Paul Tudor Jones II is the founder of Tudor Investment. As of September 9, 2011, Jones has 701 stocks of total value of 2.583 million with quarter over quarter turnover of 2.6% and a net worth 3.2 billion.
Jones earned an undergraduate degree in economics from University of Virginia in 1976 as well as started to work on the trading floors as a clerk and then became a broker for E.F. Hutton. Then he went to Harvard Business School but realized that he could not learn skills that he needed in life from school. Jones' cousin is William Dunavant Jr., whose Dunavant Enterprises is one of the world's largest cotton merchants, led Jones to work for commodity broker Eli Tullis, who then mentored him in trading cotton futures at the New York Cotton Exchange.
In 1980, Jones founded Tudor Investment Corporation, which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency, and commodity markets. Tudor Investment charges the hedge funds he manages two to three percent higher than the industry standards.
One of Jones' earliest and major successes was predicting Black Monday in 1987 when he tripled his money due to large short positions. Jones was instrumental in the creation of FINEX, the financial futures division of the New York Board of Trade, and in the development of the U.S. dollar index futures contract that trades there. He served as Chairman of the New York Cotton Exchange from August 1992 through June 1995.
Jones futures trading style and beliefs can be summarized with a few guide lines. He does contrarian investing by attempting to buy and sell turning points, and keeps trying the single trade idea until he changes his mind, fundamentally. When he develops an idea, he pursues it from a very-low-risk standpoint until he has been proven wrong repeatedly, or until he changes his viewpoint. Otherwise, he keeps cutting his position size down. Then he trades the smallest amount when his trading is at its worst. Jones is also a swing trader; the best money is made at the market turns. Has missed a lot of meat in the middle, but catches a lot of tops and bottoms. The key is to play great defense, not great offense. Also, never average losers. He has mental stops. If it hits that number, he is out no matter what.
Stocks That Paul Tudor Jones Keeps Buying
No. 1: Comcast Corp. (CMCSA), Weightings: 0.737% - 910,100 SharesComcast Corp., among the world's communication companies, provides basic cable, digital cable and high speed internet services that connect people to what's important in their lives. Comcast Corp. has a market cap of $63.75 billion; its shares were traded at around $23.395 with a P/E ratio of 16.2 and P/S ratio of 1.6. The dividend yield of Comcast Corp. stocks is 2%. Comcast Corp. had an annual average earnings growth of 16.9% over the past 10 years. GuruFocus rated Comcast Corp. the business predictability rank of 2.5-star.
Evidence of a dip comes as CBS, NBC and Fox signed unprecedented nine-year extensions with the NFL on Wednesday, with each network to pay roughly $1 billion a year for the rights. ESPN signed its own eight-year extension with the league, for a package that includes Monday Night Football, in September.
Cable-television operators face a number of challenges in the current environment. The weak economy means that fewer people are moving into new homes, one of the traditional reasons to sign up for pay-TV service. Amid rising cable bills, some subscribers are opting to downgrade their service from a premium-channel heavy lineup to a more basic, cheaper set-up augmented by online video services such as Netflix or Hulu.
Comcast Corp. Chairman and Chief Executive Brian Roberts will pay a $500,000 civil penalty to settle charges that he violated pre-merger reporting and waiting requirements when he acquired Comcast voting stock four years ago, the Department of Justice said Friday. The department's antitrust division filed a civil lawsuit Friday in U.S. District Court in Washington against Roberts for violating the notification requirements of the Hart-Scott-Rodino Act of 1976.
Earlier this month Verizon Wireless, the joint venture between Verizon Communications Inc. and Vodafone plc, paid $3.6 billion for spectrum licenses belonging to SpectrumCo LLC, a joint venture of Comcast Corp., Time Warner Cable, and privately held Bright House Networks. Verizon Wireless’ application for review of the transaction by the Federal Communications Commission could turn out to be much more than either company expected. The US Department of Justice is investigating the spectrum deal to determine whether or not it is anti-competitive and could jeopardize competition in the telecommunications industry. AT&T Inc., Deutsche Telekom AG, and Sprint Nextel Corp. will be watching this very closely.
Paul Tudor Jones owns 910,100 shares of CMCSA, valued as $19 million as of Sep. 30, 2011, which accounts for 0.737% of his equity portfolio. Paul Tudor Jones added his positions in the Jun. 30, 2011 quarter by 2.74%, again in the Sep. 30, 2011 quarter by 5967.33%. He had very few transactions with this stock but those few were massive. In quarter 1 of 2008 Jones had 637,000 shares but no stocks at any time in years surrounding that quarter. He then start purchasing this stock in in late 2009 with 19,000 shares and kept it under 23,000 shares until quarter 3 of 2011 when his position jumped up massively again to the 910,100 shares.
No. 2: Devon Energy Corp. (DVN), Weightings: 0.3281% - 152,900 SharesDevon Energy Corporation is an independent energy company engaged primarily in oil and gas exploration, development and production, and in the acquisition of producing properties. Devon Energy Corp. has a market cap of $24.72 billion; its shares were traded at around $61.21 with a P/E ratio of 10 and P/S ratio of 2.5. The dividend yield of Devon Energy Corp. stocks is 1.1%. Devon has more than $3 billion in cash and some of that will be used for share repurchases.
Frank W Rudolph who is EVP human resources at Devon Energy Corporation, sold 1,200 shares on Dec 13 at $64.83 per share for a total value of $77,792. The shares recently traded at $59.05, down $4.33, or 6.83% since the insider sale.
Paul Tudor Jones owns 152,900 shares of DVN, valued as $8 million as of Sep. 30, 2011, which accounts for 0.3281% of his equity portfolio. Paul Tudor Jones added his positions in the Jun. 30, 2011 quarter by 175.46%, again in the Sep. 30, 2011 quarter by 14.45%. He has had this stock for many years and his position had varied immensely. Jones’s peak was in mid-2008 with 626,000 shares. He is currently gradually increasing his position since the rebuy in late 2010 with only 32,000 shares.
No. 3: Corning Inc. (GLW), Weightings: 0.3029% - 633,048 SharesCorning Incorporated creates leading-edge technologies for the fastest-growing markets of the world's economy. Corning Inc. has a market cap of $19.77 billion; its shares were traded at around $12.58 with a P/E ratio of 6.7 and P/S ratio of 3. The dividend yield of Corning Inc. stocks is 2.4%. Corning Inc. had an annual average earnings growth of 5.2% over the past 5 years. Corning enjoyed quarterly year-over-year revenue growth and quarterly year-over-year earnings growth of 29.50 and 3.30 respectively. Its fractional price to book of 0.96 combines with a healthy return on equity of 16.72 and a high current ratio of 4.61. The volume on Dec 20th was 8,571,503 shares versus a 3-month average volume of 22,202,200 shares.
GLW's current share price is expected to swell to a target share price of $17.00, according to Barclays. The potential for normalization in glass shipments with LCD TV demand coupled with near trough valuation levels, a share buyback program and an improving cash generation profile make this a buy recommendation by Barclays. Also, GLW trades at only a respective 6x and 7.4x past and forward earnings. The company is an outlier by this measure, as the average PE ratio among peers is 14.9 without GLW and 14 with GLW.
Paul Tudor Jones owns 633,048 shares of GLW, valued as $8 million as of Sep. 30, 2011, which accounts for 0.3029% of his equity portfolio. Paul Tudor Jones added his positions in the Jun. 30, 2011 quarter by 118.26%, again in the Sep. 30, 2011 quarter by 2422.1%. He had this stock for brief moments over the last few years 825,000 shares in quarter 3 2006, 5.337 million shares in quarter 2 2007, 405,000 shares in quarter 4 2008, and 25,000 shares quarter 2 2011. Every position was bought in a sudden and then sold out within one quarter.
No. 4: Newfield Exploration Co. (NFX), Weightings: 0.2495% - 162,400 SharesNewfield Exploration Company explores, develops and acquires oil and natural gas properties primarily in the Gulf of Mexico. Newfield Exploration Co. has a market cap of $5.06 billion; its shares were traded at around $37.62 with a P/E ratio of 8.9 and P/S ratio of 2.7. Newfield Exploration Co. had an annual average earnings growth of 5.4% over the past 10 years.
Newfield Exploration Co. announced the signing of a crude oil supply agreement with Tesoro Corporation to provide 18,000 barrels per day of supply capacity at Tesoro's refinery in Salt Lake City, Utah. The new agreement spans a seven-year period, with commitments commencing in 2013, and secures additional supply capacity for Newfield's planned oil growth in the Uinta Basin. The oil price differential associated with this agreement is not materially different than Newfield's current supply contracts in the basin.
Paul Tudor Jones owns 162,400 shares of NFX, valued as $6 million as of Sep. 30, 2011, which accounts for 0.2495% of his equity portfolio. Paul Tudor Jones added his positions in the Jun. 30, 2011 quarter by 178.85%, again in the Sep. 30, 2011 quarter by 24.44%. He had a giant spike in position in mid-2008 437,000 shares, but not much holdings until this year as he gradually increases his position from 47,000 shares at the beginning of 2011.
No. 5: Oracle Corp. (ORCL), Weightings: 0.2137% - 192,100 SharesOracle Corporation is one of the world's suppliers of software for information management. Oracle Corp. has a market cap of $147.15 billion; its shares were traded at around $29.17 with a P/E ratio of 13.4 and P/S ratio of 4.2. The dividend yield of Oracle Corp. stocks is 0.8%. Oracle Corp. had an annual average earnings growth of 19.3% over the past 10 years. GuruFocus rated Oracle Corp. the business predictability rank of 3.5-star.
The company said adjusted earnings for its fiscal second quarter were 54 cents a share, which was three cents a share shy of the FactSet Research consensus estimate. Revenue rose to $8.79 billion from $8.58 billion a year ago. Analysts had been looking for $9.23 billion in sales. Net earnings at Oracle were $2.2 billion, or 43 cents a share, compared with $1.87 billion, or 37 cents a share, a year ago. Oracle also said its board has approved the buyback of an additional $5 billion of common stock in future quarters. But shares of Oracle fell $3.97, or 13.6%, to $25.20 in the wake these results issued late Dec 20 because it fell short of the estimate of $9.2 billion.
Paul Tudor Jones owns 192,100 shares of ORCL, valued as $6 million as of Sep. 30, 2011, which accounts for 0.2137% of his equity portfolio. Paul Tudor Jones added his positions in the Jun. 30, 2011 quarter by 640.63%, again in the Sep. 30, 2011 quarter by 62.11%. He had massive spike in position in quarter 4 2007 with 2 million shares and relatively no position until mid-2011 with the 119,000 shares last quarter and the minimal increase into quarter 3.
No. 6: Sandisk Corp. (SNDK), Weightings: 0.186% - 119,100 SharesSandisk Corporation designs, manufactures, and markets flash memory storage products that are used in a wide variety of electronic systems. Sandisk Corp. has a market cap of $11.74 billion; its shares were traded at around $48.84 with a P/E ratio of 11.4 and P/S ratio of 2.4.
Standard & Poor's Ratings Services upgraded SanDisk Corp.'s credit status a notch closer to investment grade on Dec 20, citing strong demand for the data-storage maker's memory chips. The upgrade comes as other chip makers face tough comparisons in 2012 due to weakening demand for some of their products. By contrast, S&P expects SanDisk will continue to benefit from favorable operating conditions as the proliferation of smartphones, digital music players and other such devices hold up demand for the company's NAND flash memory. S&P now rates the company at double-B, two steps below investment-grade territory. Its outlook is stable. The ratings service expects the company's financial metrics will remain meaningfully stronger than most companies with similar ratings, though the inherent volatility of the memory semiconductor sector will continue to weigh on its credit status. The stock has climbed 15% over the past three months.
Sanjay Mehrotra who is President/CEO at SanDisk Corp., sold 10,000 shares on Dec 09 at $50.08 per share for a total value of $500,788. The shares recently traded at $46.90, down $3.49, or 6.93% since the insider sale.
Paul Tudor Jones owns 119,100 shares of SNDK, valued as $5 million as of Sep. 30, 2011, which accounts for 0.186% of his equity portfolio. Paul Tudor Jones added his positions in the Jun. 30, 2011 quarter by 373.42%, again in the Sep. 30, 2011 quarter by 218.45%. He also had an enormous spike with 557,000 shares in quarter 3 2006 as well as a smaller spike with 246,000 shares in quarter 4 2008. Since late 2009, Jones had a relatively varying but low position until the most recently quarter when he went from 37,000 shares last quarter to the current 119,000.
Stocks That Paul Tudor Jones Keeps Selling
No. 1: Microsoft Corp. (MSFT), Weightings: 0.1545% - 160,300 SharesMicrosoft develops, manufactures, licenses, and supports a wide range of software products for a multitude of computing devices. Microsoft Corp. has a market cap of $218.93 billion; its shares were traded at around $26.025 with a P/E ratio of 9.7 and P/S ratio of 3.2. The dividend yield of Microsoft Corp. stocks is 3%. Microsoft Corp. had an annual average earnings growth of 14.4% over the past 10 years. GuruFocus rated Microsoft Corp. the business predictability rank of 4.5-star.
Microsoft Corp. said Wednesday that its presence at next month’s Consumer Electronics Show will be its last. Microsoft said its changing business, which now includes video game consoles and mobile phone software, as well as its traditional Windows and Office products, has forced it to reassess how it announces new products. Microsoft now joins Apple in staging its own events to show off its products.
Microsoft Corporation and Orange announced that they have signed an agreement to offer a new service to Orange TV customers in the spring of 2012: voice and motion-activated television control using Kinect technology. The companies said that on December 6, 2011 they signed an agreement that allows for Orange TV broadcasts on the Xbox game console. Starting in spring 2012, 30 Orange TV channels, including the major channels on the French market, will be available on the Xbox 360. Users will be able to interact with Orange TV to change channels, launch a video or pause the video with no remote control required. To launch Orange TV from the Xbox interface, users will need to say "Xbox Orange" to the game console.
Paul Tudor Jones owns 160,300 shares of MSFT, valued as $4 million as of Sep. 30, 2011, which accounts for 0.1545% of his equity portfolio. Paul Tudor Jones reduced his positions in the Jun. 30, 2011 quarter by 25.89%, again in the Sep. 30, 2011 quarter by 86.25%. He had two huge spikes in position in late 2006 and 2007 but had relatively no position until 2011. With a spike of 1.573 million shares in quarter 1 this year, Jones has been selling most of his holdings since then.
No. 2: Earthlink Inc. (ELNK), Weightings: 0.0777% - 307,424 SharesEarthLink provides a full range of innovative access, hosting and e-commerce solutions to thousands of communities through over 7,500 dial-up points of presence, and broadband and wireless technologies. Earthlink Inc. has a market cap of $674.2 million; its shares were traded at around $6.32 with a P/E ratio of 10.2 and P/S ratio of 1. The dividend yield of Earthlink Inc. stocks is 3.2%. Earthlink Inc. had an annual average earnings growth of 15.4% over the past 5 years.
EarthLink Inc. said Monday that it will acquire One Communications Corp. for $370 million, which includes payment of about $285 million of One Comm debt. Earthlink said the acquisition will provide "a strong IP network footprint in the Northeast, Midwest, and Mid Atlantic."
Paul Tudor Jones owns 307,424 shares of ELNK, valued as $2 million as of Sep. 30, 2011, which accounts for 0.0777% of his equity portfolio. Paul Tudor Jones reduced his positions in the Jun. 30, 2011 quarter by 12.29%, again in the Sep. 30, 2011 quarter by 15.57%. He had a large position in this stock in mid-2006 with a peak of almost 2.4 million shares. There was not much activity in this stock other than a relatively low position of under 73,000 shares in late 2009 and 2010. Starting in 2011, Jones increased his position to 415,000 shares and has been selling since.
No. 3: Exelon Corp. (EXC), Weightings: 0.0229% - 13,900 SharesExelon Corporation is a utility holding company. Its subsidiaries are engaged principally in the production, purchase, transmission, distribution and sale of electricity to residential, commercial, industrial and wholesale customers and the distribution and sale of natural gas to residential, commercial and industrial customers. Exelon Corp. has a market cap of $28.07 billion; its shares were traded at around $42.33 with a P/E ratio of 9.9 and P/S ratio of 1.5. The dividend yield of Exelon Corp. stocks is 5%. Exelon Corp. had an annual average earnings growth of 10.2% over the past 10 years. GuruFocus rated Exelon Corp. the business predictability rank of 2.5-star.
Exelon's $7.9 billion bid to buy Constellation Energy has been approved by the U.S. Department of Justice, but Exelon Corp. and Constellation Energy Group Inc. need to shed three electricity plants. Exelon Corp. and Constellation Energy boosted the investments they will make in Maryland as part of a settlement reached with the state in connection with the companies' merger. The companies said they now plan to spend more than $1 billion in Maryland on projects that could create more than 6,000 jobs statewide. Earlier this month, the companies had offered to spend more than $445 million in the state to create more than 2,400 jobs.
Paul Tudor Jones owns 13,900 shares of EXC, valued as $1 million as of Sep. 30, 2011, which accounts for 0.0229% of his equity portfolio. Paul Tudor Jones reduced his positions in the Jun. 30, 2011 quarter by 33.48%, again in the Sep. 30, 2011 quarter by 9.15%. He has been active with this stock since late 2009 with the peak at only 23,000 shares in early 2011 but has been selling since.
No. 4: Neustar Cl A (NSR), Weightings: 0.0199% - 20,500 SharesNeuStar is a provider of essential clearinghouse services to the North American communications industry and Internet service providers around the world. Neustar Cl A has a market cap of $2.49 billion; its shares were traded at around $34.24 with a P/E ratio of 19.3 and P/S ratio of 4.7. Neustar Cl A had an annual average earnings growth of 12.3% over the past 5 years.
Neustar have climbed more than 40% since Hook, a former Time Warner-AOL executive, was promoted to the helm in October 2010. Neustar hit a four-year high of 34.73 on Dec. 2, and now trades near 34. Neustar, which had revenue of $522 million last year, has appealed to some investors because of its steady core business. It garners 60% to 70% of its revenue from routing and managing phone calls and text messages for all the major U.S. telecom service providers. But the stock took off after Neustar acquired Targus Information, a provider of caller identification services, in November for $560 million in cash. Analysts say TargusInfo broadens Neustar's business amid uncertainty over its core contract. The call managing contracts come up for bid in 2013. TargusInfo will add about 20 cents to Neustar's 2012 EPS. Excluding TargusInfo, analysts polled by Thomson Reuters estimate Neustar's 2012 EPS minus items will rise 11% to $2.04.
Paul Tudor Jones owns 20,500 shares of NSR, valued as $1 million as of Sep. 30, 2011, which accounts for 0.0199% of his equity portfolio. Paul Tudor Jones reduced his positions in the Jun. 30, 2011 quarter by 42.98%, again in the Sep. 30, 2011 quarter by 0.97%. He has only had this stock in early 2010 and since late 2010. The peak was in early 2011 with only 36,000 shares and has been decreasing ever since.
No. 5: Nii Holdings Inc (NIHD), Weightings: 0.0195% - 18,700 SharesNII Holdings, formerly known as Nextel International, is one of the world's providers of fully integrated wireless communication services designed to meet the needs of business customers in selected international markets. Nii Holdings Inc has a market cap of $3.56 billion; its shares were traded at around $20.77 with a P/E ratio of 11.8 and P/S ratio of 0.6. Nii Holdings Inc had an annual average earnings growth of 24.2% over the past 10 years.
Nextel de Mexico, the local unit of Virginia-based NII Holdings Inc., said in a statement it reached an agreement with Grupo Iusacell to end litigation related to the auction, in which Nextel won a nationwide band of 30 megahertz that it's using to develop its 3G network.
NIHD was bought by one insider in the past three months. Sergio Chaia purchased 670 shares at $20.48 on December 9. A day earlier, Chaia bought 38,100 shares in total at around $21 per share.
NII Holdings Inc. announced that the company is planning to offer approximately USD 500 million principal amount of 7.625% senior notes due 2021. These notes will be issued by the company's wholly owned subsidiary NII Capital Corp. and guaranteed by NII Holdings and certain of its other US subsidiaries. The notes in this offering are an additional issuance of the USD 750 million of the company's 7.625% senior notes due 2021 initially issued on March 29, 2011.
Paul Tudor Jones owns 18,700 shares of NIHD, valued as $1 million as of Sep. 30, 2011, which accounts for 0.0195% of his equity portfolio. Paul Tudor Jones reduced his positions in the Jun. 30, 2011 quarter by 26.01%, again in the Sep. 30, 2011 quarter by 89.73%. He had many trades in this stock back in 2006 to 2008 with a peak position of 1.871 million shares, but not much in trading or position until 2011 with only 246,000 shares in the first quarter and has been selling since.
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