TLDR
- Billionaire hedge fund manager Paul Tudor Jones sold all 175,212 Palantir shares in Q2 2025
- Tudor Investment Corporation bought 905,700 Rigetti Computing shares in the same period
- Palantir’s valuation multiples exceed software industry norms, prompting the exit
- Rigetti is developing quantum systems Ankaa-3 and Cepheus-1 as potential catalysts
- Jones uses hedged options strategy with both calls and puts on Rigetti position
Paul Tudor Jones made a major portfolio shift in the second quarter of 2025. His firm Tudor Investment Corporation sold its complete Palantir Technologies position while establishing a new stake in quantum computing company Rigetti Computing.
The legendary investor sold 175,212 Palantir shares during Q2. Jones simultaneously purchased 905,700 shares of Rigetti Computing according to the firm’s 13F filing.
Jones earned his reputation by correctly predicting the 1987 Black Monday market crash. Today his firm manages billions across multiple asset classes including equities and venture capital.
Why Jones Exited Palantir
Palantir has evolved from a government contractor into a major AI platform provider. The company serves clients across defense, healthcare, logistics, and financial services sectors.
The stock experienced strong gains over the past year. Its Artificial Intelligence Platform drove increased enterprise adoption and consistent profitability.
However, Palantir’s current valuation presents challenges. The company trades at price-to-sales and price-to-earnings ratios well above typical software-as-a-service companies.
Jones specializes in identifying market turning points before they happen. Exiting a premium-valued position aligns with his macro-focused investment approach.
The move suggests Jones believes Palantir’s valuation expansion may have run its course. He appears to be rotating capital toward opportunities with more upside potential.
The Rigetti Computing Investment
Rigetti Computing operates in the quantum computing space. The company builds systems using qubits rather than traditional computing bits.
Industry analysts project the quantum AI market could grow to $10 trillion over time. This forecast attracts investors seeking exposure to emerging technologies.
Rigetti currently generates minimal revenue and operates at a loss. The company has not yet achieved commercial scale or demonstrated a clear profitability path.
Jones may view this as a strategic trade rather than a long-term holding. Tudor Investment’s position includes both call and put options on Rigetti shares.
This hedged approach limits downside risk while maintaining upside exposure. The strategy reflects Jones’ reputation for sophisticated risk management.
Upcoming Catalysts for Rigetti
Rigetti is working on two quantum computing systems called Ankaa-3 and Cepheus-1. Progress announcements on these projects could drive investor interest.
The company competes with other quantum computing firms including IonQ, D-Wave Quantum, and Quantinuum. Any indication Rigetti is closing the technology gap could boost the stock.
Rigetti shares trade at $47.92 with a market capitalization of $16 billion as of October 16, 2025. The stock saw heavy trading volume following news of Jones’ investment.
Jones may be positioning ahead of potential institutional capital flows into quantum computing. His track record includes anticipating major market trends before broader recognition.
Palantir remains a profitable company with strong government and commercial ties. Rigetti faces years of development before reaching commercial viability.
The transaction shows how billionaire investors rebalance portfolios based on valuation and opportunity. Jones locked in Palantir gains while taking a calculated bet on quantum computing’s future.
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