In this piece, we will take a look at the stocks that billionaire Paul Tudor Jones and insiders love. If you want to skip our introduction to Paul Tudor Jones and his hedge fund, then take a look at Billionaire Paul Tudor Jones and Insiders Love These Stocks: Top 5 Stocks.
Paul Tudor Jones is one of the most successful hedge fund bosses in the industry. According to Forbes Magazine, he was worth $8.1 billion as of November 2023, making him one of the richest people in the world. The investor started his journey in the finance industry in 1976 after graduating from the University of Virginia with a bachelor's degree in economics. Mr. Tudor's finance career would start in the commodities market, as he would work as a cotton broker. He would spend more than a decade in this field before finally taking the plunge and setting up Tudor Investment Corporation in 1980.
When it comes to making headlines, the first half of Mr. Tudor's investment career is more impressive. This is because he is known as a trend player, or an investor who senses the direction in which financial market winds are blowing and then adjusts his sails accordingly. Seven years after setting up Tudor Investment, Paul Tudor would sense an opportunity before the notorious Black Monday stock market crash of 1987. This crash came after years of bull runs on the stock market that created uncertainty about stocks being overvalued. Investors then started to submit sell orders to exchanges in bulk, and when all of these were executed, the market dropped. Mr. Tudor and his firm anticipated this, and according to some estimates, ended up booking a whopping $100 million in profits. This wouldn't be the hedge fund's last hurrah.
A couple of years later Mr. Tudor's knack of sniffing potential overvaluations would return at the precipice of Japan's lost economic decade. This era came after Japan's post war economic boom, which was aided by lax monetary policies that incentivized corporate borrowing and spending to spur economic growth. While this is a good thing for its own sake, its negative consequences came when Japanese asset valuations swelled due to easy access to capital. Sensing impending doom, Japanese authorities started to make changes, that caused the stock market to crash and allowed Mr. Tudor to profit. Back then, as the flagship Japanese Nikkei 225 index dropped by 43% in a single year, Mr. Tudor's fund would go on to post 87% in returns for the year.
If you're an avid student of U.S. stock market history and are reading this, then you might know where we're heading next. One of the biggest eras of overvaluation in America was during the time of the dot com bubble. Back then, the Internet was making its way to consumers for the first time, and personal computers were starting to become common. The potential of the Internet to disrupt industries caused ordinary people and seasoned hedge funds to pile into stocks, and most of the time, without the proper due diligence in a classic example of the fear of missing out. Naturally, valuations became overstretched, and when they came tumbling down, Mr. Tudor profited just like he had during Black Monday and the Japanese asset price crash.
Post 2001, and particularly after the 2008 Great Recession, Tudor Investment's performance wasn't as eye catching. The post 2008 era was marked by low interest rates and more hedge funds popping up. Yet, it is still one of the biggest hedge funds in the world. Insider Monkey dug through Tudor Investment's SEC filings for Q3 2023 and discovered that its investment portfolio was worth $9.9 billion. These values often include the notional value of options, so the actual dollar amount that the firm had spent on its investment decisions can be lower. Compared to the second quarter, the third quarter portfolio marked a sizeable $1.6 billion growth, and annually, the portfolio has more than doubled in value, since during September 2022 it was worth $4.6 billion.
Safe to say, Mr. Tudor has spent most of his time on the front lines for most of the stock market's recent history. This naturally makes it quite crucial that we see what he's up to lately. Today, we decided to see which of Paul Tudor's top stock picks have also seen notable insider buying. Insider purchases lend credibility to a stock's prospects, as these people have the closest exposure to a firm's business and future prospects. Some top stocks in today's list are Nasdaq, Inc. (NASDAQ:NDAQ), Capri Holdings Limited (NYSE:CPRI), and NIKE, Inc. (NYSE:NKE).
To compile our list of the stocks that Paul Tudor and insiders love, we ranked his firm's 40 biggest investment positions by the dollar amount of insider stock purchases over the past twelve months.
Billionaire Paul Tudor Jones and Insiders Love These Stocks
11. RTX Corporation (NYSE:RTX)
Tudor Investment's Q3 2023 Investment Value: $38.3 million
Insider Purchases: $8,682
Average Share Price: $86.82
RTX Corporation (NYSE:RTX) is an American defense and aerospace contractor previously known as Raytheon. Its director James Winnefeld bought 1,000 shares for $8,682 in Q3 2023. November was a good month for RTX Corporation (NYSE:RTX), as the firm scored a multi million dollar engine contract extension from the Defense Department.
During this year's second quarter, 56 out of the 910 hedge funds part of Insider Monkey's database had held a stake in RTX Corporation (NYSE:RTX). In the following quarter, the firm's largest shareholder was Ken Fisher's Fisher Asset Management as it owned 9.4 million shares that are worth $681 million.
Along with Capri Holdings Limited (NYSE:CPRI), Nasdaq, Inc. (NASDAQ:NDAQ), and NIKE, Inc. (NYSE:NKE), RTX Corporation (NYSE:RTX) is a stock on the radar of both billionaire Paul Tudor Jones and insiders.
10. Adobe Inc. (NASDAQ:ADBE)
Tudor Investment's Q3 2023 Investment Value: $33.3 million
Insider Purchases: $19,680
Average Share Price: $492
Adobe Inc. (NASDAQ:ADBE) is a technology company that sells engineering and design software. The firm is currently interested in expanding its design software portfolio and it is aiming to acquire a European company for a $20 billion price tag. Adobe Inc. (NASDAQ:ADBE)'s shares are rated Strong Buy on average and the firm has beaten analyst EPS estimates in all four of its latest quarters.
As of June 2023 end, 109 out of the 910 hedge funds profiled by Insider Monkey had invested in the firm. Adobe Inc. (NASDAQ:ADBE)'s biggest hedge fund investor in Q3 was Ken Fisher's Fisher Asset Management courtesy of its $2.3 billion investment.
9. Citizens Financial Group, Inc. (NYSE:CFG)
Tudor Investment's Q3 2023 Investment Value: $25.5 million
Insider Purchases: $144,262
Average Share Price: $26
Citizens Financial Group, Inc. (NYSE:CFG) is an American regional bank headquartered in Providence, Rhode Island. While big banks such as JPMorgan have done well financially this year due to high interest rates, Citizens Financial Group, Inc. (NYSE:CFG) is still reeling from the March 2023 crisis and it has missed analyst EPS estimates in all four of its latest quarters.
By the end of this year's second quarter, 46 out of the 910 hedge funds polled by Insider Monkey had bought and owned Citizens Financial Group, Inc. (NYSE:CFG)'s shares. In the September quarter, the bank's largest shareholder in our database is Cliff Asness' AQR Capital Management since it owns $100 million worth of shares.
8. Fastenal Company (NASDAQ:FAST)
Tudor Investment's Q3 2023 Investment Value: $23.5 million
Insider Purchases: $329,198
Average Share Price: $54
Fastenal Company (NASDAQ:FAST) is an industrial equipment provider that sells materials and items used by the construction industry. The firm posted strong third quarter financial results, as its 53 cents EPS beat previous forecasts while the revenue met them.
Insider Monkey dug through 910 hedge funds for their shareholdings during this year's June quarter to find that 31 had held a stake in the company. Fastenal Company (NASDAQ:FAST)'s biggest investor in Q3 was William Von Mueffling's Cantillon Capital Management due to its $303 million stake.
7. Vertiv Holdings Co (NYSE:VRT)
Tudor Investment's Q3 2023 Investment Value: $30 million
Insider Purchases: $741,321
Average Share Price: $21.18
Vertiv Holdings Co (NYSE:VRT) is another industrial company. It sells products to the technology and communications industry. The firm's only insider stock purchase came in June 2023 when its chief technology officer Stephen Liang bought 35,001 shares for $741,321.
As of June 2023 end, 54 out of the 910 hedge funds polled by Insider Monkey had invested in Vertiv Holdings Co (NYSE:VRT). During the September quarter, the firm's largest stakeholder was Philippe Laffont's Coatue Management as it owned 11.5 million shares that are worth $430 million.
6. Lockheed Martin Corporation (NYSE:LMT)
Tudor Investment's Q3 2023 Investment Value: $33 million
Insider Purchases: $851,898
Average Share Price: $450.8
Lockheed Martin Corporation (NYSE:LMT) is an American defense contractor known primarily for its jet fighters. The firm expanded its presence in Alabama in November 2023 as it opened a $16.5 million engineering facility in the state.
52 out of the 910 hedge funds profiled by Insider Monkey had held a stake in the company as of Q2 2023 end. Lockheed Martin Corporation (NYSE:LMT)'s biggest third quarter hedge fund investor was John Overdeck and David Siegel's Two Sigma Advisors since it held $366 million worth of shares.
Nasdaq, Inc. (NASDAQ:NDAQ), Lockheed Martin Corporation (NYSE:LMT), Capri Holdings Limited (NYSE:CPRI), and NIKE, Inc. (NYSE:NKE) are some top Paul Tudor Jones stocks with strong insider buying.
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Disclosure: None. Billionaire Paul Tudor Jones and Insiders Love These 11 Stocks is originally published on Insider Monkey.