In this article, we discuss 5 new stock picks of billionaire Paul Tudor Jones. If you want to see more new additions to his portfolio, click 10 New Stock Picks of Billionaire Paul Tudor Jones.
5. Abbott Laboratories (NYSE:ABT)
Number of Hedge Fund Holders: 68
Abbott Laboratories (NYSE:ABT) was founded in 1888 and is based in North Chicago, Illinois. It is a healthcare company operating via Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices segments. Paul Tudor Jones added Abbott Laboratories (NYSE:ABT) to his Q1 holdings by purchasing 93,944 shares of the company, worth $11.1 million.
On April 20, Abbott Laboratories (NYSE:ABT) posted its Q1 results, announcing an EPS of $1.73, beating market estimates by $0.27. The revenue of $11.90 billion also outperformed Street estimates by $898.71 million. Abbott Laboratories (NYSE:ABT) is a reliable dividend king, with consistent dividend increases stretching back 50 years.
Citi analyst Joanne Wuensch on May 17 lowered the price target on Abbott Laboratories (NYSE:ABT) to $125 from $154 and reaffirmed a Buy rating on the shares. As per the analyst, market multiples are shrinking due to soaring inflation, slowing growth, and higher interest rates. The fate of medical technology firms amid the current market remains uncertain, Wuensch told investors.
According to Insider Monkey’s Q1 data, Abbott Laboratories (NYSE:ABT) was found in 68 hedge fund portfolios, compared to 64 funds in the preceding quarter. Ken Fisher’s Fisher Asset Management is the biggest shareholder of the company, with more than 9 million shares exceeding $1 billion in value.
Here is what Richie Capital Group has to say about Abbott Laboratories (NYSE:ABT) in its Q4 2021 investor letter:
“Abbott Labs (ABT – up 20.08%) – Abbott Labs continues to benefit from resurging demand for Covid testing kits. The company is planning to increase their monthly production of BinaxNOW athome rapid tests to 100M a month, a 43% increase from current levels.”
4. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 136
Mastercard Incorporated (NYSE:MA) was a new arrival in billionaire Paul Tudor Jones’ Q1 portfolio. Jones, via Tudor Investment Corp, purchased 3,002 shares of the company, valued at over $1 million. Mastercard Incorporated (NYSE:MA) is one of the most prominent American fintech firms, enabling card-based transactions and digital financial solutions worldwide.
On April 28, Mastercard Incorporated (NYSE:MA) announced its Q1 results, reporting earnings per share of $2.76, beating market consensus by $0.60. The revenue grew 24.36% year-over-year to $5.17 billion, outperforming analysts’ predictions by $267.59 million.
Goldman Sachs analyst Will Nance on May 17 initiated coverage of Mastercard Incorporated (NYSE:MA) with a Buy rating and a $460 price target, implying 38% upside. The analyst noted that after “lackluster returns in 2021 and a choppy start to 2022”, he is “constructive” on the payments space, observing relative valuations have fallen prominently over the last six months. He believes the companies are positioned well to navigate a low-growth, inflationary world, the analyst added.
Mastercard Incorporated (NYSE:MA) was part of 136 public stock portfolios in Q1 2022, compared to 144 funds in the prior quarter. Charles Akre’s Akre Capital Management disclosed a $2 billion Mastercard Incorporated (NYSE:MA) stake in the first fiscal quarter of 2022.
Here is what Saturna Capital Amana Funds has to say about Mastercard Incorporated (NYSE:MA) in its Q4 2021 investor letter:
“Given the likelihood of rising inflation and interest rates ahead, we anticipate adjustments to the portfolio to reduce exposure to highly valued stocks dependent on low interest rates to support terminal year valuations, while seeking investments in companies more correlated with a return to economic normalcy. We sold our position in Mastercard. Although Mastercard does not charge or collect interest, its association with credit activities was problematic.”
3. Broadcom Inc. (NASDAQ:AVGO)
Number of Hedge Fund Holders: 71
Broadcom Inc. (NASDAQ:AVGO) is a California-based semiconductor and infrastructure software company. In Q1 2022, Paul Tudor Jones’ Tudor Investment Corp added Broadcom Inc. (NASDAQ:AVGO) to its portfolio by acquiring 4,579 shares worth $2.8 million.
On May 23, Broadcom Inc. (NASDAQ:AVGO) disclosed that it plans to pay around $140 per share for the acquisition of VMware, Inc. (NYSE:VMW). The total transaction would be worth about $60 billion. Upon this announcement, VMWare shares soared 25%, while Broadcom Inc. (NASDAQ:AVGO) stock slipped 3.1%. Mizuho analyst Vijay Rakesh on May 24 reiterated a Buy rating on Broadcom Inc. (NASDAQ:AVGO) with a $700 price target after reports that the company is in talks to acquire VMware.
Among the hedge funds tracked by Insider Monkey, 71 funds were bullish on Broadcom Inc. (NASDAQ:AVGO) at the end of March 2022, up from 62 funds in the last quarter of 2021. Cantillon Capital Management reported a significant stake in the company, comprising more than 1 million shares worth $652.18 million.
Here is what ClearBridge Investments Sustainability Leaders Strategy has to say about Broadcom Inc. (NASDAQ:AVGO) in its Q4 2021 investor letter:
“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”
2. Visa Inc. (NYSE:V)
Number of Hedge Fund Holders: 159
Visa Inc. (NYSE:V) is one of the most prominent American payments technology firms. Billionaire Paul Tudor Jones acquired a stake in Visa Inc. (NYSE:V) during the first quarter of 2022, buying 20,702 shares worth about $4.6 million. On April 26, Visa Inc. (NYSE:V) posted above consensus earnings and revenue for Q1, coming in at $1.79 and $7.19 billion respectively.
On May 17, Goldman Sachs analyst Will Nance initiated coverage of Visa Inc. (NYSE:V) with a Buy rating and a $282 price target, implying 43% upside. The analyst also added the shares to the firm’s Americas Conviction List. He sees Visa Inc. (NYSE:V) as the global leader in payments with “attractive leverage to the long-term secular growth driver from payment electronification”.
Among the hedge funds tracked by Insider Monkey, 159 funds were bullish on Visa Inc. (NYSE:V) at the end of March 2022, up from 142 funds in the preceding quarter. Chris Hohn’s TCI Fund Management is a prominent shareholder of the company, with almost 20 million shares worth $4.4 billion.
Here is what Baron Durable Advantage Fund has to say about Visa Inc. (NYSE:V) in its Q1 2022 investor letter:
“Shares of global payment network Visa, Inc. (NYSE:V) were up 2.5% on strong quarterly results with 24% revenue growth and 27% EPS growth. Payment volume grew 20% with notable strength in cross-border volumes as travel activity rebounded from depressed levels. Management raised full-year guidance to reflect high-teens revenue growth. Shares also likely benefited from a “flight to safety” during a volatile quarter for equities. We continue to own the stock due to Visa’s long runway for growth underpinned by the continued migration from cash transactions to card/digital and strong competitive advantages, operating in a duopoly with Mastercard.”
1. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
Coinbase Global, Inc. (NASDAQ:COIN) was founded in 2012 and is based in Wilmington, Delaware. The company provides financial infrastructure and technology for the global crypto universe. Paul Tudor Jones added Coinbase Global, Inc. (NASDAQ:COIN) to his portfolio by purchasing 1,167 shares worth $222,000.
On May 24, MoffettNathanson analyst Lisa Ellis maintained a Buy recommendation on Coinbase Global, Inc. (NASDAQ:COIN) but slashed the price target on the stock to $200 from $600 after updating her valuation to account for a revised outlook for the company, as well as market conditions. She is assuming the difficult crypto cycle will continue in 2022, with Coinbase Global, Inc. (NASDAQ:COIN)’s trading volumes down 70% year-over-year and total revenue declining 50% year-over-year. She is also assuming 2023 will be mostly flat like 2022, with crypto reaccelerating in 2024 and projects that 2025 will be the peak year of the present cryptocurrency cycle.
According to Insider Monkey’s Q1 data, 46 hedge funds were bullish on Coinbase Global, Inc. (NASDAQ:COIN), compared to 57 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the leading shareholder of the company, with almost 7 million shares worth $1.3 billion.
Here is what Longleaf Partners Fund has to say about Coinbase Global, Inc. (NASDAQ:COIN) in its Q4 2021 investor letter:
“We also have seen plenty of IPO/SPAC craziness showing both that private players need public markets more than they admit and that there is more volatility embedded in these newer companies than a private quarterly mark might admit. As for how efficient both the private and public markets are, we would encourage you to really delve into some of those multi-hundred-page S1s for many of the newest public companies to see the huge gap between the last valuation at which the company was funded and/or granted shares to its executives and the often much higher price at which the company went public – Coinbase is a prime example.”
You can also take a look at 10 Consumer Technology Stocks to Invest In According to Ken Fisher’s Fisher Asset Management and Top 9 Stocks Billionaire Larry Robbins Just Added to His Portfolio.
