Tudor Cuts Staff, Upends Portfolio As Returns Dip and Redemptions Rise

Tudor Investment Corporation is a Connecticut-based hedge fund founded by billionaire Paul Tudor Jones II in 1980. Mr. Jones, a graduate of the University of Virginia, is famous for his macro trading and bets on swings in interest rates and currencies. Mr. Tudor stands at 308th position on the Forbes list of the richest people in the world, with a total worth of $4.7 billion. As per its latest 13F filing, Tudor Investment manages a portfolio worth $4.71 billion.

While Tudor Investment has a long history of successful investing, it is currently in the midst of tough times. Tudor’s macro money strategy is failing to perform amid changing dynamics in the global economy. Last week, Bloomberg reported that Tudor laid off 15% of its workforce amid losses and investor withdrawals. In a statement, Tudor Investment said that as a result of the changing operating environment, the fund had made some “strategic adjustments” to its staffing, without specifying the number of jobs cut. Amid the dry spell and investor exodus, Paul Tudor Jones, in his fund’s latest letter to investors, pledged to manage a big chunk of their money himself. Having that in mind, let’s see some of the biggest moves by Tudor Investment Corporation during the second quarter, as revealed in its latest 13F filing.

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Hologic, Inc. (NASDAQ:HOLX)

– Shares Owned by Tudor Investment Corporation (as of June 30): 1.31 million

– Value of Tudor Investment Corporation’s Holding (as of June 30): $45.35 million

Tudor Investment acquired over 1.26 million shares of Massachusetts-based women’s health products company Hologic, Inc. (NASDAQ:HOLX) during the second quarter, ending the period with a stake worth around $45.35 million. Hologic has recently been awarded $4.1 million by the US Department of Health and Human Service for the development of a blood-screening test to detect the Zika virus. The company reported third quarter of fiscal year 2016 EPS of $0.51 on $717 million in revenue, above the estimates of $0.48 in EPS and $704.27 million in revenue. The stock is down by 0.90% year-to-date. Arthur B Cohen and Joseph Healey’s Healthcor Management LP owns 4.00 million shares of Hologic, Inc. (NASDAQ:HOLX) as of the end of the second quarter.

Express Scripts Holding Company (NASDAQ:ESRX)

– Shares Owned by Tudor Investment Corporation (as of June 30): 526,800

– Value of Tudor Investment Corporation’s Holding (as of June 30): $39.93 million

Tudor Investment increased its holding in Express Scripts Holding Company (NASDAQ:ESRX) by a lofty 822% during the second quarter, adding 469,664 shares of the company to its equity portfolio. Earlier this month, Express Scripts released a list of drugs that it will no longer cover in 2017, including Bristol-Myers Squibb Co (NYSE:BMY)’s arthritis medication Orencia, Eli Lilly and Co (NYSE:LLY)’s new psoriasis medication, and Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s Zyclara cream. Jefferies Group cut its price target on Express Scripts to $88 from $98 last month after the company released its second quarter earnings, though it maintained its ‘Buy’ rating on the stock, which has lost over 12% in 2016. At the end of the second quarter, Andy Brown’s Cedar Rock Capital owned around 4.92 million shares of Scripts Holding Company (NASDAQ:ESRX).

On the next page, we’ll discuss three more big purchases made by Tudor Investment in the second quarter.

Visa Inc (NYSE:V)

– Shares Owned by Tudor Investment Corporation (as of June 30): 526,018

– Value of Tudor Investment Corporation’s Holding (as of June 30): $39.01 million

Visa Inc (NYSE:V) was a new addition to Tudor Investment’s portfolio during the three-month period ended June 30, as it acquired 526,018 shares of the California-based payments technology company. Visa closed the acquisition of Visa Europe in its third quarter of fiscal year 2016, which required it taking on $16 billion in debt and realizing a $1.9 billion loss during the fiscal quarter. However, Visa was debt-free before the transaction, which significantly softens its blow. Visa Inc (NYSE:V) earned $0.69 per share during the quarter, better than analysts’ consensus estimate of $0.66, while revenue of $3.63 billion slightly missed the estimates of $3.65 billion. Ken Fisher’s Fisher Asset Management owns 14.82 million shares of the company as of the end of the second quarter.

Post Holdings Inc (NYSE:POST)

– Shares Owned by Tudor Investment Corporation (as of June 30): 381,562

– Value of Tudor Investment Corporation’s Holding (as of June 30): $31.55 million

Tudor Investment acquired 374,775 shares of Post Holdings Inc (NYSE:POST) during the second quarter, lifting the total worth of its stake to $31.55 million, which accounts for about 0.67% of the value of the hedge fund’s equity portfolio. The Missouri-based packaged goods company reported fiscal year 2016 third quarter EPS of $0.62 on $1.25 billion in revenue, versus the consensus estimates of $0.49 and $1.26 billion respectively. The company also reaffirmed its fiscal year 2016 adjusted EBITDA guidance of $915 million-to-$925 million. The stock is up by over 37% year-to-date. Jason Karp’s Tourbillon Capital Partners owns over 3.04 million shares of the company as of the end of June.

PrivateBancorp Inc (NASDAQ:PVTB)

– Shares Owned by Tudor Investment Corporation (as of June 30): 629,300

– Value of Tudor Investment Corporation’s Holding (as of June 30): $27.70 million

Tudor Investment bought 622,900 shares of commercial and private bank services company PrivateBancorp Inc (NASDAQ:PVTB) during the second quarter, ending the period with 629,300 shares of the company worth $27.70 million. In June, PrivateBancorp agreed to be acquired by Canadian Imperial Bank of Commerce for approximately $3.8 billion in cash and stock. PrivateBancorp’s CEO Larry Richman thinks that the bank will be in a good position to expand its relationships with existing clients and explore new client and business opportunities after the merger’s completion. Neil Chriss’ Hutchin Hill Capital owns over 1.81 million shares of PrivateBancorp Inc (NASDAQ:PVTB) as of June 30.

Disclosure: None