In 1980, Paul Tudor Jones founded his hedge fund, Tudor Investment. Today, the fund manages $24.88 billion in assets under management (AUM), of which $4.27 billion is invested into 13F equities. Jones is well known for his macroeconomic trades, specializing in interest rates and foreign exchange events. Today, he has an estimated net worth of $7.3 billion.
Jones first gained widespread acclaim after shorting the market during the Black Monday Crash of 1987. After the trade, he walked away with a massive profit of $100 million. Adjusted for inflation, that profit would be worth $254 million today. Jones studied previous market crashes, such as the crash of 1929, and noted direct comparisons with the financial environment during 1987.
During May, the veteran fund manager told CNBC: You can’t think of a worse environment than where we are right now for financial assets. Clearly you don’t want to own bonds and stocks.”
He added that “If there was a strategy that I would want to employ right now, if someone put a gun to my head, I’d say simple trend-following strategies.”
Today, Jones still serves as the chief investment officer (CIO) of Tudor Investment. Let’s take a look into his portfolio.
Billionaire Paul Tudor Jones Bets Big on These Three Stocks
Tudor Investment operates under a short term mindset. The hedge fund has an average holding period of 3.84 quarters for stocks in its portfolio. For stocks in its top ten positions, it has an average holding period of just 0.8 quarters.
As of the first quarter of 2022, the hedge fund’s largest position is Cerner (NASDAQ:CERN). The fund owns 1.09 million shares, which makes up 2.4% of its portfolio. In addition, Jones picked up an additional 919,171 shares during Q1.
Last year, Oracle (NYSE:ORCL) announced that it would be acquiring the healthcare technology company for $28.3 billion. Yesterday, it was announced that the acquisition had cleared all of the required antitrust approvals necessary for the deal. The transaction is now expected to close on June 6.
The fund’s second largest position is Anaplan (NYSE:PLAN). During Q1, Tudor Investment purchased an additional 1.34 million shares. The cloud-based business planning company now makes up 2.09% of the fund’s portfolio.
Finally, put options on the SPDR S&P 500 (NYSEARCA:SPY) exchange-traded fund (ETF) are the fund’s third largest holding. Tudor Investment owns put options against 140,000 shares of SPY, which makes up 1.48% of its portfolio. Furthermore, the fund purchased all of the put options during Q1, making it a new position. The SPY puts can clearly be seen as a hedge against a general market decline. Since the end of Q1, or March 31, the S&P 500 ETF has declined by 9%.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.