10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Paul Tudor Jones Top Purchases: Chesapeake Energy Corp., Mead Johnson Nutrition Company, Mindray Medical International Ltd., Health Care SPDR, Consumer Discretionary SPDR

December 17, 2009 | About:
guruek

guruek

80 followers
(GuruFocus, December 17, 2009) Two months ago on October 15, 2008, Investment Guru Paul Tudor Jones expressed his bullish view on the stock market and issues the following market outlook on stocks in his quarterly letter to investors:
A mixture of macro, micro and technical considerations join to reinforce our comment from last quarter’s letter of Auguest 3rd that “… the stage should be set for another run of meaningful size into year-end”. Ensuing developments lead us to think that run could continue well into the first quarter of next year. Aft er that we would have to reassess. While a movement away from the tight synchronization of monetary and fiscal policies around the world remains a risk, there still seems to be a widely shared inclination to err in ways that favor equities.

Throughout the downturn, companies globally worked hard at rationalizing cost structure, and thus are now poised to reap rewards should revenues begin to grow. According o a study by Goldman Sachs, with only a quarter of the non-financial companies in the S&P 500 significantly beating analysts’ estimates for second quarter revenues, roughly half significantly beat estimates on earnings. This exemplifies the power of margin expansion, and hint at what could happen should the number of top-line surprises increase through Q3 reporting season just begun.
The reported results confirmed his assessment that little top line growth goes a long way in bottom line growth for the S&P 500 companies.

Yesterday, Paul Jones was reported that he is not accepting new investors for one of his funds:

.

Paul Tudor deals with international stocks, commodities, fixed income, and foreign currencies, GuruFocus tacks a small portion of his portfolio and that is in the stocks that are traded in the US.

For the quarter ended on September 30, 2009, these are the stocks he bought the most:

No. 1: Chesapeake Energy Corp. (CHK), Add: 0.77% of the portfolio - Total: 166,300 Shares

Chesapeake Energy Corp. is an independent oil and gas company engaged in the development, exploration, acquisition and production of onshore natural gas and oil reserves. Chesapeake Energy Corp. has a market cap of $16.13 billion; its shares were traded at around $24.91 with a P/E ratio of 9.9 and P/S ratio of 1.4. The dividend yield of Chesapeake Energy Corp. stocks is 1.2%. Chesapeake Energy Corp. had an annual average earning growth of 19.6% over the past 5 years.

No. 2: Mead Johnson Nutrition Company (MJN), Buy: 2.14% of the portfolio - Total: 196,500 Shares

Mead Johnson Nutrition Company is a pediatric nutrition company. It manufactures, distributes, and sells infant formulas and other nutritional products worldwide primarily under the `Enfa` family of brands. Mead Johnson Nutriti has a market cap of $3.27 billion; its shares were traded at around $42.59 with a P/E ratio of 20.4 and P/S ratio of 1.2. The dividend yield of Mead Johnson Nutriti stocks is 1.8%.

No. 3: Mindray Medical International Ltd. (MR), Add: 0.74% of the portfolio - Total: 325,400 Shares

Mindray Medical International Limited is a leading developer, manufacturer and marketer of medical devices in China with a significant and growing presence worldwide. Mindray Medical International Ltd. has a market cap of $2.53 billion; its shares were traded at around $33.53 with a P/E ratio of 28.7 and P/S ratio of 4.6. The dividend yield of Mindray Medical International Ltd. stocks is 0.6%.

No. 4: Health Care SPDR (XLV), Add: 2.36% of the portfolio - Total: 467,344 Shares

Health Care Select Sector SPDR seeks to provide investment results that correspond to the price and yield performance of the Health Care Select Sector of the S&P 500 Index (the Index). The Index includes companies from industries, such as pharmaceuticals, healthcare equipment and supplies, healthcare providers and services, biotechnology, life sciences tools and services, and health care technology.

Health Care SPDR (XLV), has a market cap of $2.45 billion; its shares were traded at around $31.42 . The dividend yield of Select Sector Spdrhealth Care stocks is 1.8%.

No. 5: Consumer Discretionary SPDR (XLY), Buy: 0.82% of the portfolio - Total: 123,001 Shares

Consumer Discretionary SPDR (XLY) invests in industries such as automobiles and components, consumer durables, apparel, hotels, restaurants, leisure, media, and retailing. The Consumer Discretionary Select Sector SPDR was previously known as the Cyclical/Transportation Select Sector SPDR. The Index includes Viacom, Home Depot and AOL Time Warner.

Consumer Discretionary SPDR (XLY) has a market cap of $1.49 billion; its shares were traded at around $29.98 . The dividend yield of Select Sector Spdrconsumer Discretionary stocks is 1.2%.

Conclusion

Paul Tudor Jones added to Health Care names and EFT to his portfolio during 3Q09.

GuruFocus provides real time information and insights of Investment Gurus such as Warren Buffett and Paul Tudor Jones for Premium Members. If you are not a premium member, click here to sign up or upgrade. 7-Day Free Trial is available.





Rating: 2.4/5 (11 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK