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Tudor Investment Corporation is a hedge fund management firm that was founded by billionaire Paul Tudor Jones II. The firm manages the Tudor series of hedge funds.

I previously discussed the top stocks in which Tudor Investment Corp. has increased its positions in the last quarter. In addition to buys, it is also interesting to look at top companies where Tudor Investment Corporation is booking profit and selling its holdings. The following is a list of top stocks where Tudor Investment Corp. decreased its positions in the last quarter, according to its most recent 13F filing with the SEC.

Stock

Symbol

Shares Held 03/31/2011

Shares Held 06/30/2011

Change in Shares

Metlife, Inc.

(MET)

1,005,800

13,622

-992,178

Nielsen Holdings N.V.

(NLSN)

512,500

22,083

-490,417

Microsoft Corporation

(MSFT)

1,572,775

1,165,600

-407,175

Keycorp

(KEY)

781,600

14,800

-766,800

HCA Hldgs Inc

(HCA)

375,000

187,500

-187,500

Activision Blizzard, Inc.

(ATVI)

448,200

51,900

-396,300

NII Holdings Inc.

(NIHD)

246,100

182,100

-64,000

My favourite sell among the above list is KeyCorp. KeyCorp is the parent holding company for KeyBank National Association (KeyBank), its principal subsidiary, through which its banking services are provided. Through KeyBank and certain other subsidiaries, the company provides a range of retail and commercial banking, commercial leasing, investment management, consumer finance and investment banking products and services to individual, corporate and institutional clients through two business segments: Key Community Bank and Key Corporate Bank. KeyCorp's EPS forecast for the current year is $0.87 and next year is $0.79. According to consensus estimates, its top line is expected to decline 8.00% in the current year and grow 1.40% next year.

I am concerned about KeyCorp's prospects for core earnings growth, as its efficiency ratio remains elevated, loan balances continue to decline, and NIM is expected to remain under pressure. Although KeyCorp remains well capitalized vs. peers, I am also concerned about capital deployment. I don’t see any share repurchases imminent, while there is a risk of an acquisition at an unattractive price. In addition, the macro environment has become incrementally worse off late. Thus, there is more downside risk for KeyCorp as compared to upside in the near term.

One of the stocks in above list for which I don’t agree with Tudor Investment Corp., and would actually like to go long, is Microsoft. Microsoft’s EPS forecast for the current year is $2.85 and next year is $3.17. According to consensus estimates, its top line is expected to grow 6.80% in the current year and 6.90% next year. At 8x-9x current year (June 12) EPS, I find Microsoft very attractive. At these levels, I don’t think the market is pricing in any of the positive initiatives the company is taking. Some of the important initiatives that can drive meaningful growth over the next one year are the Windows 8 launch, Office 365, which is gaining traction, and a successful launch of Nokia's (NOK) WP7 phones.

In addition, Microsoft’s excess cash position provides a downside cushion. As valuations of other tech companies reach more reasonable levels due to the market correction, several attractive acquisition opportunities may arise. I think Microsoft offers an attractive risk reward for investors who can hold the stock for the next couple of years. Microsoft’s significant potential to increase its dividend pay-out ratio also supports the upside thesis.

For other stocks in the above list, here are some of the specifics about these companies, including a brief description of their businesses, and growth expectations (top line and bottom line):

MetLife, Inc. is a provider of insurance, annuities and employee benefit programs. Through its subsidiaries and affiliates, MetLife operates in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. It is organized into five segments: Insurance Products, Retirement Products, Corporate Benefit Funding and Auto & Home (collectively, U.S. Business) and International. MetLife's EPS forecast for the current year is $5.21 and next year is $5.82. According to consensus estimates, its top line is expected to grow 24.20% in the current year and 4.80% next year.

Nielsen Holdings N.V. is a global information and measurement company. The company provides clients with an understanding of consumers and consumer behaviour. It delivers critical media and marketing information, analytics and industry expertise about what consumers buy and what consumers watch (consumer interaction with television, online and mobile) on a global and local basis. The company has a presence in approximately 100 countries, including many developing and emerging markets. Nielsen's EPS forecast for the current year is $1.50 and next year is $1.78. According to consensus estimates, its top line is expected to grow 8.20% in the current year and 5.80% next year.

HCA Holdings, Inc. is a non-governmental hospital operator in the United States and an integrated provider of health care and related services. The company has three business segments: Western Group, Central Group and Eastern Group. The company provides services through a network of acute care hospitals, outpatient facilities, clinics and other patient care delivery settings. HCA's EPS forecast for the current year is $3.39 and next year is $3.81. According to consensus estimates, its top line is expected to grow 5.40% next year.

Activision Blizzard, Inc. is an online, personal computer, console, handheld, and mobile game publisher. Activision Blizzard operates three operating segments: Activision Publishing, Inc.; Blizzard Entertainment, Inc.; and Activision Blizzard Distribution. Activision's EPS forecast for the current year is $0.72 and next year is $0.91. According to consensus estimates, its top line is expected to decline 14.80% in the current year and grow 11.90% next year.

NII Holdings, Inc. provides wireless communication services under the Nextel brand with its principal operations located in Mexico, Brazil, Argentina, Peru and Chile. NII's EPS forecast for the current year is $2.53 and next year is $2.82. According to consensus estimates, its top line is expected to grow 24.80% in the current year and 13.60% next year.

Source: Fund Investor Paul Tudor Jones Has Cut His Positions In These Top Stocks