Non-Value Investor Paul Tudor Jones' Top 5 Buys of 1st Quarter

Paul Tudor Jones (Trades, Portfolio), chief investment officer of the Tudor Group, added to his portfolio 347 stocks, bringing the total to 967 at the end of the first quarter.

According to a portfolio update last week, the hedge fund pioneer selected from a variety of industries and sectors. His most predominant type of holding is in ETF, options and preferred stocks, which occupy 50.7% of the long portfolio.

The S&P 500 was Jones’ biggest holding at 21.14% of the portfolio, but it was followed by puts and calls on the index that make up almost a third.

Instead of value investing, Jones uses discretionary macro trading as well as model-driven and systematic investment strategies.

“The inability to read a tape and spot trends is also why so many in the relative-value space who rely solely on fundamentals have been annihilated in the past decade,” he said in a 2009 interview with Institutional Investor. “Markets have consistently experienced ‘100-year events’ every five years. While I spend a significant amount of my time on analytics and collecting fundamental information, at the end of the day, I am a slave to the tape and proud of it.”

His ability to read trends led him to short stock index futures in the Black Monday market crash in 1987, making a reported $100 million.

In February, CNBC reported that the investor worried about the “obsession” of the Federal Reserve’s focus on 2% inflation.

"We are in the throes of a burgeoning financial bubble," Jones said in a note, CNBC reported. "In the U.S., this obsession on inflation targeting has lately been taken to a new level as former Fed Chair Ben Bernanke has floated the idea of a price-level targeting mandate for the Fed. That means the central bank would allow inflation to remain above 2 percent to 'make up' for periods when inflation is too low."

Forbes ranks Jones as the world’s 13th richest hedge fund billionaire, with a net worth as $4.7 billion.

His largest buys of the first quarter were: Orbital ATK Inc. (OA, Financial), Validus Holdings Ltd. (VR, Financial), XL Group Ltd. (XL, Financial), HRG Group Inc. (HRG, Financial) and Blue Buffalo Pet Products Inc. (BUFF, Financial).

Orbital ATK Inc. (OA, Financial)

Jones purchased 229,616 shares of Orbital ATK Inc., giving it 0.99% portfolio weight. The stock’s first-quarter average price was $132.

Orbital ATK Inc. has a market cap of $7.73 billion; its shares were traded around $133.70 with a P/E ratio of 22.51 and P/S ratio of 1.55. The trailing 12-month dividend yield of Orbital ATK Inc. stocks is 0.96%. The forward dividend yield of Orbital ATK Inc stocks is 0.96%. Orbital Atk Inc. had an annual average earnings growth of 0.60% over the past five years.

Validus Holdings Ltd. (VR, Financial)

Jones purchased 391,683 shares of Validus Holding, giving it 0.86% portfolio weight. The stock’s first-quarter share price averaged $63.

Validus Holdings Ltd. has a market cap of $5.37 billion; its shares were traded around $67.66 with and P/S ratio of 1.92. The trailing 12-month dividend yield of Validus Holdings Ltd. stocks is 2.25%. The forward dividend yield of Validus Holdings Ltd. stocks is 2.25%.

XL Group Ltd. (XL, Financial)

Jones purchased 405,000 shares of XL Group Ltd., giving it 0.72% portfolio weight. The stock’s first-quarter share price averaged $44.

XL Group Ltd. has a market cap of $14.38 billion; its shares were traded around $55.67 with and P/S ratio of 1.28. The trailing 12-month dividend yield of XL Group Ltd. stocks is 1.58%. The forward dividend yield of XL Group Ltd. stocks is 1.58%.

HRG Group Inc. (HRG, Financial)

Jones purchased 844,132 shares of HRG Group, giving it 0.45% portfolio weight. The stock’s first-quarter share price averaged $17.

HRG Group Inc. has a market cap of $2.58 billion; its shares were traded around $12.72 with a P/E ratio of 5.77 and P/S ratio of 0.62.

Blue Buffalo Pet Products Inc. (BUFF, Financial)

Jones purchased 320,471 shares of Blue Buffalo Pet Products, giving it 0.41% portfolio weight. The stock’s first-quarter share price averaged $36.

Blue Buffalo Pet Products Inc. has a market cap of $7.91 billion; its shares were traded around $40.00 with a P/E ratio of 41.24 and P/S ratio of 6.24. Blue Buffalo Pet Products Inc. had an annual average earnings growth of 18.80% over the past five years.

See Paul Tudor Jones (Trades, Portfolio)’ portfolio here.