Tudor Investment Corp. recently disclosed its portfolio updates for the fourth quarter of 2020, which ended on Dec. 31.
Founded by Paul Tudor Jones (Trades, Portfolio) II in 1980, Tudor Investment Corp. has since grown into a global firm with offices in Connecticut, New York, Palm Beach, London, Singapore and Sydney. The firm is perhaps best known for its discretionary macro trading, and it focuses on model-driven and systematic investment approaches. The firm believes that it is necessary to continuously innovate its strategies in order to keep and expand its edge in ever-evolving markets.
Based on its investing strategy, the firm’s biggest sells during the quarter were Advanced Disposal Services Inc. (NYSE:ADSW) and GCI Liberty Inc. (NASDAQ:GLIBA), while its top buys were Tiffany & Co. (NYSE:TIF) and C3.ai Inc. (NYSE:AI).
Advanced Disposal Services
The firm exited its 3,915,366-share stake in Advanced Disposal Services Inc. (NYSE:ADSW), impacting the equity portfolio by -5.15%. During the quarter, shares traded for an average price of $30.27.
Advanced Disposal Services is a waste disposal company based in Florida. It provides collection and recycling services for residential, commercial, industrial and construction customers in several eastern U.S. states. The company was acquired by Waste Management Inc. (WM) on Oct. 30 in an all-cash transaction.
On Feb. 25, shares of Waste Management, which Advanced Disposal is now a part of, traded around $112.68 for a market cap of $47.69 billion. According to the GuruFocus Value chart, the stock is fairly valued.
The company has a financial strength rating of 4 out of 10 and a profitability rating of 7 out of 10. The cash-debt ratio of 0.04 is lower than 91% of industry peers, though the Piotroski F-Score of 6 out of 9 indicates the company’s financial situation is stable. The return on invested capital has typically surpassed the weighted average cost of capital in the past, so the company’s operations are profitable.
GCI Liberty
The firm also sold out of its 870,052-share GCI Liberty Inc. (NASDAQ:GLIBA) position, which had a -3.10% impact on the equity portfolio. Shares traded for an average price of $87.36 during the quarter.
GCI Liberty, which consists of a subsidiary of the same name and interests in other telecommunications companies, offers broadband, television, tariff information, bills payment, connection and installation, among other related services. On Dec. 18, GCI Liberty was acquired by Liberty Broadband Corp. (LBRDA) in a stock-for-stock merger.
On Feb. 25, shares of Liberty Broadband, which GCI Liberty is now a part of, traded around $140.42 for a market cap of $34.68 billion. According to the GF Value chart, the stock is modestly overvalued.
The company has a financial strength rating of 5 out of 10 and a profitability rating of 3 out of 10. The Piotroski F-Score of 5 out of 9 and Altman Z-Score of 9.37 indicate the company is in a good financial position. The company’s profitability metrics have been heavily affected by spinoffs, external investments and acquisitions over the past decade, but the WACC has been consistently higher than the ROIC, indicating difficulties turning a profit on its operations.
Tiffany
The firm increased its Tiffany (NYSE:TIF) investment by 818,125 shares, or 11,259.63%, for a total holding of 825,391 shares. The trade had a 3.04% impact on the equity portfolio. During the quarter, shares traded for an average price of $128.19.
Tiffany is an American luxury retail company whose offerings include jewelry, china, crystal, stationary, fragrances and watches, among other goods and accessories. On Jan. 7, the company was acquired by luxury products group LVMH Moet Hennessy Louis Vuitton SE (MIL:LVMH) in an all-cash deal.
On Feb. 25, shares of Louis Vuitton, which Tiffany is now a part of, traded around 531.40 euros ($647.08) for a market cap of 268.41 billion euros. According to the GF Value chart, the stock is significantly overvalued.
The company has a financial strength rating of 5 out of 10 and a profitability rating of 8 out of 10. The interest coverage ratio of 22.67 and Altman Z-Score of 3.61 indicate the company is financially stable. The three-year revenue growth rate is 1.6%, while the three-year Ebitda growth rate is 9.1%.
C3.ai
The firm established a new position worth 750,000 shares in C3.ai Inc. (NYSE:AI), which had a 2.94% impact on the equity portfolio. Shares traded at an average price of $134.16 during the quarter.
C3.ai is an enterprise AI software provider for accelerating digital transformation. Its C3 AI Suite “provides comprehensive services to build enterprise-scale AI applications more efficiently and cost-effectively.” The company was founded by former Oracle Corp. (NYSE:ORCL) executive Tom Siebel.
On Feb. 25, shares of C3.ai traded around $114.31 for a market cap of $10.96 billion. Since the company went public in December of 2020, the share price has gained 23%.
The company has a financial strength rating of 8 out of 10. Following its public debut, it has no debt on its balance sheet. The operating margin of -39.55% and net margin of -36.14% indicate the company is not yet profitable.
Portfolio overview
As of the quarter’s end, the firm held common stock shares of 1,299 companies valued at a total of $3.54 billion.
The top holdings were Tiffany with 3.07% of the equity portfolio, C3.ai with 2.94% and Slack Technologies Inc. (NYSE:WORK) with 2.64%. In terms of sector weighting, the firm was most invested in technology, financial services and health care.
Disclosure: Author owns no shares in any of the stocks mentioned. The mention of stocks in this article does not at any point constitute an investment recommendation. Portfolio updates reflect only common stock positions as per the regulatory filings for the quarter in question and may not include changes made after the quarter ended.
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