Tudor Investments Buys Two ETFs, Dumps Three Others

Tudor Investment Corp., Paul Tudor Jones’s $13 billion hedge fund, purchased stakes in two major exchange traded funds during the third quarter a regulatory filing  shows. The hedge fund also liquidated stakes in a pair of sector ETFs.

Tudor Investment significantly increased its stake in the Consumer Discretionary Select Sector SPDR (NYSEArca: XLY) to 4.1 million shares from 500,000 shares as of the end of the third quarter. XLY, the largest discretionary ETF, is the best performer of the nine sector SPDR ETFs this year with a gain of 37.7%, just ahead of the Health Care Select Sector SPDR (NYSEArca: XLV). [These Charts Illustrate Sector ETF Strength]

Tudor’s 4.1 million shares of XLY represent a scant percentage of the ETF’s 114 million shares outstanding.  Tudor also purchased 2.8 million shares of the iShares MSCI Emerging Markets ETF (NYSEArca: EEM), the second-largest emerging markets ETF by assets, during the third quarter.

The hedge fund liquidated stakes in the Energy Select Sector SPDR (NYSEArca: XLE),  the Financial Select Sector SPDR (NYSEArca: XLF) and the Industrial Select Sector SPDR (NYSEArca: XLI) during the third quarter. Those ETFs are up 23.8%, 24.8% and 33.4%, respectively, year-to-date.

Tudor Investment also owns a stake in the iShares Russell 2000 ETF (NYSEArca: IWM), the largest small-cap ETF, and options contracts on the SPDR S&P 500 (NYSEArca: SPY), the world’s largest ETF.

Data indicate Tudor Investment also liquidated a small stake in WisdomTree (NasdaqGM: WETF), the fifth-largest U.S. ETF issuer, during the third quarter.

ETF Trends editorial team contributed to this post. Tom Lydon’s clients own shares of EEM, IWM and SPY.

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