Chase Colman, the founder of Tiger Global Management, is one of the youngest faces in Wall Street. Coleman worked for Julian Robertson between 1997 and 2000. His hedge fund, Tiger Global, manages equity investments in U.S., as well as global markets, including China, India, Southeast Asia, Eastern Europe, and Latin America. Tiger Global also has offices in Beijing, China and Mumbai, India. Tiger Cup portfolio is estimated to yield an annualized return of 15.5% since 2000. Chase Colman not only invests in real estate, telecommunications, energy, media, and retail sectors, but also in fixed income markets. Here is a brief analysis of Colman's top 10 equity holdings:
Apple (AAPL): Apple is the favorite stock of large institutions, as well as private equity managers. Most hedge funds hedge themselves through Apple holdings. Apple has an enormous market cap of $311.26 billion. The company has a P/E ratio of 18.86, and a forward P/E ratio of 12.67. Apple had a tremendous annualized EPS growth of 57.78% over the past five years. Net profit margin of 21.81% is one of the best in the industry. Since December, Apple shares bounce between $320 and $360. The recent earnings report pleasantly surprised the analyst estimates with a large margin. If Apple continues surprise Wall Street as such, the shareholders can enjoy above-average returns.
Viacom (VIA-B): Viacom is one stock, hedge funds love to hold. Seth Clarman is extremely bullish on Viacom. Viacom operates as an entertainment company in the United States. Its business has two primary divisions, namely, media networks and filmed entertainment. With a market cap of $28.60 billion, the company has a trailing P/E ratio of 16.17, and a forward ratio of 12.01. Net profit margin is 13.78%, and dividend yield is 1.26%. Earnings per share is expected to increase by 14.28% in the next five years. Shares gained an extremely bullish momentum since September 2010. The stock is up by 50%, from $32 to $48. Wunderlich, Deutsche Bank, Barrington, and UBS have positive recommendations with target prices ranging between $52 and $59.
DirecTV (DTV): DirecTV is a digital entertainment service provider in United States and Latin America. The company provides direct-to-home digital television services, and also multi-channel video programming distribution services. The market cap of the company is $36.49 billion. DirecTV has a P/E ratio of 18.51, and a forward ratio of 11.52. The company enjoyed a fabulous annualized EPS growth of 62.58% in last 5 years. Net profit margin is 9.59%. Similar to Viacom, DirecTV shares are in bullish momentum. Wunderlich sets a target price of $60, implying 20% upside potential.
Liberty Global (LBTYA): Liberty Global offers video, voice, and broadband Internet services across Europe, Japan, and Chile. The company has a market cap of $10.86 billion. Forward P/E ratio is 22.51. Gross profit margin stands at 62.88%. Ytd performance of 27.5% shows Colman's talent in stock picking.
Liberty Capital Group (LCAPA): Liberty Capital Group is known for the live-action theatrical film production, home video distribution, live-action television production, as well as theatrical and non-theatrical animations. Liberty Capital also owns the Atlanta Braves Major League Baseball franchise. The company develops, and markets technology for locating wireless devices. Liberty Capital has a market cap of $6.37 billion. P/E ratio of 8.6 is one of the lowest in the Street. The company also enjoyed an annualized EPS growth of 10.16%. Along with Coleman's other multimedia companies, Liberty Capital is in an upward movement trend. Ytd return is 24.57%.
Mercodolibre (MELI): The company engages in online commerce and payments platforms in Latin America. Mercodolibre provides automated online commerce services, located at mercadolibre.com, which allow businesses and individuals to list items and conduct their sales. In that sense, it is a mixture of Amazon.com (AMZN) and Ebay (EBAY). The company was founded in 1999, and is headquartered in Buenos Aires, Argentina. Market cap is $3.97 billion, and dividend yield is 0.35%. While Meli is a pricey investment with a P/E ratio of 71.30, forward P/E ratio is 42.51. The company had a tremendous annualized EPS growth of 130.79% in the last 5 years. The net profit margin is 25.85%. Since March, stock is up by 50%.
Cablevision Systems Corporation (CVC): New York-based Cablevisions is known as a telecommunications, media, and entertainment company. Cablevision provides content for multiple media platforms, and has various entertainment brands. The market cap of the company is $10 billion, and dividend yield is 1.50%. While the company has a P/E ratio of 27.55, the forward P/E ratio declines to 13.72, implying an EPS growth estimate of 44%. Past annualized EPS growth rate is 37.37%. Coleman owns 2.68% of the company.
Priceline.com (PCLN): Connecticut-based Priceline is a famous online travel company operating in the United States, Europe and Asia. Priceline offers various travel services such as airline tickets, hotel rooms as well as car rentals. The company has a market cap of $25.83 billion. Although the current P/E ratio of 50.58 is pricey, forward P/E ratio is 22. Shareholders enjoyed an annualized EPS growth of 19.67%. Current net profit margin of 17.12% is one of the best in industry. The ytd performance is 36.23%.
Amazon.com (AMZN): Seattle-based Amazon.com, is one of the oldest online retailers in the business. It operates retail web sites, including amazon.com, amazon.co.uk and amazon.ca with customers located all around the world. Market cap stands at $80.65 billion. Amazon.com shareholders enjoyed an annualized EPS growth of 26.44%. However, the trailing P/E ratio of the company is 70.68, one of the highest in the industry. That is why it is one of the four stocks to avoid for now. Ytd return is 1.28%.
MasterCard (MA): The company was founded in 1996 and is centered at Purchase, New York. MasterCard is one of the largest incorporations involved in transaction processing, deposit access, electronic cash, and automated teller machine payment card programs. The company has a market cap of 33.02 billion. The P/E ratio stands at 19.01, and forward P/E ratio is 13.68. Net profit margin is 33.35%. EPS is expected to be around 15% for the next 5 years. Analysts are extremely bullish on MasterCard. Deutsche Bank reiterated buy rating with a target price of $300. Given the strong fundamentals, and analyst upgrades, it might be another profitable investment for Coleman.