Some of its products include dental insurance, legal plans, funding agreements, accounts, and income annuities. It is also one of the oldest companies in the world since it was set up in 1863 and is currently headquartered in the United States.
As the fourth quarter of last year came to an end, Tudor Investment Corporation owned 256,576 MetLife, Inc. shares in a $16 million stake that constituted 0.26% of its investment portfolio. An Insider Monkey survey covering the same time period revealed that 38 out of 924 hedge funds had also held a stake in the company.
By the end of its fourth fiscal quarter, MetLife, Inc. had earned $16.9 billion in revenue and $2.56 in non-GAAP EPS, in a mixed bag of results that saw it miss revenue estimates by a large $760 million but beat those for EPS. Jefferies set a $76 price target for the company in January 2022, stating that the company’s Group Benefits business has the potential for strong organic growth.
Richard S. Pzena’s Pzena Investment Management is MetLife, Inc.’s largest investor. It owns a $330 million stake through 5.2 million shares.
7. Affirm Holdings, Inc. (NASDAQ:AFRM)
Tudor Investment Corp’s Stake Value: $17.9 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.29%
Number of Hedge Fund Holders: 41
Affirm Holdings, Inc. (NASDAQ:AFRM) is a financial services provider which allows its customers to finance their purchases by acting as a collaborator with a bank. The company is headquartered in San Francisco, California.
Affirm Holdings, Inc. raked in $361 million in revenue and -$0.57 in GAAP EPS, managing to beat analyst estimates only for revenue. The company isn’t seeing much love from Wall Street these days, with RBC Capital slashing its price target to $55 from $83, but still keeping an Outperform rating on the shares in March 2022.
Tudor Investment’s stake in Affirm Holdings, Inc. stood at $17.9 million by the end of Q4 2021. It came through owning 178,249 shares and represented 0.29% of its investment portfolio. An Insider Monkey survey for the same time period revealed that 41 out of 924 hedge funds had also owned the company’s shares.
Affirm Holdings, Inc.’s largest investor is Gabriel Plotkin’s Melvin Capital Management which owns 2.7 million shares worth $271 million.
Bireme Capital mentioned the company in its Q4 2021 investor letter, which outlined that:
“We opened a more idiosyncratic short position in a company called Affirm (AFRM) in Q4.
Affirm is a “Buy Now, Pay Later” (BNPL) company founded by former PayPal CTO and cofounder Max Levchin. They provide installment loans to consumers, partnering with retail companies looking to drive higher sales. They have two primary products: a zero-fee installment loan for consumers with the best credit scores, and a more traditional product with 20%+ interest rates for subprime borrowers. Their stated plan is to disrupt the credit industry with more transparent, lower-fee loans.
At a roughly $28b market cap at the start of 2022, AFRM stock was priced at more than 20x trailing sales, a steep price for a money-losing lender. While their early lead in online BNPL transactions and partnerships with fast-growing retailers like Peloton has fueled significant historical growth, a wave of competition has arrived.”
6. Rexford Industrial Realty, Inc. (NYSE:REXR)
Tudor Investment Corp’s Stake Value: $18 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.3%
Number of Hedge Fund Holders: 28
Rexford Industrial Realty, Inc. (NYSE:REXR) is a real estate investment trust that focuses on developing industrial properties. The company has tens of millions of rentable square feet of property. It is headquartered in Los Angeles, California, United States.
As Q4 2021 came to an end, Mr. Tudor’s investment firm had owned 226,891 Rexford Industrial Realty, Inc. shares. These were worth $18 million and represented 0.3% of its investment portfolio. During the same time period, 28 out of 924 hedge funds part of Insider Monkey’s deep dive owned a stake in the company.
Rexford Industrial Realty, Inc. posted strong quarterly results for its fiscal fourth quarter, as it beat analyst estimates for funds from operations (FFO) and revenue. As the quarter came to an end, the firm had $132 million in revenue and $0.45 in FFO. JPMorgan increased the company’s price target to $84 from $78 in December 2021, outlining that the company is focused heavily on growth.
Israel Englander’s Millennium Management is Rexford Industrial Realty, Inc.’s largest investor through owning 1 million shares that are worth $87 million.
Baron Funds mentioned the company in its fourth quarter 2021 investor letter. Here is what the firm said:
“Rexford Industrial Realty, Inc. contributed positively to performance during the fourth quarter. Rexford is a high-growth REIT that owns a portfolio of industrial warehouse properties concentrated in Southern California. Outperformance was driven by continued robust business fundamentals that led to better-than-expected third quarter financial results and raised full-year guidance. Rexford is also seeing accelerating acquisition activity, which is accretive to the company’s profitability.”
Apple Inc., NIKE, Inc., and NVIDIA Corporation are joined by Rexford Industrial Realty, Inc. as one of Mr. Tudor’s top investments.
5. Bill.com Holdings, Inc. (NYSE:BILL)
Tudor Investment Corp’s Stake Value: $18.6 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.31%
Number of Hedge Fund Holders: 65
Bill.com Holdings, Inc. (NYSE:BILL) is a software provider that allows companies to manage their financial operations. It provides a cloud based platform that uses artificial intelligence to foster connectivity between companies, their suppliers, and their clients.
Tudor Investment Corporation owned 74,809 Bill.com Holdings, Inc. shares during the fourth quarter of last year. These were worth $18.6 million and represented 0.31% of its investment portfolio. A Q4 2021 Insider Monkey poll of 924 hedge funds revealed that 65 had owned the company’s shares.
Bill.com Holdings, Inc. raked in $156 million in revenue and $0.00 in non-GAAP EPS for its fiscal Q2, beating analyst estimates for both. BMO Capital raised the company’s price target to $258 from $209 in February 2022, as it stated that not only has the company been posting consecutive quarterly growth, but that its strong earnings came at a time when the industry was struggling.
Bill.com Holdings, Inc.’s largest investor is Alex Sacerdote’s Whale Rock Capital Management which owns 3.4 million shares worth $859 million.
Alger mentioned the company in its fourth quarter 2021 investor letter and outlined that:
“Bill.com Holdings, Inc., was among the top detractors from performance. Bill.com provides cloud-based software solutions that simplify, digitize, and automate complex back-office financial operations for small and medium size businesses. Its software helps customers to generate and process invoices, streamline approvals, send and receive payments, synchronizing data with their accounting system and manage their cash.”
4. MGM Growth Properties LLC (NYSE:MGP)
Tudor Investment Corp’s Stake Value: $21 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.35%
Number of Hedge Fund Holders: 30
MGM Growth Properties LLC (NYSE:MGP) is a real estate investment trust that targets entertainment and leisure properties. These include venues such as casinos, hotels, conventions centers, and others. The company has millions of square footage under its portfolio.
MGM Growth Properties LLC reported $199 million in revenue and $0.60 in FFO for its fiscal fourth quarter, in a strong set of results that saw it beat analyst estimates for both. The company increased its annual dividend in March 2022 by 2 cents.
By the end of Q4 2021, Tudor Investment Corporation owned 524,623 MGM Growth Properties LLC shares which were worth $21 million and represented 0.35% of its investment portfolio. An Insider Monkey poll covering 924 hedge funds for the same time period revealed that 30 had also owned the company’s shares.
MGM Growth Properties LLC’s largest investor is Alec Litowitz and Ross Laser’s Magnetar Capital which owns 3.2 million shares worth $132 million.
3. TriState Capital Holdings, Inc. (NASDAQ:TSC)
Tudor Investment Corp’s Stake Value: $22 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.37%
Number of Hedge Fund Holders: 22
TriState Capital Holdings, Inc. is a bank holding company for the TriState Capital Bank. This bank provides a wide variety of financial services such as accounts, deposit certificates, loans, income advisory services, and online services.
Mr. Tudor’s investment firm owned 750,013 TriState Capital Holdings, Inc. shares as the fourth quarter of last year came to an end. These were worth $22 million and represented 0.37% of its investment portfolio. During the same time period, 22 of the 924 hedge funds surveyed by Insider Monkey had invested in the firm, marking an all time high since 2013.
TriState Capital Holdings, Inc. earned $67 million in revenue and $0.52 in GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. B. Riley increased the bank holding company’s price target from $28 to $31 in October 2021.
Israel Englander’s Millennium Management is TriState Capital Holdings, Inc.’s largest investor. It has a stake that is worth $44 million by owning 1.4 million shares.
2. B. Riley Financial, Inc. (NASDAQ:RILY)
Tudor Investment Corp’s Stake Value: $29.8 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.5%
Number of Hedge Fund Holders: 25
B. Riley Financial, Inc. is an investment banking and financial services provider that is headquartered in the United States. The firm focuses exclusively on corporations, financial institutions, and high net worth individuals as its clients.
By the end of its fourth fiscal quarter, B. Riley Financial, Inc. earned $422 million in revenue and $2.08 in GAAP EPS. The company’s attempt to acquire RV firm Lazydays was rejected by the latter’s board of directors in March 2022, as the board stated that the financial company’s offer undervalued their company.
Tudor Investment had a $29.8 million stake in B. Riley Financial, Inc. by the end of 2021’s final quarter. This came through it owning 336,465 shares and it represented 0.5% of the investment firm’s portfolio. 25 out of the 924 hedge funds polled by Insider Monkey during the same time period also owned the company’s shares.
B. Riley Financial, Inc.’s largest investor is Chuck Royce’s Royce & Associates which owns 371,889 shares worth $33 million.
1. American National Group, Inc. (NASDAQ:ANAT)
Tudor Investment Corp’s Stake Value: $43.9 million
Percentage of Tudor Investment Corp’s 13F Portfolio: 0.73%
Number of Hedge Fund Holders: 23
American National Group, Inc. is an insurance provider headquartered in Galveston, Texas, United States. Its products cover life, property, casualty, and health insurance alongside others.
Mr. Tudor’s investment firm owned 232,673 American National Group, Inc. shares by the end of Q4 2021, which were worth $43 million and represented 0.73% of its investment portfolio. Insider Monkey’s research covering 924 hedge funds for the same time period revealed that 23 had owned a stake in the company.
American National Group, Inc. earned non-GAAP EPS of $2.87 for its fiscal first quarter. The company is being bought by Brookfield National for an all cash transaction that is worth $5.1 billion. The merger is expected to close by the end of the first half of this year.
After Tudor Investment Corporation, Israel Englander’s Millennium Management is American National Group, Inc.’s largest investor. It owns 196,716 shares that are worth $37 million.
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This article is originally published at Insider Monkey.
