In this article, we discuss 5 bargain stocks that billionaire Paul Tudor Jones is buying amid selloff. If you want to see more stocks that were purchased on the dip by the billionaire, click This Billionaire is Buying These 10 Bargain Stocks Amid Selloff.
5. IAC/InterActiveCorp (NASDAQ:IAC)
Number of Hedge Fund Holders: 48
YTD Share Price Decline as of May 26: 38.02%
As of May 26, IAC/InterActiveCorp (NASDAQ:IAC) shares have declined over 38% so far this year. It is one of the most prominent bargain stocks in the Q1 portfolio of billionaire Paul Tudor Jones. He added IAC/InterActiveCorp (NASDAQ:IAC) to his holdings in the March quarter by purchasing 63,118 shares of the company, worth $6.3 million.
On May 11, Cowen analyst John Blackledge cut the price target on IAC/InterActiveCorp (NASDAQ:IAC) to $150 from $180 and maintained an Outperform rating on the shares. The analyst told investors that valuation remains attractive amid its strong results and positive outlook for Angi and Dotdash.
According to Insider Monkey’s data, 48 hedge funds were bullish on IAC/InterActiveCorp (NASDAQ:IAC) at the end of March 2022, with collective stakes worth $1.6 billion, compared to 47 funds in the last quarter, holding stakes in the company valued at about $2 billion. Dennis Hong’s ShawSpring Partners held the largest position in IAC/InterActiveCorp (NASDAQ:IAC), comprising 3.3 million shares worth $332.5 million.
Here is what White Brook Capital has to say about IAC/InterActiveCorp (NASDAQ:IAC) in its Q1 2022 investor letter:
“During the quarter, White Brook exited IAC/InteractiveCorp (IAC) on socially responsible investing grounds. White Brook invested in the Company several years ago and benefitted as the company spun to investors, Match Group, Inc (MTCH) and Vimeo, Inc (VMEO) – stakes which were quickly disposed of. However, in the depths of the pandemic, IAC also invested in MGM Resorts. It was a relatively small investment for the company, and to my understanding at the time represented an opportunistic investment by an opportunistic value investment firm. White Brook noted the transgression of principles, put the company on its “Watch List”, but given the relatively small amount of the value that it represented to IAC as a whole, continued to own the stock. If the MGM holding was relatively transitory and the position relatively small, in my view, like the alcohol content of a freshly juiced orange, it did not taint the whole. The Company’s hiring of the former CFO of the NFL during the first quarter this year, however, was an unmistakable sign that gambling would be a bigger part of their future, and an order to sell was initiated, but due to the price action that day not executed. When they increased their stake in MGM later in the quarter, I accepted the market price at the moment and the order was immediately executed. IAC was a very successful investment for the Fund.”
4. Ball Corporation (NYSE:BALL)
Number of Hedge Fund Holders: 37
YTD Share Price Decline as of May 26: 20.66%
Ball Corporation (NYSE:BALL) is a Colorado-based company that manufactures aluminum packaging products for the beverage, personal care, and household products industries in the United States, Brazil, and internationally. Ball Corporation (NYSE:BALL) is a new arrival in Tudor Investment Corp’s Q1 2022 portfolio, with the hedge fund buying 17,592 shares of the company, worth $1.5 million.
On May 17, Truist analyst Michael Roxland upgraded Ball Corporation (NYSE:BALL) to Buy from Hold with an unchanged price target of $93. The stock has declined 14% since its Q1 earnings outpaced its peers, but there is nothing in the results or guidance that warrants the share price drop since the headwinds are “temporary”, the analyst told investors. He added that the stock now trades at 17.5 to 18-times expected 2022 earnings, which is below the 23 to 24-times earnings multiple over the past 3-4 years.
According to Insider Monkey’s first quarter database, 37 hedge funds were bullish on Ball Corporation (NYSE:BALL), up from 32 funds in the earlier quarter. Richard Chilton’s Chilton Investment Company is the leading shareholder of the company, with 3.6 million shares worth $325.5 million.
Here is what ClearBridge Sustainability Leaders Strategy has to say about Ball Corporation (NYSE:BALL) in its Q3 2021 investor letter:
“Ball, the largest manufacturer of recyclable aluminum beverage cans in North America, bucked headwinds for the materials sector with strong quarterly results and was supported by contracts indicative of further growth.”
3. Affimed N.V. (NASDAQ:AFMD)
Number of Hedge Fund Holders: 16
YTD Share Price Decline as of May 26: 43.10%
Affimed N.V. (NASDAQ:AFMD) is a German clinical-stage biopharmaceutical company, focused on developing cancer immunotherapies in the United States, Germany, and the rest of Europe. Paul Tudor Jones added Affimed N.V. (NASDAQ:AFMD) to his Q1 portfolio by acquiring 14,693 shares worth $64,000. Year-to-date, Affimed N.V. (NASDAQ:AFMD) stock has dropped over 43% as of May 26.
On April 11, Cantor Fitzgerald analyst Li Watsek reiterated an Overweight rating and a $12 price target on Affimed N.V. (NASDAQ:AFMD), stating that the stock remains one of the firm’s top ideas for 2022. The analyst believes the updated data of AFM13 + NK combination lends robust support to the best-case scenario.
The Q1 database of Insider Monkey suggests that 16 hedge funds were long Affimed N.V. (NASDAQ:AFMD), up from 13 funds in the preceding quarter. Steve Cohen’s Point72 Asset Management is the largest stakeholder of the company, with 9.3 million shares valued at about $41 million.
2. Salesforce, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 114
YTD Share Price Decline as of May 26: 36.01%
Salesforce, Inc. (NYSE:CRM) is a California-based technology firm that offers customer relationship management software. Paul Tudor Jones purchased 13,423 shares of Salesforce, Inc. (NYSE:CRM) in Q1 2022, worth $2.85 million. Salesforce, Inc. (NYSE:CRM) is one of the most prominent bargain stocks the billionaire purchased amid selloff.
On May 23, Jefferies analyst Brent Thill cut the price target on Salesforce, Inc. (NYSE:CRM) to $260 from $330 and kept a Buy rating on the shares. The analyst has lowered forecasts across 28 software companies he covers due to challenging economic headwinds and the risk of recession. He believes multiples could shrink beyond the 25% decline already embedded in his new price targets if fundamentals weaken further.
Among the hedge funds tracked by Insider Monkey, 114 funds were long Salesforce, Inc. (NYSE:CRM) at the end of March 2022, compared to 110 funds in the prior quarter. Ken Fisher’s Fisher Asset Management held the biggest position in the company, with 15.2 million shares worth $3.2 billion.
Here is what Vulcan Value Partners has to say about Salesforce, Inc. (NYSE:CRM) in its Q1 2022 investor letter:
“Salesforce.com Inc. is the dominant provider of customer relationship management software and technology. Salesforce has high retention rates, pricing power, high free cash flow, and a competitive moat. The company continues to execute well. Margins decreased slightly during the fourth quarter but continue to be on path for material expansion over the long term. Salesforce is seeing increased spending as employees are returning to the office, and we believe the global pandemic has only improved its prospects.”
1. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 46
YTD Share Price Decline as of May 26: 72.14%
Coinbase Global, Inc. (NASDAQ:COIN) is a Delaware-based company that offers financial infrastructure and technology for the crypto universe globally. Paul Tudor Jones’ Tudor Investment Corp invested in Coinbase Global, Inc. (NASDAQ:COIN) during the first quarter of 2022, buying 1,167 shares, worth $222,000. Amid the broader tech selloff, the stock has tumbled over 72% year-to-date as of May 26.
Cowen analyst Stephen Glagola on May 26 initiated coverage of Coinbase Global, Inc. (NASDAQ:COIN) with an Outperform rating and an $85 price target in a note to investors partially titled “Built To Last”. According to the analyst, Coinbase Global, Inc. (NASDAQ:COIN) has a dominant position in the United States and he expects it to be mainly an exchange/retail brokerage-driven play over the next several years. He believes the company can grow at a double-digit compound annual rate for “the foreseeable future” and that the security infrastructure and regulatory adherence are a tactical advantage compared to global peers.
Among the hedge funds tracked by Insider Monkey, 46 funds were bullish on Coinbase Global, Inc. (NASDAQ:COIN) at the end of Q1 2022, down from 57 funds in the prior quarter. Cathie Wood’s ARK Investment Management is the biggest shareholder of the company, with close to 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 Top 9 Stocks Billionaire Larry Robbins Just Added to His Portfolio and 10 Best Undervalued Large-Cap Stocks According to Hedge Funds.
