In this article, we discuss the 5 stocks to invest in according to billionaire Paul Tudor Jones. If you want to read our detailed analysis of Jones’ history, investment philosophy, and hedge fund performance, and go directly to see the 10 Stocks to Invest in According to Billionaire Paul Tudor Jones.
5. Navistar International Corporation (NYSE: NAV)
Tudor Investment Corp’s Stake Value: $89,601,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.69%
Number of Hedge Fund Holders: 22
Navistar International Corporation (NYSE: NAV) is an American holding company that, along with its subsidiaries, produces commercial trucks and buses, diesel engines, and buses under the IC Bus brand. On July 1, Navistar International Corporation (NYSE: NAV) became a wholly-owned subsidiary of Traton Group, and therefore part of the Volkswagen Group.
Tudor Investment Corp holds over 2 million shares in Navistar International Corporation (NYSE: NAV), worth $89.6 million. The hedge fund increased its activity in the company by 28% in the second quarter. Navistar International Corporation (NYSE: NAV) accounts for 1.69% of the fund’s 13F portfolio. in Q2 2021, Navistar International Corporation (NYSE: NAV) posted revenue of $2.2 billion, up from $1.9 billion during the same period last year.
As of Q2 2021, 22 hedge funds tracked by Insider Monkey have positions in Navistar International Corporation (NYSE: NAV), up from 21 in the previous quarter. The total value of these stakes is over $1.36 billion.
4. Materials Select Sector SPDR Fund (NYSE: XLB)
Tudor Investment Corp’s Stake Value: $92,867,000
Percent of Tudor Investment Corp’s 13F Portfolio:1.75%
Number of Hedge Fund Holders: 18
Materials Select Sector SPDR Fund (NYSE: XLB) is an exchange-traded fund managed by SSGA Funds Management, Inc. The fund mainly focuses on the price and yield performance of the material sector of the U.S.
Tudor Investment Corp holds over 2.5 million shares in Materials Select Sector SPDR Fund (NYSE: XLB), worth $92.8 million. The exchange-traded fund accounts for 1.75% of the hedge fund’s 13F portfolio. Since the beginning of the year, Materials Select Sector SPDR Fund (NYSE: XLB) has delivered a 16.8% return to shareholders, while its 12-month returns are up by 33.03%.
As of Q2 2021, 18 hedge funds tracked by Insider Monkey have positions in Materials Select Sector SPDR Fund (NYSE: XLB), up from 16 in the previous quarter.
3. PPD, Inc. (NASDAQ: PPD)
Tudor Investment Corp’s Stake Value: $115,323,000
Percent of Tudor Investment Corp’s 13F Portfolio: 2.17%
Number of Hedge Fund Holders: 37
Pharmaceutical Product Development, commonly known as PPD, Inc. (NASDAQ: PPD) is a contract research organization that provides services in integrated drug development, laboratory, and lifecycle management.
Tudor Investment Corp has over 2.5 million shares in PPD, Inc. (NASDAQ: PPD), worth $115.3 million. The stock is one of the newest acquisitions of the hedge fund and accounts for 2.15% of its 13F portfolio. In Q2 2021, PPD, Inc. (NASDAQ: PPD) reported an EPS of $0.39, beating the consensus by $0.04. The company’s revenue stood at $1.56 billion, presenting a 55.8% year-over-year growth. In April, JPMorgan lifted its price target on PPD, Inc. (NASDAQ: PPD) to $48. Since the beginning of the year. The stock has delivered a 34.4% return to shareholders, while its 12-month returns are up by 39.5%.
As of Q2 2021, 37 hedge funds have positions in PPD, Inc. (NASDAQ: PPD), up from 29 in the previous quarter. The total value of these stakes is over $1.9 billion.
DEVON Equity Management recently published its second-quarter 2021 investor letter and mentioned PPD, Inc. (NASDAQ: PPD) in it. Here is what the firm has to say:
“…We expect the ~US$4bn of ‘excess’ free cash flow generated from COVID related business to be reinvested into high returning businesses with a more sustainable earnings profile. This is already evident in Thermo’s strong M&A activity YTD, culminating in the US$20bn acquisition of PPD (PPD US).
PPD is a top tier CRO (Contract Research Organisation) which has been in and out of private equity ownership in recent times. To oversimplify, CRO’s effectively provide ‘outsourced’ R&D services across the entire customer spectrum (from big pharma to early stage biotech). Their value proposition varies slightly be customer, but ultimately comes down to quality of drug discovery / development and accelerating time to market (i.e. ‘Return on R&D investment’). CROs must stack up well on this metric vs in-house R&D spend, otherwise Firms would simply keep the spend 100% internal.”
2. Nuance Communications, Inc. (NASDAQ: NUAN)
Tudor Investment’s Corp Stake Value: $138,449,000
Percent of Tudor Investment Corp’s 13F Portfolio: 2.61%
Number of Hedge Fund Holders: 72
Nuance Communications, Inc. (NASDAQ: NUAN) is an American computer software company that specializes in speech recognition and AI software. Over 10k healthcare organizations worldwide use Nuance Communications, Inc. (NASDAQ: NUAN). It stands second on our list of the best stocks to invest in according to billionaire Paul Tudor Jones.
Tudor Investment Corp holds over 2.5 million shares of Nuance Communications, Inc. (NASDAQ: NUAN), worth $138.4 million. In Q2, the fund increased its position in the company by 6674% and it constitutes 2.61% of the fund’s 13F portfolio. In Q3 2021, Nuance Communications, Inc. (NASDAQ: NUAN) reported an EPS of $0.16 and revenue of $336.6 million, up from 298.6 million during the same period last year. On April 12, the company has entered into an agreement with Microsoft Corporation (NASDAQ: MSFT) to combine solutions to deliver new cloud and AI capabilities across the healthcare industry. Nuance Communications, Inc. (NASDAQ: NUAN) has gained 88.11% in the past year.
In May, JPMorgan lifted its price target on Nuance Communications, Inc. (NASDAQ: NUAN) to $56, with an ‘Equal Weight’ rating on the shares. The number of hedge funds having stakes in Nuance Communications, Inc. (NASDAQ: NUAN) also increased as 72 funds have positions in the company as of Q2 2021, up from 57 in the previous quarter. The total value of these stakes in over $5.5 billion.
ClearBridge Investments recently released its Q2 2021 investor letter and mentioned Nuance Communications, Inc. (NASDAQ: NUAN) in it. Here is what the firm has to say:
“In general, improving growth companies are taking specific actions to enhance their growth profiles going forward, whether through a restructuring, business model change, new management team or more productive use of assets. Another recent example is Nuance Communications, which was simplified and reorganized under new leadership in 2018 and subsequently acquired by Microsoft for a significant premium this quarter. This continues the Strategy’s long track record of positioning successfully to benefit from consolidation, with more than 80 companies having been acquired since inception.”
1. Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN)
Tudor Investment Corp’s Stake Value: $166,782,000
Percent of Tudor Investment Corp’s 13F Portfolio: 3.15%
Number of Hedge Fund Holders: 69
Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) is an American pharmaceutical company that focuses on patients affected by rare diseases. On July 6, AstraZeneca PLC (NASDAQ: AZN) received approval from the European Commission for its acquisition of the company in a $39 billion deal. The new unit is named ‘Alexion, AstraZeneca Rare Disease’ and is based in Boston, U.S.
Tudor Investment Corp holds 907,855 shares in Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), worth over $166.7 million. The company represents 3.15% of the fund’s portfolio. In the second quarter of 2021, Tudor Investment Corp increased its activity in Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) by 73%. The company’s acquisition by AstraZeneca PLC (NASDAQ: AZN) marks its entry into medicines for rare diseases, especially conditions involving immune systems. In May, Oppenheimer upgraded Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN) to ‘Outperform’, with a $250 price target.
As of Q2 2021, 69 hedge funds have positions in Alexion Pharmaceuticals, Inc. (NASDAQ: ALXN), worth over $10 billion.
You can also take a look at 10 Best Dividend Aristocrats to Buy According to Hedge Funds and 10 Best Dividend Stocks to Buy According to John Khoury’s Long Pond Capital
