In this article, we discuss billionaire Paul Tudor Jones’ top 5 stock picks. For Jones’ investment philosophy and his comments on certain stocks please see Billionaire Paul Tudor Jones’ Top 10 Stock Picks.
5. Liberty Broadband Corporation (NASDAQ: LBRDA)
Value: $72,711,000
Percent of Paul Tudor Jones’ 13F Portfolio: 2.05%
Number of Hedge Fund Holders: 26
Liberty Broadband ranks 5th on the list of billionaire Paul Tudor Jones’ top 10 stock picks. The telecom and cable company owns interests in Charter Communications, Inc. (Charter) and its subsidiary Skyhook Holding, Inc. (Skyhook). In October 2020, Citibank reaffirmed its Buy rating for the stock, citing increased quarterly buybacks. The firm set a $735 price target on the stock. In the fourth quarter, Liberty’s revenue jumped 870% to $33.87 million. The company completed the acquisition of GCI Liberty in December.
Tudor Investment Corp. currently owns 459,121 shares of LBRDA, worth $72.7 million. Liberty Broadband Corp. occupies 2.05% of Tudor Investment Corp.’s overall equity.
Andvari Associates said in their Q4 letter that one of their holdings, Liberty Broadband Corporation (NASDAQ: LBRDA), had a notable acquisition last year. Here is what Andvari Associates has to say about Liberty Broadband Corporation in their investor letter:
“The most notable event in Andvari portfolios was one holding, Liberty Broadband, acquiring another holding, GCI Liberty. This was an all-share transaction. Andvari supported it. Broadband is now over 20% of Andvari’s assets under management.
Like Broadband’s management, we believe the transaction creates meaningful value. First, the two companies generate immediate savings from duplicative public company and overhead costs. Most importantly, the transaction means Broadband has a 25% stake in Charter Communications (the second-largest cable operator in the U.S. by subscribers) and also owns 100% of GCI.
GCI is Alaska’s largest communication company with over $900 million in annual revenues and capable of producing $150 million in free cash flow. With access to a cash producing asset in GCI, Broadband has greater flexibility to deploy capital. In fact, after the announcement of the deal last August, Broadband increased its share repurchase authorization from $200 million to $1.2 billion. Broadband remains an attractive investment and Andvari looks forward to many more years as shareholders.”
4. Grubhub Inc. (NYSE: GRUB)
Value: $84,143,000
Percent of Paul Tudor Jones’ 13F Portfolio: 2.37%
Number of Hedge Fund Holders: 38
Grubhub provides an online platform for food pick-up and delivery orders. The stock ranks 4th in billionaire Paul Tudor Jones’ Q4 portfolio, as his hedge fund upped its stake in the company by 70%. The fund owns 1.13 million shares of the company, worth over $84.14 million. The Illinois-based company serves over 31 million active diners, and delivers 658,000 daily orders. Last year, European food delivery company Just Eat Takeaway bought Grubhub for $7.3 billion in stock.
With a $295.9 million stake in Grubhub, Pentwater Capital Management owns 3.98 million shares of the company as of the end of the fourth quarter of 2020. Our database shows that 38 hedge funds held stakes in Grubhub as of the end of the fourth quarter, versus 49 funds in the third quarter.
3. Slack Technologies, Inc. (NYSE: WORK)
Value: $93,448,000
Percent of Paul Tudor Jones’ 13F Portfolio: 2.64%
Number of Hedge Fund Holders: 66
Collaboration software Slack ranks 3rd in billionaire Paul Tudor Jones’ portfolio as of the end of the fourth quarter of 2020. The billionaire’s hedge fund increased its hold in the company by 1845% in the fourth quarter, ending the period with 2.2 million shares of the company, worth $93.45 million. Last year, CRM giant Salesforce said it would buy Slack for $27.7 billion. Earlier this year, the U.S. Justice Department’s Antitrust Division requested more information from the two companies on the merger.
Pentwater Capital Management is one of the 66 hedge funds tracked by Insider Monkey having stakes in WORK at the end of the fourth quarter. The fund owns over 18.1 million shares of the company.
RV Capital, in their Q4 2020 investor letter, said that they saw a spectacular value in Slack Technologies, Inc. (NYSE: WORK) and acquired a position in the company. Here is what RV Capital has to say about Slack Technologies, Inc. in their investor letter:
“We became co-owners in Slack, a channels-based communication service for businesses. In an unexpected twist, a few months later it was acquired by Salesforce.com at roughly a 50% premium to what we had paid.
In accordance with my usual practice, I was planning on writing about our investment in Slack. By laying out my investment hypothesis at the onset of an investment, I hope to enable investors to assess in hindsight whether it worked (or not) because of a plausible investment philosophy consistently applied. Given that Slack has effectively already played out as an investment, this rationale has gone. After all, anyone can make a successful investment decision look smart after the fact.
There is one element of my Slack investment thesis that I would like to lay out as it neatly illustrates an idea in my first-half letter and has not yet played out. I wrote then that I wanted to invest more in “early-stage, listed companies”. What I meant by this are companies whose moat is not yet fully developed, but not so undeveloped that it is difficult to say if they will ever have one. I described early-stage companies as possessing:
The kernel of an idea (however unformed), which – if you squint – you can imagine creating a new paradigm in decades to come.
Slack was the type of company I had in mind when I wrote this. Its moat in its core business of providing channels-based communication within companies is well developed. It benefits from a network effect (the more employees on Slack, the higher the value they derive from it), a broad developer ecosystem (thousands of integrations have been built for Slack) and switching costs (Slack becomes tightly interwoven into a company’s workflow through said integrations).
What really got me excited – the new paradigm – is “Slack Connect”. Connect is a feature that allows companies to extend Slack beyond their own organisation to external partners. Connect has not yet achieved viral growth – the moat is not yet developed.”
2. C3.ai, Inc. (NYSE: AI)
Value: $104,063,000
Percent of Paul Tudor Jones’ 13F Portfolio: 2.94%
Number of Hedge Fund Holders: 37
Paul Tudor Jones initiated a new position in enterprise software company C3.ai Inc in the fourth quarter. Tudor’s hedge fund owns 750,000 shares of the company, worth $104.1 million. The company offers services and platforms to build enterprise-scale AI applications. In the most recent quarter, the company’s subscription revenue jumped 23% year over year to $42.7 million.
A total of 37 hedge funds tracked by Insider Monkey were bullish AI at the end of the fourth quarter. Tudor Investment Corp. currently holds 750,000 shares of C3.ai Inc. that amounts $104.1 million.
1. LVMH Moët Hennessy – Louis Vuitton, Société Européenne (EPA: MC.PA)
Value: $108,498,000
Percent of Paul Tudor Jones’ 13F Portfolio: 3.06%
Tiffany/LVMH tops the list of billionaire Paul Tudor Jones’ top 10 stock picks. Tudor’s Q4 portfolio shows that his hedge fund owns 825,391 shares of the company, worth $108.5 million. French luxury company LVMH acquired Tiffany for $15.8 billion in January 2021.
Tudor Investment Corp. currently holds 825,391 shares of LVMH Moët Hennessy – Louis Vuitton that amounts $108.5 million. LVMH occupies 3.06% of Tudor Investment Corp.’s total portfolio.
You can also take a peek at Tiger Cub Billionaire Stephen Mandel’s Top 10 Stock Picks and David Einhorn’s Top 10 Stock Picks.
