A Look at the Performance of Paul Tudor Jones' Top 5 Buys

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 |  Includes: GOOG, HCN, MET, MSFT, NLSN
by: Rash Menaria

Tudor Investment Corporation is a hedge fund management firm founded by Paul T. Jones II. The firm manages the Tudor series of hedge funds. The following is a brief look at performance of its top 5 buys of Q1 (Source: 13F filing) from March 31-June 30, 2011.

Stock
Symbol
Shares Held - 12/31/2010
Shares Held - 03/31/2011
Performance Mar 31- June 30
Metlife Inc.
0
1,005,800
-1.10%
Microsoft Corporation
368,500
1,572,775
1.93%
Health Care REIT
0
402,000
1.35%
Google Inc
900
36,400
-13.34%
Nielsen Holdings NV
0
512,500
10.88%
Click to enlarge
Nielsen Holdings was the best performing stock, gaining 10.88%, while Google was the worst, declining 13.34%. Metlife, Microsoft and HCN remained within a couple of percentage compared with their March 31 price as was the S&P 500 (NYSEARCA:SPY) index.

I believe all five stocks present good investment opportunity going forward. Here’s why:

MetLif is the leading provider in the U.S. of individual and group life insurance, retirement savings products, dental, disability and group auto & home insurance. The company possesses the strongest long-term growth potential of any U.S. life insurer owing to its leading market positions, household brand-name awareness and solid financial strength. With the announced acquisition of ALICO (AIG's foreign life subsidiary), international markets will become the company's biggest business.

Microsoft Corp. gained 7% last week after Microsoft Office 365 launch and speculation surfaced on the early launch of Windows 8. Trading at 9x next year's consensus EPS, Microsoft remains an underappreciated story. Microsoft is taking a lot of new initiatives, which can drive meaningful growth over the next few years. Some of the major catalysts for the stocks are the Windows 8 launch, Office 365 gaining traction and a successful launch of Nokia WP7 phones. I think Microsoft offers an attractive risk reward for investors who can hold the stock for next couple of years.

Healthcare REIT is an equity real estate investment trust. The firm engages in investment, development and management of properties. It primarily invests in healthcare properties. The firm invests across the full spectrum of senior housing and healthcare real estate, including independent living/continuing care retirement communities, assisted living facilities, skilled nursing facilities, hospitals, long-term acute care hospitals, and medical office buildings. The healthcare industry is strong as consumers are spending more on health issues. The occupancy rate is increasing sequentially every month. Consumers are moving toward better facilities as the country’s large chunk of population is growing old and requires health care facilities.

Google is a global technology leader focused on improving the ways people connect with information. The stock price of Google has corrected 20% YTD. I do understand the threat from Facebook and the not-so-successful earlier attempts by Google in Web2.0 space (too early to comment on Google plus success yet). But a PE valuation of just 12x next year's EPS is cheap for a company like Google.

The company remains focused on creating long-term value. Strategically, Google’s approach is to identify and penetrate large, global markets by creating platforms and marrying them with significant owned & operated web properties. With searches increasingly coming from mobile devices such as smartphones, Google developed Android, a mobile operating system that allows open interoperation across carriers and manufacturers. Android’s success is increasingly well-recognized. Android is poised to account for over 50% of smartphone subscribers by 2014, while the number of apps has grown to ~150k, narrowing the gap with Apple (AAPL). Google now accounts for 75%-80% of search spend in the United States versus approximately 70%-75% a year ago as Google represents the vast majority of mobile spend today. On average, the SEMs (search engine marketers) continue to expect healthy growth in 2011, with mid-to-high teens growth for the United States on average.

To enable faster searches, Google launched a new web browser called Google Chrome. This browser makes it easier for folks to use their favorite Google products like Google Maps, Gmail, Google Calendar, Google Docs and Google Translate, which allows users to instantly translate web pages and videos between any of 58 languages. Google Chrome is steadily gaining market share against Internet Explorer.

Due to the growth of the digital economy and the shift of consumers and advertisers from offline to online, Google has generated outstanding growth and it is likely to continue. Further, any success in Google plus might remove investors' biggest concerns about the company and the stock may appreciate significantly (though it is yet to be seen).

Nielsen Holdings N.V.(NYSE:NLSN), through its subsidiary, The Nielsen Company B.V., operates as an information and measurement company worldwide. It offers critical media and marketing information, analytics, and industry expertise about what consumers buy and what consumers watch on a global and local basis.

NLSN continues to invest in new products through spending heavily on Buy segment data sets/panels in China, India, and Africa. NLSN’s Online Campaign Ratings (with Facebook and others) will go commercial in Q3,11. It is also investing in a “hybrid” model merging National People Meter ratings with set-topboxdata that could improve its sample error, stability, and “zero cell” occurrences (i.e., when no viewership is reported for a program). Nielsen is trying to improve its local tools in an “economically viable” manner (for Nielsen andclients)—as the top 60 TV markets account for 90% of all ad spending.

Further, Nielsen’s recent appointment as IAB Australia’s sole supplier of online audience measurement services in Australia is a positive for Nielsen, as it continues to gain traction in online measurement. The IAB Technical Review Group found Nielsen “offered the most accurate, robust and credible measurement data for Australian online audiences and websites.”

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.