Paul Tudor Jones' Hedge Fund Tudor Investment Corp: 13F Filing Q1 2009

This is the 1st Quarter 2009 edition of our ongoing hedge fund portfolio tracking series. Before reading this update, make sure you check out the Hedge Fund 13F filings series preface.

This week is 'global macro week' here at Market Folly and we'll be covering some of the equity positions of the major global macro strategy hedge funds. We want to start off this week with a slight disclaimer. Since global macro funds trade all different types of asset classes, they're not an ideal bunch to track or to clone a portfolio from. However, they are some of the smartest minds out there in terms of secular themes, trading, and market timing. As such, we monitor their movements in equities to get a sense as to what sectors they like, when they're moving out of long equity positions, and to see if we can see any secular themes they might be playing. So, this week is not so much about tracking as much as it is about taking a step back and observing the 'bigger picture.'

First up, we have legendary global macro trader Paul Tudor Jones. He comes from the group of "offspring" of the legendary Commodities Corporation. Tudor Jones emerged as a successful offspring along with fellow great macro traders Bruce Kovner (Caxton Associates) and Louis Bacon (Moore Capital Management). Taken from Wikipedia, the bio of PTJ is as follows: "In 1980 he founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency and commodity markets. One of Jones' earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions. Jones uses a global macro strategy when trading in some of his funds. This strategy can be seen in the 1987 PBS film "TRADER: The Documentary". The film shows Mr. Jones as a young man predicting the 1987 crash. Jones' firm currently manages$17.7 billion (as of June 1, 2007). Their investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the U.S. and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems." So, as you can see, PTJ is quite an accomplished gentleman, earning him the title of THE macro trader.

If you want to hear some insightful thoughts from Tudor Jones himself, head over to our post on Hedge Fund manager interviews or our post on quotes from PTJ. In terms of other activity we've covered, Tudor has been busy in the past. Previously, they filed numerous 13G's with the SEC, amending a bunch of their holdings. Additionally, we learned that they will be starting a new Momentum Fund. They still of course have their main flagship BVI Global fund that finished 2008 -4.5% as noted in our 2008 hedge fund performance numbers. Keep in mind that as of right now, Tudor has only a minuscule amount of their overall portfolio allocated to equities. They are a multi-billion dollar firm and only have equity exposure of a few hundred million, as detailed below.

The following were Tudor's long equity, note, and options holdings as of March 31st, 2009 as filed with the SEC. We have not detailed the changes to every single position in this update, but we have covered all the major moves. All holdings are common stock unless otherwise denoted.


Some New Positions (Brand new positions that they initiated in the last quarter):
Select Sector Financial (XLF) Calls, iShares China (FXI), Select Sector Consumer Discretionary (XLY), Philip Morris International (PM)

The rest of their brand new positions are much smaller, as each are less than 0.5% of Tudor's portfolio: American Electric Power (AEP), Altria Group (MO), Health Care REIT (HCN), Waste Management (WMI), Omnicom (OMC), EOG Resources (EOG), Nasdaq (NDAQ), General Electric (GE), Sunoco (SUN), Alcoa (AA), Aflac (AFL), Analog Devices (ADI), NYSE Euronext (NYX), Reynolds American (RAI), Select Sector Consumer Staples (XLP), Ventas (VTR), Arch Coal (ACI), Aes (AES), Goldman Sachs (GS), Peabody Energy (BTU), International Game Technology (IGT), Consol Energy (CNX), Bunge (BG), Pfizer (PFE), Stericycle (SRCL), Supervalu (SVU)


Some Increased Positions (A few positions they already owned but added shares to)
Select Sector Financials (XLF): Increased by 643%
Select Sector Healthcare (XLV): Increased by 331%
Semiconductor Holdrs (SMH): Increased by 138%
Select Sector Energy (XLE): Increased by 20%


Some Reduced Positions (Some positions they sold some shares of - note not all sales listed)
Kraft Foods (KFT): Reduced by 95%
Prudential (PRU): Reduced by 94%
Harris Corp (HRS): Reduced by 93%
Metlife (MET): Reduced by 92%
SLM Corp (SLM): Reduced by 82%
Devon Energy (DVN): Reduced by 62%
US Steel (X): Reduced by 60%


Removed Positions (Positions they sold out of completely)
Genentech (DNA), Wyeth (WYE), Monsanto (MON), Mako Surgical (MAKO), Berkshire Hathaway (BRK-A), Select Sector Technology (XLK), CIT Group (CIT), Mastercard (MA), Blackrock (BLK), Teva Pharma (TEVA), Wendys Arbys (WEN), Cigna (CI), Citigroup (C), Corning (GLW), Select Sector Industrial (XLI), Market Agribusiness ETF (MOO), Sandisk (SNDK), Agilent (A), Potash (POT). They also sold out of numerous other positions that were each less than 0.5% of their overall portfolio.


Top 15 Holdings (by % of portfolio)

1. Select Sector Financials (XLF) Calls: 13.63% of portfolio
2. Select Sector Financials (XLF): 11.25% of portfolio
3. Semiconductor Holdrs (SMH): 10.3% of portfolio
4. Progenics Pharmaceuticals (PGNX): 5% of portfolio
5. Select Sector Healthcare (XLV): 4.6% of portfolio
6. iShares China (FXI): 3.2% of portfolio
7. Taleo Corp (TLEO): 2.76% of portfolio
8. Select Sector Energy (XLE): 2.1% of portfolio
9. Switch & Data (SDXC): 1.4% of portfolio
10. Select Sector Consumer Discretionary (XLY): 0.87% of portfolio

Upon looking at Tudor's portfolio, many will obviously point to the fact that they have large long exposure to financials via XLF and XLF calls. And, this is worth highlighting as it is clear they've made a sector bet in that regard having increased their position there. However, we will point to the bigger picture and note that Tudor's long equity exposure is very minimal, at best. As such, we could interpret this as them seeing further downside risk in equities. Or, they could simply be pursuing opportunities in other markets. Assets from the collective holdings reported to the SEC via 13F filing were $290 million this quarter compared to $334 million last quarter, so we see a slight dip in long equity exposure on their part from quarter to quarter. However, the main thing to take away is that Tudor is a multi-billion dollar firm. They only have a couple hundred million in long equity exposure, which is not much in the bigger scheme of things. That is the main thing we've taken away from examining their portfolio.

At the same time though, there are some interesting holdings in their portfolio. Besides their interesting financials position, Tudor also has a larger stake in semiconductors and health care, as both are within their top 5 positions. While they added heavily to their financial exposure, they added quite heavily to their semiconductor position too (via SMH) and some people may overlook that. Overall, it's easy to see which sectors Tudor might like more than others on the long equity side of things due to the creations known as sector exchange traded funds (ETFs). Tudor seems to like them to gain exposure to a certain sector and that makes sense given their global trading nature. This is just one of the 40+ prominent funds that we'll be covering in our hedge fund Q1 2009 portfolio series. We've already covered:

- Gurus such as: Soros Fund Management (George Soros), and Jim Rogers.

- 'Tiger Cub' portfolios like: Andreas Halvorsen's Viking Global, Stephen Mandel's Lone Pine Capital, John Griffin's Blue Ridge Capital, Lee Ainslie's Maverick Capital, Shumway Capital Partners (Chris Shumway), Chase Coleman's Tiger Global,

- Outperforming funds like: John Paulson's hedge fund Paulson & Co, Eric Mindich's Eton Park Capital, Raj Rajaratnam's Galleon Group,

- Value and activist funds such as: David Einhorn's Greenlight Capital, Seth Klarman's Baupost Group, Whitney Tison's T2 Partners, Philip Falcone's Harbinger Capital Partners, Ricky Sandler's Eminence Capital,

- Concentrated funds that play secular/macro themes such as: Timothy Barakett's Atticus Capital, Bret Barakett's Tremblant Capital Group, Boone Pickens' BP Capital Management, John Burbank's Passport Capital

- And, newer funds on the scene: David Stemerman's Conatus Capital. Check back each day as we cover new fund portfolios.

Paul Tudor Jones' Tudor Investment Corp 13F Filing, Q4 2008

This is the 4th Quarter 2008 edition of our ongoing hedge fund portfolio tracking series. Before reading this update, make sure you check out the Hedge Fund 13F filings preface.

This week, turning the focus to global macro funds, we'll be checking in on Paul Tudor Jones' Tudor Investment Corp. Do note that global macro funds are typically not equity focused funds. While they do indeed have equity exposure, the majority of their holdings are in other markets. So, we mainly track them to check in on their sector exposure to see what types of global macro themes they may be investing in. This is a switch from some of the more value oriented funds we've been covering, like the 'Tiger Cub' funds including Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, John Griffin's Blue Ridge Capital, and Andreas Halvorsen's Viking Global. Global macro funds seek to find investments in whatever market they can gain an edge, whether it be equities, bonds, currencies, debt, commodities, and more. But, they are only required to disclose equity holdings.

Paul Tudor Jones comes from the group of "offspring" of the legendary Commodities Corporation. Tudor Jones emerged as a successful offspring along with fellow great macro traders Bruce Kovner (Caxton Associates) and Louis Bacon (Moore Capital Management). Taken from Wikipedia, the bio of PTJ is as follows: "In 1980 he founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency and commodity markets. One of Jones' earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions. Jones uses a global macro strategy when trading in some of his funds. This strategy can be seen in the 1987 PBS film "TRADER: The Documentary". The film shows Mr. Jones as a young man predicting the 1987 crash. Jones' firm currently manages$17.7 billion (as of June 1, 2007). Their investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the U.S. and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems." So, as you can see, PTJ is quite an accomplished gentleman, earning him the title of THE macro trader.

If you want to hear some insightful thoughts from Tudor Jones himself, head over to our post on Hedge Fund manager interviews or our post on quotes from PTJ. We should note that in the past, Tudor's equity portion of their portfolio has been run by James Pallotta in Tudor's Raptor fund. But, Pallotta recently left Tudor to start his own hedge fund. So, we've started to cover Pallotta's new Raptor Capital Management, and we will also continue to track Tudor. Pallotta was essentially responsible for the great track record at Tudor, so that's why we continue to track his 'spun-off/new' venture. We'll track Tudor simply because they have some of the greatest minds in the macro game. And, that's why we track macro funds in the first place: to monitor their sector exposure to pick up any possible macro themes they might be playing.

In terms of recent activity, Tudor has been pretty busy. They earlier filed numerous 13G's with the SEC, amending a bunch of their holdings. Additionally, we just learned that they will be starting a new Momentum Fund. They still of course have their main flagship BVI Global fund that finished 2008 -4.5% as noted in our 2008 hedge fund performance numbers. Keep in mind that as of right now, Tudor has only a miniscule amount of their overall portfolio allocated to equities. They are a multi-billion dollar firm and only have equity exposure of a few hundred million, as detailed below.

The following were their long equity, note, and options holdings as of December 31st, 2008 as filed with the SEC. We have not detailed the changes to every single position in this update, but we have covered all the major moves. All holdings are common stock unless otherwise denoted.


Some New Positions (Brand new positions that they initiated in the last quarter):
Kraft (KFT)
Genentech (DNA)
Prudential (PRU)
Harris (HRS)
Amylin (AMLN)
Monsanto (MON)
Metlife (MET)
Semiconductor Holdrs (SMH)
State Street (STT)
Berkshire Hathaway (BRK-A)
CIT Group (CIT)
Mastercard (MA)
Blackrock (BLK)
Teva (TEVA)
Vertex Pharma (VRTX)
Wendys (WEN)
Cigna (CI)
Citigroup (C)
Devon Energy (DVN)
Corning (GLW)
SLM (SLM)
Select Sector Industrial (XLI)
Market Vectors Agribusiness (MOO)
Sandisk (SNDK)
Legg Mason (LM)
Agilent (A)
US Steel (X)
Potash (POT)
Och Ziff (OZM)
Onyx Pharma (ONXX)


Some Increased Positions (A few positions they already owned but added shares to)
Select Sector Energy (XLE): Increased by 165%
Select Sector Healthcare (XLV): Increased by 137%
Dell (DELL): Increased by 61%
Select Sector Financial (XLF): Increased position by 57%
Hartford Financial (HIG): Increased by 31%


Some Reduced Positions (Some positions they sold some shares of - note not all sales listed)
Activision Blizzard (ATVI): Reduced by 95%
Invesco (IVZ): Reduced by 92%
Coach (COH): Reduced by 61%
Wyeth (WYE): Reduced by 31%
3Com (COMS): Reduced by 26%
Ishares Emerging Markets (EEM): Reduced by 18.5%
Select Sector Technology (XLK): Reduced by 13.6%


Removed Positions (Positions they sold out of completely)
SPDR Gold Trust (GLD)
Willis Group (WSH)
NBTY (NTY)
Select Sector Materials (XLB)
Jamba (JMBA)
Tenet (THC)
Petroleo Brasileiro (PBR)
Ico Global (ICOG)
Viacom (VIA-B)
JPMorgan Chase (JPM)
Theravance (THRX)
American Eagle Outfitters (AEO)
RCN (RCNI) Calls
Accenture (ACN)
Pfizer (PFE)
Select Sector Consumer Staples (XLP)
Ishares China (FXI)
Cisco (CSCO)
Macrovision (MVSN)
Terrestar (TSTR)
Fomento Economico (FMX)
Ishares S. Korea (EWY)
Home Inns & Hotels (HMIN)
Fibertower (FTWR)
Fidelity Info (FIS)
KBW Bank ETF (KBE)
Heinz (HNZ)
Anadarko Petroleum (APC)
Ishares Japan (EWJ)
Plains Exploration (PXP)


Top 20 Holdings (by % of portfolio)

1. Kraft Foods (KFT): 9.83% of portfolio
2. Progenics Pharma (PGNX): 6.97% of portfolio
3. Genentech (DNA): 5.88% of portfolio
4. Prudential Financial (PRU): 4.98% of portfolio
5. Harris Corp (HRS): 4.86% of portfolio
6. Amylin Pharma (AMLN): 4.81% of portfolio
7. Wyeth (WYE): 4.53% of portfolio
8. Monsanto (MON): 3.73% of portfolio
9. Metlife (MET): 3.59% of portfolio
10. Semiconductor Holdrs (SMH): 3.54% of portfolio
11. State Street (STT): 3.29% of portfolio
12. Mako Surgical (MAKO): 3.16% of portfolio
13. Berkshire Hathaway (BRK-A): 2.88% of portfolio
14. Select Sector Technology (XLK): 2.56% of portfolio
15. CIT Group (CIT): 2.47% of portfolio
16. Select Sector Financial (XLF): 1.87% of portfolio
17. Mastercard (MA): 1.72% of portfolio
18. Blackrock (BLK): 1.7% of portfolio
19. Select Sector Energy (XLE): 1.69% of portfolio
20. Taleo Corporation (TLEO): 1.68% of portfolio

Last quarter, Tudor didn't have a large percentage of their assets in equity markets. And, this quarter, that trend continued. Assets from the collective long US equity, options, and note holdings were $452 million last quarter and were $334 million this quarter. As we mentioned in the beginning, due to their global macro nature, they are invested in all kinds of markets. And, more often than not, equity exposure takes a backseat to currencies, commodities, futures, and the like. But, at the same time, they had been ratcheting down their equity exposure as things started to deteriorate in the stock market, a wise move. This is one major advantage of the global macro strategy. They are nimble and move wherever they see opportunity. This is just one of many funds in our hedge fund portfolio tracking series in which we're tracking 35+ prominent funds. We've already covered Paulson & Co (John Paulson), Carl Icahn, Warren Buffett, Stephen Mandel's Lone Pine Capital, George Soros, Bill Ackman's Pershing Square, Andreas Halvorsen's Viking Global, Timothy Barakett's Atticus Capital, David Einhorn's Greenlight Capital, Seth Klarman's Baupost Group, Peter Thiel's Clarium Capital, Bret Barakett's Tremblant Capital, David Stemerman's Conatus Capital, James Pallotta's Raptor Capital Management, Lee Ainslie's Maverick Capital, John Griffin's Blue Ridge Capital, and Bruce Kovner's Caxton Associates. Look for our updates as we will be covering a new fund each day.

Tudor Investment Corp (Paul Tudor Jones) Files 13D's

Paul Tudor Jones' hedge fund Tudor Investment Corp has filed 2 separate amended 13D's with the SEC. Firstly, Tudor has disclosed a 19.4% ownership stake in Uni-Pixel (UNXL). This stake is derived from their ownership of 769,974 Series B Convertible Preferred Stock (which are convertible into 3,849,870 common stock shares), as well as 1,645,647 warrants to purchase common stock. They currently own 5,495,517 shares. The filing was made due to activity on December 31st, 2008. You can view the rest of Tudor's portfolio holdings here.

Secondly, Tudor also disclosed a 12.9% ownership stake in Incentra Solutions (ICNS). They currrently own 3,320,203 shares of common stock and 903,994 shares of Series A Preferred Stock that, if converted, would give them 2,711,982 additional shares of common stock.

About Tudor: Taken from Wikipedia, the bio of PTJ is as follows, "In 1980 he founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency and commodity markets. One of Jones' earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions. Jones uses a global macro strategy when trading in some of his funds. This strategy can be seen in the 1987 PBS film "TRADER: The Documentary". The film shows Mr. Jones as a young man predicting the 1987 crash. Jones' firm currently manages$17.7 billion (as of June 1, 2007). Their investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the U.S. and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems." So, as you can see, PTJ is quite an accomplished gentleman, earning him the title of the macro trader. If you want to hear some insightful thoughts from Paul Tudor Jones himself, head over to our post on Hedge Fund manager interviews or our post on quotes from PTJ. Tudor's 13F filing disclosing their portfolio positions can be found here.

Taken from Google Finance,

Incentra Solutions is "a provider of information technology (IT) services and solutions to enterprises and managed service providers in North America and Europe. Solutions offered by the Company include hardware and software products, maintenance contracts, professional services, recurring managed services and capital financing solutions."

Taken from their company website,

UniPixel "intends to become the core developer and licensor of the highest performance and most efficient display panel technologies in the industry. These display panel technologies will enhance the application devices to which they are incorporated delivering superior results to the end users of the devices."

Hedge Fund Tracking: Tudor Investment Corp's 13F Filing (Paul Tudor Jones)

(Note: Before reading this update, make sure you check out the preface to the series I'm doing on Hedge Fund 13F's here).

Time to continue the Hedge Fund tracking series! If you've missed them, I've already covered Jeffrey Gendell's Tontine Partners here, Bret Barakett's Tremblant Capital here, Peter Thiel's Clarium Capital here, Stephen Mandel's Lone Pine Capital here, Lee Ainslie's Maverick Capital here, John Griffin's Blue Ridge Capital here, Boone Pickens' BP Capital here, and Louis Bacon's Moore Capital Management here.

This week, I'm taking a slightly different approach to the hedge fund tracking series. I'm doing so because the 13F SEC filings are filed on a quarterly basis, so these materials are time sensitive and the next ones are due out in November. I stated in my series preface that you need to treat these as a lagging indicator, because that's what they are. The holdings discussed below reflect portfolio holdings as of June 30th, 2008. So, since these forms are so tedious to sort through, I've condensed the rest of the hedge funds I track to summarize their major moves and top holdings.

Additionally, the majority of the rest of the funds I follow are macro funds. And, since 13F filings only detail equity holdings, we're left with a bit of a problem. Macro funds typically employ strategies that encompass many financial markets. Be it commodities, currency, futures, foreign markets.... you name it. So, these funds are much harder to track. Since they are not required to disclose positions held in those markets, we only get to see their equity holdings. But, at the same time, I still find the information useful because many of these funds have numerous large equity positions which give you a broad sense as to what their strategies may be.

So, next up in the macro hedge fund tracking series we have Tudor Investment Corp, the brainchild of Paul Tudor Jones. Taken from Wikipedia, the bio of PTJ is as follows: "In 1980 he founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency and commodity markets. One of Jones' earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions. Jones uses a global macro strategy when trading in some of his funds. This strategy can be seen in the 1987 PBS film "TRADER: The Documentary". The film shows Mr. Jones as a young man predicting the 1987 crash. Jones' firm currently manages$17.7 billion (as of June 1, 2007). Their investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the U.S. and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems." So, as you can see, PTJ is quite an accomplished gentleman, earning him the title of THE macro trader.

(If you want to hear some insightful thoughts from Paul Tudor Jones himself, head over to my post on Hedge Fund manager interviews. Also, you can check out some additional thoughts from Paul here.)

So, now that we've got a background on Jones and Tudor Investment Corp, let's take a quick look at his portfolio highlights. Keep in mind that this is merely a brief summary of Tudor's top holdings. Due to the time sensitive nature of the 13F material, I wanted to get this information posted before the next set of filings come out in November.

Top 20 Holdings by % of portfolio
1. Plains Exploration and Production (PXP) - Added to his position by $160 million
2. Anadarko Petroleum (APC) - Nearly doubled his stake
3. Mirant (MIR) - Increased position by 21%
4. Elan (ELN) - Decreased position by 22%
5. SPDR Trust (SPY) - New position
6. Entergy (ETR) - New position
7. Occidental Petroleum (OXY) - New position
8. NRG Energy (NRG) - Added to his position very slightly
9. Alcoa (AA) - Increased stake by nearly 33%
10. Mastercard (MA) - Increased stake by 12%
11. Wellpoint (WLP) - New position
12. Williams Companies (WMB) - Decreased position by 34%
13. Qualcomm (QCOM) - Decreased position by 30%
14. DirecTV (DTV) - Literally added only 3 more shares
15. Marvell Technology (MRVL) - Increased stake by 3.6%
16. Allegheny Energy (AYE) - Decreased stake by 26%
17. Fidelity Information Services (FIS) - Increased position by 76%
18. Verisign (VRSN) - Increased stake by 49%
19. CSX Corp (CSX) - Decreased stake by 18.6%
20. Heinz (HNZ) - Decreased position by 20.7%

At the time of the filing, Tudor Investment Corp's total equity portfolio totalled around $5.7 billion. So, I just want to re-emphasize that since they are a macro fund, they obviously have additional positions in the commodity, currency, futures, or other markets. But, at the same time, they still have a sizable chunk of money in the equity markets.

Paul Tudor Jones was out adding brand new positions to his portfolio in a big way. He established new positions in: The Spiders (SPY), Entergy (ETR), Occidental (OXY), and Wellpoint (WLP). Not only did he start new positions in these names, but he brought them all up to top 10 holdings within one quarter. I want to highlight his stakes in Entergy and Occidental, as they are both energy related. I'm slowly but surely starting to see ETR pop up in numerous hedge fund portfolios, so it's definitely worth keeping any eye on. These funds could be establishing this as one of their ways to play the nuclear energy space, as the alternative energy train picks up steam. We'll see if he adds to this position in the next round of 13F filings. At the time of filing, his stake in ETR was worth a bit over $201 million. Secondly, Occidental (OXY) is another 'hedge fund favorite' energy play. This integrated energy producer has definitely been firing on all cylinders fundamentally. But, with the recent volatility in the commodities markets, one would have to assume that PTJ has felt some pain with this position. He had this position as of June 30th (the time of the filing), and around then OXY was trading around $87.50. In the coming months, OXY would drop to as low as $65, before rebounding to current levels of around $80. So, we'll wait and see next time if he bailed ship or if he stuck with this name. At the time of filing, his position in OXY was worth $181 million. If I were to bet, I would say that he did not add to this position, because one of his rules is never to average down on a loser.

Interesting to see that Paul Tudor Jones decreased his position in Qualcomm (QCOM) by 30%. QCOM is by far one of the most common names in hedge fund portfolios these days. So, whether he was taking profits or saw something he fundamentally disliked remains to be seen. We'll have to monitor this next quarter to see if he continues to sell down his position. It's always interesting to see how various funds handle a position they have in common with numerous other well-respected funds. Tudor's decision to sell off 30% comes while fellow global macro manager and friend Louis Bacon was adding to his QCOM position, as I wrote about in Moore Capital Management's 13F analysis.

I also want to point out his decision to add to his Verisign (VRSN) position. He upped his stake by nearly 50%, bringing it up to his 18th largest position. I haven't seen this name pop up in too many funds' portfolios, so I was intrigued to see him beef up his stake pretty substantially.

Lastly, just wanted to point out that, like his colleague Bacon, Tudor had pretty significant exposure to natural gas. In fact, Tudor's top 2 positions were both natural gas plays: PXP and APC. So, those positions undoubtedly forced him to make some decisions as they tanked over the past few months. It will be interesting to see how this potentially affected him, because his fund was up 3% year to date as of just a few weeks ago, as I wrote about in my hedge funds year-to-date performance update.

So, while last quarter's glimpse inside Tudor's portfolio is interesting, it will be much more interesting to see what they've done with these holdings come November. We already knew hedge funds (and macro funds in particular) had a rough July, as I noted here. And, it's easy to see why, with the heavy commodity exposure many of them had. But, as of a few weeks ago, Tudor was still up on the year, in a year when many funds are seeing red from all the whipsawing.

Tudor Investment Corp's full 13F filing listing every position can be found at the SEC.

Hedge Fund Tracking: Tudor Investment Corp (Paul Tudor Jones) - 13F Filing Q3 2008

This is the 3rd Quarter 2008 edition of our ongoing hedge fund tracking series. Before reading this update, make sure you check out the preface to the series we're doing on Hedge Fund 13F's here. We've already covered:

• Timothy Barakett's Atticus Capital
• Whitney Tilson's T2 Partners
• Peter Thiel's Clarium Capital
• Bill Ackman's Pershing Square
• Bret Barakett's Tremblant Capital
• John Paulson's Paulson & Co
• David Einhorn's Greenlight Capital
• Dan Loeb's Third Point

Next up, we have Paul Tudor Jones' Tudor Investment Corp. Tudor is a $17.7 billion global macro oriented set of hedge funds. The next few funds we will be covering are global macro oriented funds, which is a switch from some of the more value oriented funds we've been covering, like the 'Tiger Cub' funds including Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, John Griffin's Blue Ridge Capital, and Andreas Halvorsen's Viking Global. Global macro funds differ from value funds in that they seek to find investments in whatever market they can gain an edge, whether it be equities, bonds, currencies, debt, commodities, and more. So, keep in mind that these equity positions only represent a portion of the fund's overall holdings. They are not required to disclose holdings outside of equities, notes, and stock options.

Taken from Wikipedia, the bio of PTJ is as follows: "In 1980 he founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency and commodity markets. One of Jones' earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions. Jones uses a global macro strategy when trading in some of his funds. This strategy can be seen in the 1987 PBS film "TRADER: The Documentary". The film shows Mr. Jones as a young man predicting the 1987 crash. Jones' firm currently manages$17.7 billion (as of June 1, 2007). Their investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the U.S. and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems." So, as you can see, PTJ is quite an accomplished gentleman, earning him the title of THE macro trader.

If you want to hear some insightful thoughts from Paul Tudor Jones himself, head over to our post on Hedge Fund manager interviews. Also, you can check out some additional thoughts from Paul here. Tudor hasn't had a bad year, relatively speaking, as his BVI Fund is only -5% for the year. Recently, Tudor was forced to halt withdrawals from their BVI Global Fund. Additionally, its worth noting that James Pallotta, who runs Tudor's equity focused Raptor fund (and is largely responsible for most of the holdings below), will be leaving to start his own fund.

Before beginning, you might be interested in checking out Tudor's portfolio holdings from the second quarter 2008. The following were Tudor's long equity, note, and options holdings as of September 30th, 2008 as filed with the SEC.


New Positions (Brand new positions that they initiated in the last quarter):
Ishares Japan (EWJ)
KBW Bank ETF (KBE)
Technology ETF (XLK)
Ishares Korea (EWY)
Activision Blizzard (ATVI)
Fomento Economico (FMX)
Financials ETF (XLF)
Macrovision Solutions (MVSN)
Ishares China (FXI)
Energy ETF (XLE)
NBTY (NTY)
Gold ETF (GLD)
Anixter International (AXE)
Hubbell Class B Common Stock (HUB.B)
Coach (COH)
Hartford Financial (HIG)
Utilities ETF (XLU)
Merck (MRK)
3Com (COMS)
Dell (DELL)
Ingram Micro (IM)
Lehman Brothers (LEHMQ)
Financials ETF (XLF) Calls
Jamba (JMBAW) Warrants
Lehman Brothers (LEHMQ) Calls


Added to (Positions they already owned but added shares to)
Petroleo Brasileiro (PBR): Increased position by 6800%
Cisco (CSCO): Increased position by 47%
Accenture (ACN): Increased position by 39%
Viacom (VIA-B) Class B: Increased position by 8%


Some Reduced Positions (Positions they sold some shares of - note not all sales listed)
Anadarko Petroleum (APC): Decreased position by 81.5%
Jamba (JMBA): Decreased position by 80%
Plains Exploration (PXP): Decreased position by 79%
Fidelity National (FIS): Decreased position by 79%
Healthcare ETF (XLV): Decreased position by 74%
Invesco (IVZ): Decreased position by 71%
ICO Global (ICOG): Decreased position by 62%
Heinz (HNZ): Decreased position by 57%
Ishares Emerging Markets (EEM): Decreased position by 47%
Consumer Staples ETF (XLP): Decreased position by 47%
Wyeth (WYE): Decreased position by 27%
Switch & Data (SDXC): Decreased position by 20%
Terrestar (TSTR): Decreased position by 14%


Removed Positions (Positions they sold out of completely)
Elan (ELN)
Mirant (MIR)
S&P500 (SPY)
Entergy (ETR)
Occidental (OXY)
NRG Energy (NRG)
Alcoa (AA)
Mastercard (MA)
Calpine (CPN)
Wellpoint (WPN)
Williams Companies (WMB)
Biogen Idec (BIIB)
Frontier Oil (FTO)
UST (UST)
Apple (AAPL)
Knight Capital (NITE)
Activision (old shares converted into new ATVI combined company shares)
Walter Industries (WLT)
Steel Dynamics (STLD)
Priceline (PCLN)
Southwestern Energy (SWN)
Covidien (COV)
Devon Energy (DVN)
CSX Corp (CSX)
Verisign (VRSN)
Allegheny (AYE)
Marvell (MRVL)
DirecTV (DTV)
Qualcomm (QCOM)


Top 20 Holdings (by % of portfolio)

1. Plains Exploration (PXP): 12.5% of portfolio
2. Ishares Japan (EWJ): 11% of portfolio
3. Anadarko Petroleum (APC): 8.6% of portfolio
4. Heinz (HNZ): 7.9% of portfolio
5. Progenics Pharma (PGNX): 6.9% of portfolio
6. Wyeth (WYE): 4.8% of portfolio
7. Invesco (IVZ): 4.1% of portfolio
8. KBW Bank ETF (KBE): 3.7% of portfolio
9. Fidelity National (FIS): 3.7% of portfolio
10. Fibertower Corp (FTWR): 3.2% of portfolio
11. Technology ETF (XLK): 2.8% of portfolio
12. Taleo Corp (TLEO): 2.8% of portfolio
13. Mako Surgical (MAK): 2.8% of portfolio
14. Home Inns & Hotels (HMIN): 2.2% of portfolio
15. Ishares Korea (EWY): 1.7% of portfolio
16. Activision Blizzard (ATVI): 1.7% of portfolio
17. Fomento Economico (FMX): 1.5% of portfolio
18. Switch & Data (SDXC): 1.4% of portfolio
19. Financial ETF (XLF): 1.4% of portfolio
20. Terrestar (TSTR): 1.0% of portfolio

Assets from the collective holdings were $5.7 billion last quarter and were only $452 million this quarter. As you can see, Tudor shifted out of equities in a dramatic fashion. Please note that we have not detailed every single change to every single position in this update, but we have covered all the major moves. Also, keep in mind that these filings only include long equity, notes, and options holdings and do not reflect the cash or short portions of their portfolio. This is just one of many funds in our hedge fund tracking series in which we're tracking 35+ prominent funds. We've already covered Whitney Tilson's T2 Partners, Peter Thiel's Clarium Capital, Bill Ackman's Pershing Square, Stephen Mandel's Lone Pine Capital, Lee Ainslie's Maverick Capital, Timothy Barakett's Atticus Capital, John Griffin's Blue Ridge Capital, Bret Barakett's Tremblant Capital, Andreas Halvorsen's Viking Global, John Paulson's Paulson & Co, David Einhorn's Greenlight Capital, and Dan Loeb's Third Point. Overall, its been one of the worst years ever for hedge funds, as we noted in our recent October hedge fund performance update. Thus, the recent moves they've made in their portfolios become all the more interesting given the way the market has played out.

More on Tudor Investment Corp:
- Tudor halts withdrawals from its Global BVI Fund
- James Pallotta leaving Tudor to start own fund
- Tudor's 2nd quarter portfolio
- October hedge fund performance update
- Hedge Fund Rankings

Tudor Investment Corp Updates 8 Positions Via Amended 13G Filings

Hedge Fund Tudor Investment Corp ran by Paul Tudor Jones has just filed 8 separate amended 13G filings with the SEC due to activity on December 31st, 2008. They have previously held positions in all of these names and have adjusted them. Here are the position updates (in no particular order):

1. They now show a 0.04% ownership stake in Terrestar (TSTR) with 42,798 shares.
2. 1.9% ownership stake in BigString(BSGC) with 995,712 shares.
3. 0.6% ownership stake in Fibertower (FTWR) with 876,958 shares.
4. 1.2% stake in International Fight League (IFLI) with 955,886 shares.
5. 9.7% ownership stake in Progenics Pharmaceuticals (PGNX) with 2,888,513 shares.
6. 1% stake in ULURU (ULU) with 628,873 shares.
7. 12.6% stake in Enherent Corp (ENHT) with 6,593,336 shares.
8. 1% stake in KIT Digital (KITD) with 1,182,527 shares.
   

If you missed it back in late January, Tudor also filed numerous 13Ds on some other positions. If you're unfamiliar with Tudor, then here is his bio from Wikipedia,

"In 1980 he founded Tudor Investment Corporation which is today a leading asset management firm headquartered in Greenwich, Connecticut. The Tudor Group, which consists of Tudor Investment Corporation and its affiliates, is involved in active trading, investing and research in the global equity, venture capital, debt, currency and commodity markets. One of Jones' earliest and major successes was predicting Black Monday in 1987, tripling his money during the event due to large short positions. Jones uses a global macro strategy when trading in some of his funds. This strategy can be seen in the 1987 PBS film "TRADER: The Documentary". The film shows Mr. Jones as a young man predicting the 1987 crash. Jones' firm currently manages$17.7 billion (as of June 1, 2007). Their investment capabilities are broad and diverse, including global macro trading, fundamental equity investing in the U.S. and Europe, emerging markets, venture capital, commodities, event driven strategies and technical trading systems."

So, as you can see, PTJ is quite an accomplished gentleman, earning him the title of the macro trader. If you want to hear some insightful thoughts from Paul Tudor Jones himself, head over to our post on Hedge Fund manager interviews or our post on quotes from PTJ. We've also covered their 13F filing which details their entire portfolio. 2008 was a mixed year for them, depending on which funds you were invested in. Their Raptor global equities fund finished '08 -20%, their flagship Global BVI fund finished -4.9%, and their Tensor fund (quant) ended +35.4% as we noted in our year end hedge fund performance numbers.


Company bios taken from Google Finance,

TerreStar Corporation, "formerly Motient Corporation is in the integrated satellite wireless communications business through its ownership of TerreStar Networks Inc. (TerreStar Networks), its principal operating entity, and TerreStar Global Ltd. (TerreStar Global)."

BigString Corporation is "a technology company focused on providing online communications. The Company provides a technology that would allow the user of e-mail services to have control, security and privacy relating to the e-mail generated by the user."

FiberTower Corp is "a provider of facilities-based backhaul services to wireless carriers. The Company utilizes its wireless spectrum assets to provide backhaul services through a hybrid radio/fiber network architecture."

International Fight League, Inc. is "a sports entertainment company that uses its professional mixed martial arts (MMA) sports league, known as the International Fight League (IFL), as a platform to generate revenues from spectator attendance at live events, broadcast of television programming, sponsorships and licensing."

Progenics Pharmaceuticals, Inc. (Progenics) is "a biopharmaceutical company focusing on the development and commercialization of therapeutic products to treat the unmet medical needs of patients with debilitating conditions and life-threatening diseases."

ULURU Inc. is "a pharmaceutical company focused on advancing topical drug delivery and engaged in the development of wound care, plastic surgery, and topically applied therapeutics based primarily on the adaptation of existing therapeutic agents using its drug delivery platforms."

Enherent Corp. is "an information technology services firm with a primary focus of providing clients with consultative and technology staffing resources; and teams of technical consultants trained in the delivery of solutions related to systems integration, network and security, and application services."

KIT digital, Inc. (KIT Digital), "formerly ROO Group, Inc., through its subsidiaries, is engaged in the business of providing Internet software products and solutions that enable its customers to distribute video content through Internet Websites and mobile devices."

Hedge Fund Slogans & Ad Ideas: A Parody

With news that the SEC will lift the advertising ban on hedge funds in the near future, we thought it'd be fun to explore some mock slogans and ads.   Note: This is a parody.  If it isn't obvious below, this post is all in good fun.  


Hedge Fund Slogans & Ad Parodies For Major Firms


Viking Global:  TV Ad: A viking horn plays loudly as you see a viking ship sailing the ocean.  Slowly zooming in on the ship, it shows Andreas Halvorsen at the helm dressed in viking gear.  The camera pans to the other side of the ship revealing Johnny Drama from Entourage dressed as his Viking Quest character yelling "VICTORY!!!!"  Fade to black. "Viking Global"


Third Point:  TV Ad: A picture of a stoic Dan Loeb's face stares at you for 30 seconds straight. No text. No sound.  Fade to black.


Bridgewater Associates:  Video of Ray Dalio saying: "Give me your money or I will take it from you."  A black screen with the word: "Zen."  And then inspired by an old Dealbreaker post: The slogan "Be the hyena, attack the wildebeest" plays over audio repeatedly while a video of a hyena attack is played.


Appaloosa Management: Slogan: "We've got brass balls."  TV Ad: They hire Will Ferrell to play his Ricky Bobby NASCAR character from the movie Talladega Nights.  Ferrell appears on screen and says "Hi, I'm Ricky Bobby.  If you don't invest with Appaloosa, then f*ck you." 


Soros Fund: TV Ad: George Soros appears on screen and says "Why should you invest with Soros? Let me show you."  The audience then gets RickRoll'd as a music video from Rick Astley pops up out of nowhere.  The camera then pans back to Soros who is laughing like a maniac.  "Hahahah you can't even invest with us!!"


SAC Capital:  They anonymously buy ads that simply say: "Hey SEC: Suck it."


Oaktree Capital:  Howard Marks buys out all the ad inventory of a primetime broadcast to display a spot "Mr. Marks' Neighborhood" mirrored after the old children's show "Mr. Rogers Neighborhood."  Marks takes off his cardigan and shoes then proceeds to read his latest memo in its entirety, split up into 41 different 30-second spots.  


Pershing Square:  TV Ad: The words: "1 Fund. 1 Stock. Ride or Die" appear on screen.  Rapper DMX comes out of nowhere and starts yelling "RIDE. OR. DIE!  WHAT?!? C'MON!!!" repeatedly.  

2nd TV Ad: Bill Ackman grows a beard to look like the Dos Equis 'most interesting man in the world' and says, "I don't always invest in hedge funds, but when I do, I invest in Pershing Square." (via @largecaptrader1)


Icahn Partners: TV Ad: Carl Icahn appears and simply says, "I hate Bill Ackman." 


Tudor Investment Corp: Print Ad: The classic "losers average losers" PTJ picture from the 1980's with the caption, "Winners invest with Tudor.  Don't be a loser, chump."


Elliott Management:  Print Ad: A picture of the Argentinian ship they took over with the caption, "Somali pirates ain't got sh*t on us."


Maverick Capital:  TV Ad: They hire Tom Cruise to reprise his role of 'Maverick' and Val Kilmer to play 'Iceman' from the movie Top Gun.  Kilmer looks at the viewers and quotes his movie line, "You can be my wingman any time."  Cruise busts on screen and yells, "Bullsh*t!  You can be mine."  He then quotes another line, "This is what I call a target rich environment."  Iceman chomps his teeth while Cruise says, "Invest with Maverick."


Citadel: Print Ad: Picture of a big fort with the caption, "COME AT US, BRO!!!"


ESL Investments: *insert a Sears Ad*


Cerberus Capital: Image of a three-headed dog breathing fire with the caption, "Deal with it."  They sign licensing deals with Affliction and Ed Hardy for a new range of deep v-neck t-shirts with said logo.


Kase Capital: TV ad: Whitney Tilson buys an entire night's worth of infomercial slots and hires the ShamWow guy to enthusiastically promote his fund:  "Do YOU need a hedge fund?! Well do I have the fund for you. Wow!!!"   


Greenlight Capital:  Inspired by old Dealbreaker posts, Einhorn uses clips from the Green Lantern movie with his face superimposed over Ryan Reynolds' body.


Kynikos Associates: TV Ad: Jim Chanos runs a cryptic ad where the word "short seller" flashes on the screen.  Other phrases flash in and out rapidly like "Kynikos: greek for cynic" and "TRUST NO ONE."  Pictures of company logos like Enron appear and disappear like subliminal messages.


Hayman Capital: "Betting against adult diapers since 2010."


Baupost Group: "We don't even need your money."


Paulson & Co:  TV Ad for Paulson's gold fund: They hire Mike Myers to play his 'Goldmember' character from the Austin Powers movie.  He appears on the screen and just yells "I love goooooooold" nonstop.


Renaissance Technologies:  "You have no clue what we're doing."



Lastly, here's a slogan that's up for grabs.  All you gotta do is bring Jay-Z into the mix and you're set: "99 problems but beta ain't one."


Submit Your Hedge Fund Ad Slogans Below

Let us know your favorites and feel free to submit your hedge fund slogans in the comments below.  The cheesier and funnier, the better.  We'll post up the best submissions.

Tudor Investment Corp Opens Momentum Fund

Tudor Investment Corp, the global macro hedge fund firm ran by legendary trader Paul Tudor Jones has opened its Momentum Fund. The fund, ran by Steve Evans (who also runs their Tensor fund) will trade in all sorts of futures markets. Both the Tensor and now Momentum fund use computer models and Steve Evans has seemingly done well for himself. Tudor's futures fund returned 36% last year in a market covered in red and the Tensor fund has seen 15% returns each year since it began trading in 2005.

There has been some shuffling around at Tudor as they continue to go about business. They still of course have their main flagship BVI Global fund that finished 2008 -4.5% as noted in our 2008 hedge fund performance numbers. But, James Pallotta, who was in charge of their equity focused Raptor fund has left Tudor to start his own fund. Just a few weeks ago, we noted they were shuffling around their equities portfolio as they amended numerous filings.

For insightful thoughts from Paul Tudor Jones himself, head over to our post on Hedge Fund manager interviews or our post on quotes from PTJ.