Paul Tudor Jones Lives Up to Reputation As Active Trader in Third Quarter

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Nov 24, 2014
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Memphis native Paul Tudor Jones, who founded Greenwich, Connecticut-based Tudor Investment Corporation, a private asset management company and hedge fund, in 1980, is known to be an active trader.

The third quarter of 2014 may or may not be representative of how Jones typically invests in a quarter, but he certainly lived up to his reputation, purchasing shares in nearly 900 companies and selling holdings in more than 500 others.

Most of Jones’ transactions involved amounts of stocks that had modest impacts on his portfolio.

New buys

Jones was one of the gurus who invested in Alibaba Group Holding Ltd (BABA, Financial), a Chinese e-commerce company, after its historic IPO in mid-September. Jones bought 520,750 shares at an average price of $89.95 per share. The transaction had a 1.7% impact on his portfolio.

Jones’ second-largest purchase of a new stock – in terms of its effect on his portfolio (0.78%) – was in IHS Inc (IHS, Financial), a Colorado-based publishing company that produces data, technical documents, custom software applications and consulting services for customers in the aerospace and defense, automotive, chemical, energy, finance, maritime and technology industries.

He bought 168,302 shares of IHS for an average price of $135.81 per share.

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Jones also added 660,469 shares of Hologic Inc (HOLX, Financial), a Massachusetts-based developer, manufacturer and supplier of diagnostic and medical imaging systems related to women's health, to his portfolio.

Jones bought the shares for an average price of $25.25. The purchase had a 0.58% impact on his portfolio.

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Other new stocks in Jones’ portfolio are iShares iBoxx $ High Yid Corp Bond (HYG, Financial), Energizer Holdings Inc (ENR, Financial), Baidu Inc (BIDU, Financial), Financial Select Sector SPDR (XLF, Financial), Wright Medical Group Inc (WMGI, Financial) and Fossil Group Inc (FOSL, Financial).

Adds to existing holdings

Jones added to his stake in Zimmer Holdings Inc (ZMH, Financial), an Indiana-based medical devices company. He bought 399,877 shares for an average price of $101.3. The purchase had a 1.45% impact on his portfolio.

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He also increased his holdings in Fidelity National Information Services Inc (FIS, Financial), a Florida-based financial services company. Jones added 592,507 shares to his portfolio (with an impact of 0.78%) for an average price of $54.06.

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Among the companies in which Jones expanded his stakes are HCA Holdings Inc (HCA), Hewlett-Packard Co (HPQ), Pinnacle Foods Inc (PF) and JD.com Inc (JD).

Divestitures and reductions

Among the holdings that Jones eliminated from his portfolio are Veritiv Corp (VRTV), Liberty Media Corporation (LMCA), L&L Energy Inc (LLEN), KiOR Inc (KIOR) and Idera Pharmaceuticals Inc (IDRA).

Jones also reduced his stakes in some companies. Among those are Alon USA Energy Inc (ALJ), Allergan Inc (AGN), Lincoln National Corp (LNC) and Skullcandy Inc (SKUL).