28 Oct

Analyzing Tudor Investment’s Top Holdings

WRITTEN BY Rabindra Samanta

Tudor Investment founder and CIO Paul Tudor Jones II is a prominent fund manager. His macro investment strategies have helped investors understand the opportunities in various securities. Tudor Investment’s assets under management exceed $3.5 billion.

Top holdings

In the second quarter, Tudor Investment’s top five holdings were the SPDR S&P 500 Trust ETF (SPY) put option, iShares MSCI Emerging Markets ETF (EEM), SPDR S&P 500 Trust ETF (SPY) call option, Celgene (CELG), and SunTrust Banks (STI). These holdings made up 19.13%, 6.61%, 3.48%, 2.95%, and 1.86% of the fund, respectively. The fund’s position in the SPY put option exceeded its SPY call option position by 15.65 percentage points, signaling it is hedging against downside risk. As of October 25, the broader-market S&P 500 had returned 20.6% year-to-date.

Tudor’s top buys

Tudor Investment’s top five buys in the second quarter were the SPDR S&P 500 Trust ETF put option, iShares MSCI Emerging Markets ETF (EEM), SPDR S&P 500 Trust ETF call option, Anadarko Petroleum (APC), and SunTrust Banks. Tudor increased its holdings in these stocks by 16.36, 4.88, 2.76, 1.73, and 1.32 percentage points, respectively. Its strong EEM position signals optimism about emerging markets.

As of October 25, EEM had returned 9.3% year-to-date. Meanwhile, the iShares MSCI EAFE ETF (EFA), which tracks large and mid-cap stocks in major developed markets excluding the US and Canada, had returned 14%.

Sector analysis

Tudor Investment had strong healthcare and information technology holdings in the second quarter. The sectors represented 14.76% and 21.78% of the fund, respectively.

As of October 25, the Technology Select Sector SPDR ETF (XLK) had risen 33.8% year-to-date, outperforming other SPDR ETFs. Meanwhile, the Health Care Select Sector SPDR ETF (XLV) had risen 6.4%, making it the second-weakest among SPDR ETFs.

Information technology stocks tend to align with US-China trade developments. Meanwhile, the 2020 presidential election could impact healthcare stocks.

Tudor’s top sells

In the second quarter, Tudor Investment reduced its holdings in the SPDR S&P 500 ETF by 4.4 percentage points. The fund also reduced its holdings in Celgene put options and common shares. Takeda Pharmaceutical was among its top five sells in the second quarter. The fund cut its position in the stock by almost one percentage point.

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