Monday after the market close, Stephen Mandel's hedge fund firm Lone Pine Capital filed a 13G on Estee Lauder (EL). This filing discloses activity as of June 17th, 2010 and reveals that Lone Pine has a 5.0% ownership stake in EL with 6,105,520 shares. This is a sizable increase in the hedge fund's position from when we last looked at Lone Pine's portfolio. Back on March 31st, Mandel's hedge fund owned 3,498,677 shares. Over the course of the past three months, Lone Pine has added 2,606,843 more shares (a 74.5% increase in its position size). In terms of other recent portfolio activity from Mandel, we noted he started a new position in Longtop Financial Technologies (LFT) a few months ago as well.
The interesting thing to note about Lone Pine's Estee Lauder position is that it has been gradually building it up over time. Looking from the fourth quarter in 2009 to the first quarter of 2010, Lone Pine had previously boosted its position by 14%. And before that (from the third quarter of '09 to the fourth quarter of '09) it had tripled its stake. And now, with this most recent increase, it's obvious Lone Pine has conviction in this pick. This stock becomes all the more interesting when you consider some other hedge funds are bullish on shares of EL as well.
As we've covered previously, David Stemerman's hedge fund Conatus Capital owns Estee Lauder as one of its top five US equity longs. Given his concurrent investment, it should come as no surprise that before founding Conatus, Stemerman previously worked at Lone Pine. So, he has carried conviction in this stock over to his new firm which launched last year with $2.3 billion. Consumer companies are essentially Lone Pine's specialty and Estee Lauder is the perfect example of this mold. Given that Lone Pine has continued to ramp up its stake, it will be intriguing to see whether or not Conatus has done the same.
Last year, Lone Pine's main fund (Lone Cypress) was up 17.7% as detailed our hedge fund performance numbers summary. Its Lone Kauri Fund was up 12.1%, its Lone Cascade Fund was up 44.4%, and its Lone Dragon Pine Fund was up 72.9%. For other investment ideas from Mandel's hedge fund, we previously saw that they are bullish on education plays as well.
Taken from Google Finance
Estee Lauder is "a manufacturer and marketer of skin care, makeup, fragrance and hair care products. Its products are sold in over 140 countries and territories under the brand names, which include Estee Lauder, Aramis, Clinique, Origins, MzAzC, Bobbi Brown, La Mer and Aveda."
Head to Lone Pine Capital's portfolio to see what else Stephen Mandel has invested in.