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James Li
James Li
Articles (1280)  | Author's Website |

Paul Tudor Jones’ Top 5 Holdings as of the 1st Quarter

Hedge fund guru says that companies ‘can no longer exist just to make a profit’

According to current portfolio statistics, the top five holdings of Paul Tudor Jones (Trades, Portfolio)’ Tudor Investment as of the March quarter filing are in Legg Mason Inc. (NYSE:LM), E*TRADE Financial Corp. (NASDAQ:ETFC), SPDR S&P 500 (SPY), Raytheon Technologies Corp. (NYSE:RTX) and iShares TIPS Bond (TIP).

Guru critiques long-held belief regarding companies as rekindled coronavirus fears sink markets

Jones said on Wednesday during a Just Capital event with CNBC’s Andrew Ross Sorkin that if a company only had to worry about making a profit, the company would not be required to pay attention to key social factors like pay equity, gender equity and racial equity. The myopic view of just focusing on making a profit, Jones warned, “manifested itself” in a country with a “fragile social infrastructure” platform like the U.S. when the coronavirus pandemic hit.

On Thursday, the day after the Nasdaq closed above 10,000 for the first time, the U.S. indexes each tumbled over 4% on rekindled fears of a second wave of the coronavirus around the nation. According to John Hopkins University statistics, U.S. Covid-19 cases topped 2 million this week as several states have seen upticks in virus hospitalizations.

The Dow Jones Industrial Average closed at 25,128.17, down 1,861.82 points from Wednesday’s close of 26,989.99 and a net 2,444.27 points from the week-high close of 27,572.44 on Monday.

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Guru portfolio overview as of March filing

As of the first-quarter end, Tudor Investment’s $1.11 billion equity portfolio contains 1,015 stocks with a turnover ratio of 38%. The top three sectors in terms of weight are health care, technology and financial services, representing 26.62%, 16.03% and 15.54% of the equity portfolio.

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Legg Mason

Tudor Investment owns 360,793 shares of Legg Mason, giving the position 1.74% weight in the equity portfolio.

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The Baltimore-based company provides investment management services for institutional and individual investors through a multiaffiliate business model. Legg Mason’s affiliates include Chuck Royce (Trades, Portfolio)’s Royce & Associates.

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GuruFocus ranks Legg Mason’s profitability 6 out of 10, driven primarily by a high Piotroski F-score of 7 and expanding operating margins, offsetting three-year revenue and earnings growth rates that are outperforming just over 50% of global competitors.

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Other gurus with holdings in Legg Mason include Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Jeremy Grantham (Trades, Portfolio)’s GMO and George Soros (Trades, Portfolio)’ Soros Fund Management.

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E*TRADE

Tudor Investment owns 489,849 shares of E*TRADE, giving the position 1.51% weight in the equity portfolio.

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According to its website, the Arlington, Virginia-based company pioneered online trading for retail investors during the 1980s. GuruFocus ranks E*TRADE’s financial strength 4 out of 10: Although debt ratios are outperforming over 55% of global competitors, the equity-to-asset ratio of 0.1 underperforms 87.46% of global capital market companies.

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SPDR S&P 500

Tudor Investment owns 61,008 shares of the SPDR S&P 500 exchange traded-fund, giving the holding 1.41% weight in the equity portfolio.

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According to the State Street Global Advisors website, the SPDR S&P 500 ETF seeks to provide investment results that correspond to the performance of the Standard & Poor’s 500 Index. The index closed on Thursday at 3,002.10, down 188.04 points or 5.89% from the previous close of 3,190.14.

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Raytheon

Tudor Investment owns 257,600 shares of Raytheon, giving the position 1.23% weight in the equity portfolio.

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The Waltham, Massachusetts-based company operates a diversified range of aerospace and defense businesses. GuruFocus ranks Raytheon’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7, a three-star business predictability rank and an operating margin that outperforms approximately 69% of global competitors.

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iShares TIPS Bond

Tudor Investment owns 100,000 shares of iShares TIPS Bond ETF, giving the holding 1.06% weight in the equity portfolio.

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According to the iShares website, the iShares TIPS Bond ETF seeks to track the investment results of an index composed of inflation-protected U.S. Treasury bonds. TIPS stands for “Treasury Inflation-Protected Securities.”

Disclosure: The author has no positions in the stocks mentioned. The mention of guru holdings reflect information as of the March-quarter filing and do not include portfolio hedges, buys or sells the guru might have made during April to June.

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About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

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