Manish Chopra is the man behind Tiger Veda Management, the hedge fund he founded in 2006 after leaving the exclusive Tiger Management to manage his own fund. Chopra learned a lot from his mentor, the eminent Julian Robertson; specifically, he learned to make the sort of calculated moves that have continually resulted in “Tiger Cubs” outperforming the market (Check out the whole story here). That is, at least until recently.
Since the end of June, Chopra has been standing on the wrong side of the market volatility; his Tiger Veda lost -15% compared to just over -12% loss for the market. During the second quarter he sold out his stakes in National Fuel Gas Co. (NFG) and Brasil Telecom S.A. (BTM). These stocks lost 25% on average. His top positions were Loral Space and Communications (LORL) and Charter Communications (CHTR), but he also boosted his stakes in Cablevision Systems (CVC), SBA Communications (SBAC), and W.R. Grace & Co. (GRA) significantly. Here is his entire portfolio activity:
Company | Ticker | Value (x1,000) | Activity | Return Since June |
LORAL SPACE & COMM | LORL | 17902 | 59% | -22% |
CHARTER COMMUNICATIONS | CHTR | 13286 | 65% | -14% |
CABLEVISION SYSTEMS CORP | CVC | 13130 | 236% | -36% |
S B A COMMUNICAITONS CORP | SBAC | 11766 | 209% | -4% |
GRACE W R & CO DEL NEW | GRA | 11732 | 122% | -22% |
RENAISSANCERE HOLDINGS | (RNR) | 10064 | -13% | -8% |
APPLE INC | (AAPL) | 10050 | 167% | 12% |
MACQUARIE INFRASTRUCTURE | (MIC) | 9953 | 8% | -15% |
N I I HOLDINGS INC | (NIHD) | 9763 | 73% | -15% |
COCA COLA ENTERPRISES | (CCE) | 9177 | -20% | -13% |
GOOGLE INC | (GOOG) | 8001 | New | 4% |
GAFISA S A | (GFA) | 5704 | New | -7% |
ORIENTAL FINANCIAL GROUP | (OFG) | 5274 | 0% | -22% |
SCORPIO TANKERS INC | (STNG) | 4966 | 36% | -41% |
GRUPO AEROPORTUARIO | (PAC) | 4864 | 19% | -10% |
LIBERTY GLOBAL INC | (LBTYK) | 4458 | New | -18% |
SEMGROUP CORP | (SEMG) | 1595 | New | -13% |
IRIDIUM COMMUNICATIONS | (IRDM) | 1413 | New | -21% |
HARRY WINSTON DIAMOND | (HWD) | 499 | -85% | -18% |
BRASIL TELECOM S A | BTM | Sold Out | -30% | |
NATIONAL FUEL GAS CO N J | NFG | Sold Out | -20% |
Chopra’s greatest gain so far this quarter was through his position in Apple Inc (AAPL), which gained +12%. This was a lucky turn. Chopra had just increased his position in the popular stock by 167% last quarter, to make its his 7th largest holding. Apple is the most popular stock amongst hedge funds, but it is also one of the most profitable. Shares in Apple did take a small hit after Steve Jobs announced his resignation, but they have since rebounded, proving that Apple is a resilient stock and, as such, likely valued well.
Chopra also had modest gains through his Google Inc position, gaining +4% since the end of last quarter. Google is a new position for Chopra, and he isn’t alone. Of the hedge funds we track, the vast majority of the top 30 in bed with Google upped their positions or bought in big last quarter.
Unfortunately, of Chopra’s top 21 stocks, these were the only two to turn a profit. On the remaining 19, Chopra lost big. His biggest losses were from Scorpio Tankers Inc; Chopra lost -41% on his position there after having just increased it by 36% last quarter. Several other funds increased their positions in Scorpio Tankers last quarter, or bought significant stakes in the company, so hopefully a turnaround is in the near future.
Chopra also lost big on his Cablevision Systems Corp, losing -36%. Chopra has increased his position in the company by 236% last quarter. He wasn’t alone in his interest; John Bader of Halcyon Asset Management increased his stake in the company by 40% last quarter, bringing the value of his position to almost $35 million.
We like Chopra, but his recent performance is not encouraging, especially for an individual investor. Private investors have to contend with transaction costs and administration costs on top of any loss sustained, so if you had chosen to mirror Chopra’s top positions, your losses would have been even greater. Private investors are cautioned to look toward more consistent performers.
Disclosure: I am long SPY.
