Seeking Alpha
Profile| Send Message|
( followers)  

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 firm has offices in Connecticut, Massachusetts, Washington D.C., New York, Singapore, Australia, and England.

Investment strategy: Tudor Investment Corporation applies both fundamental and technical analysis to identify investment opportunities. The firm reflects bias toward stocks with above-average growth potential, and sector weightings are generally overweighted depending on the portfolio manager's research of a particular industry. The chief investment officer guides the investment process, with inputs offered by the investment professionals. Portfolio managers have discretion over their decisions.

The following is a list of top holdings of Tudor Investment Corp.

Stock

Symbol

Shares Held - 06/30/2011

% of Portfolio

Change in shares

Microsoft Corporation

MSFT

1,165,600

2.95

-407,175

Google Inc.

GOOG

54,100

2.66

17,700

Prologis

PLD

553,700

1.93

553,700

Progenics Pharmaceuticals Inc.

PGNX

2,342,388

1.63

0

Arch Coal Inc.

ACI

618,800

1.6

606,700

Gain Capital Holdings, Inc.

GCAP

2,235,069

1.48

-125,000

Alexandria Real Estate Equities Inc.

ARE

175,000

1.32

175,000

Noble Energy, Inc.

NBL

138,700

1.21

73,800

Comcast Corporation

CMCSK

500,000

1.18

500,000

Exxon Mobil Corp.

XOM

145,000

1.15

91,900

Source: 13F filing

My favourite stock in the above list is Microsoft.

Microsoft’s stock price has gained 5% in last 3 months vs. 5.5% decline in NASDAQ (QQQ) and 9.9% decline in S&P500 (SPY). I believe Microsoft is still undervalued and this outperformance can continue going forward. Microsoft’s EPS forecast for the current year is $2.86 and next year is $3.13. According to consensus estimates, its top line is expected to grow 6.50% in the current year and 6.90% next year. At 8.6x next year's 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. Microsoft recently raised its dividend by 25% and it has significant potential to increase its dividend pay-out ratio further to support the stock. I think Microsoft offers an attractive risk reward for investors who can hold the stock for the next couple of years.

For other stocks in the above list, here are some of the specifics about these companies, including a brief description of their business, growth expectations (topline and bottomline):

Google Inc. generates revenue primarily by delivering online advertising. The Company focuses on areas, such as search, advertising, operating systems and platforms, and enterprise. Businesses use its AdWords program to promote products and services with targeted advertising. In addition, the third parties that make up the Google Network use its AdSense program to deliver relevant ads that generate revenue and enhance the user experience. Google's EPS forecast for the current year is $35.47 and next year is $42.01. According to consensus estimates, its top line is expected to grow 30.20% in the current year and 21.00% next year.

ProLogis is a global provider of industrial distribution facilities. It is a real estate investment trust. It is engaged in the development of properties for contribution to property funds, in which it maintains an ownership interest and the management of those property funds and the properties they own. On June 3, 2011, the Company merged with AMB Property Corporation.

Progenics Pharmaceuticals, Inc. is a biopharmaceutical company focused on the development and commercialization of therapeutic products to treat the unmet medical needs of patients with debilitating conditions and life-threatening diseases. The Company’s principal programs are directed toward supportive care, oncology and virology. Progenics' EPS forecast for the current year is $0.28 and next year is -$0.13. According to consensus estimates, its top line is expected to decline 27.90% next year.

Arch Coal, Inc. is a coal producer company. During the year ended December 31, 2010, the Company sold 162.8 million tons of coal, including approximately 6.9 million tons of coal it purchased from third parties. It sells all of its coal to power plants, steel mills and industrial facilities. Arch's EPS forecast for the current year is $2.02 and next year is $3.43. According to consensus estimates, its top line is expected to grow 42.20% in the current year and 27.10% next year.

GAIN Capital Holdings Inc. is an independent provider of online forex trading. GAIN Capital offers online trading services, specializing in foreign exchange, contracts for difference and equities to retail and institutional traders worldwide. GAIN Capital's EPS forecast for the current year is $0.65 and next year is $0.81. According to consensus estimates, its top line is expected to grow 1.50% in the current year and 12.40% next year.

Alexandria Real Estate Equities, Inc. is a real estate investment trust focused principally on cluster development through the ownership, operation, management, selective acquisition, development, and redevelopment of properties containing life science laboratory space. The Company is the provider of real estate, technical infrastructure, and services to diverse life science industry. Client tenants include institutional (universities and independent not-for-profit institutions), pharmaceutical, biotechnology, medical device, product, service, and government agencies. Alexandria's EPS forecast for the current year is $4.41 and next year is $4.68. According to consensus estimates, its top line is expected to grow 17.90% in the current year and 6.10% next year.

Noble Energy, Inc. is an independent energy company, which is engaged in the oil and gas exploration and production worldwide. The Company has operations in four main areas: the Central DJ Basin onshore United States; the deepwater Gulf of Mexico; offshore West Africa, and offshore Eastern Mediterranean. Noble Energy's EPS forecast for the current year is $5.02 and next year is $6.97. According to consensus estimates, its top line is expected to grow 23.80% in the current year and 26.60% next year.

Comcast Corporation is a provider of video, high-speed Internet and phone services (cable services) to residential and business customers in the United States. Comcast operates in two segments: Cable and Programming. Comcast's EPS forecast for the current year is $1.61 and next year is $1.93. According to consensus estimates, its top line is expected to grow 48.40% in the current year and 7.80% next year.

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. It also has interests in electric power generation facilities. Exxon Mobil's EPS forecast for the current year is $8.61 and next year is $8.89. According to consensus estimates, its top line is expected to grow 23.20% in the current year and 6.30% next year.

Source: A Look At Paul Tudor Jones' Top 10 Holdings