In this article we discuss the Billionaire Paul Tudor Jones’ Top 5 Stock Picks. If you want to read our detailed analysis of Paul Tudor Jones’ hedge fund performance and returns, go directly to Billionaire Paul Tudor Jones’ Top 10 Stock Picks.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, the House passed a landmark bill decriminalizing marijuana. So, we are checking out this under the radar cannabis stock that’s utilizing artificial intelligence. We go through lists like the 15 best innovative stocks to buy to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage (or at the end of this article). Keeping this in mind let’s take a look at billionaire PTJ’s top 5 stock picks:
5. Aimmune Therapeutics, Inc. (NASDAQ: AIMT)
Aimmune Therapeutics, Inc. (NASDAQ: AIMT) was the fifth largest holding of Paul Tudor Jones. The fund manager initiated a position during the third quarter and became the top hedge fund investor in the company. His position was valued at $34.088 million and represented 1.5% of his overall fund holdings.
On August 31, 2020, Aimmune Therapeutics, Inc. entered into a definitive agreement pursuant to which Nestlé Health Science (NHSc) would acquire Aimmune for $2 billion.
The acquiring price was $34.50 per share. Shares were trading near $12.60 on August 28, 2020 before soaring to $34.17 following the announcement.
4. Immunomedics, Inc. (NASDAQ: IMMU)
Immunomedics, Inc. (NASDAQ: IMMU) is another stock that PTJ added to his top holdings during the third quarter of 2020, by allocating 2% of his fund to this new stock. The position was worth $45.105 million by the end of the quarter, making it the fourth largest holding in his 13F at that time.
On September 13, 2020, Gilead Sciences Inc (NASDAQ: GILD) announced that it will acquire Immunomedics for $21 billion in cash and declared that it entered into strategic collaborations to foray into the lucrative oncology space.
Gilead Sciences Inc. paid $88.00 per share, more than double what IMMU was trading before the announcement ($42.25 per share).
3. Grubhub Inc. (NYSE: GRUB)
Ranking 3rd on the list of billionaire Paul Tudor Jones’ top 5 stock picks list is Grubhub. As per the latest 13F reporting period, Tudor boosted his holding in Grubhub Inc. (NYSE: GRUB) by 4,513% and it was valued at $18.368 million. The position in Grubhub accounted for nearly 2.1% of his total portfolio. GRUB’s share price increased by 33% over the last twelve months.
Grubhub is a leading online and mobile food ordering company. It managed the shift from offline to online food ordering for thousands of restaurants. The company has been expanding its partner base and now has more than 300,000 restaurants on its platform. Last June, Just Eat Takeaway.com (JET) and Grubhub agreed on a deal in which JET would acquire 100% of Grubhub via an all-stock transaction valued nearly at $7.3 billion. This merger was expected to be finalized in the first half of 2021.
Grubhub shares traded at $75.27 as of January 29, 2021 with revenues increasing by 262% over the last five years.
2. GCI Liberty, Inc. (NASDAQ: GLIBA)
GCI Liberty Inc. (NASDAQ: GLIBA) was the second largest holdings of Paul Tudor Jones with a position valued at $71.309 million. The investor’s stake in the company was increased by 335,000 shares during the third quarter, with a 3.16% weight in the portfolio.
GCI Liberty, Inc. provides various communication services in the U.S. by offering data, wireless, video, voice, and managed services to residential customers, businesses, governmental entities, and educational and medical institutions.
GCI Liberty stock price appreciated by 5.5% since the start of 2020 until it was acquired by Liberty Broadband in a stock-for-stock merger on December 18, 2020. Under the terms of the merger agreement, each shareholder of GLIBA will receive 0.580 of a share of Liberty Broadband (LBRDK).
1. Advanced Disposal Services, Inc. (NYSE: ADSW)
As of the third quarter of 2020, Advanced Disposal Services, Inc. (NYSE: ADSW) is the biggest stock pick of Paul Tudor’s hedge fund. His fund raised its stake in the company by 170% compared to the second quarter of 2020 and the position accounted for 5.1% of the overall portfolio making it the largest investment in the fund. ADSW shares have depreciated by 8% since the beginning of 2020 until being fully acquired by Waste Management (NYSE: WM) on October 30.
Under the terms of the merger agreement, Advanced Disposal stockholders were entitled to receive $30.30 per share in cash.
Initially, ADSW raised $376 million in its IPO during 2016, during which it issued 19,300,000 shares at $18.00 – $21.00 per share.