Many hedge funds suffered from the stock crash this summer. John Paulson, Bill Ackman, and Lee Ainslie are among these hedge fund managers. But Chase Coleman’s Tiger Global Management was up about 30% in the same period. The 36-year old young man was seeded by the legendary investor Julian Robertson and is one of the most successful tiger cubs. His Tiger Global Management had an average return of around 21% annually since its inception in 2001.
Coleman reduced his portfolio from $6.1 billion at the end of June to $5.1 billion at the end of September. The fund also reduced its number of holdings. Tiger Global reported to have 44 positions at the end of June. Now it has 42 positions. Coleman sold out some positions in the third quarter. For example, he sold out Netflix Inc (NFLX), a company providing internet subscription service streaming television shows and movies. Tiger Global Management had $271 million invested in NFLX at the end of June. It seems that Coleman made the right decision to sell all his NFLX shares as the stock lost 28.33% since the end of September. In addition to NFLX, Coleman also sold out Directv (DTV), Transdigm Group Inc (TDG), Discovery Commuications Inc (DISCK), and Xerox Corp (XRX).
Here are Tiger Global Management’s top 25 positions at the end of September:
CompanyName | Ticker | Value | Activity |
YANDEX N V | 1106028 | 0% | |
APPLE INC | 646223 | 13% | |
LIBERTY GLOBAL INC | 329774 | 30% | |
VIACOM INC NEW | [[VIA-B]] | 318392 | 16% |
AMAZON COM INC | 299987 | 6% | |
MASTERCARD INC | 244586 | 29% | |
VISA INC | 231590 | 42% | |
APPLE INC Calls | 228792 | -10% | |
PRICELINE COM INC | 205913 | 42% | |
BAIDU INC | 195196 | 83% | |
MAKEMYTRIP LIMITED | 158642 | 16% | |
HOMEAWAY INC | 157741 | New | |
LIBERTY GLOBAL INC | 137056 | 28% | |
LIVE NATION ENTERTAINMENT | 125672 | 31% | |
CABLEVISION SYSTEMS CORP | 107802 | 17% | |
RENAISSANCERE HOLDINGS | 62197 | -22% | |
GENPACT LTD | 60421 | 0% | |
COCA COLA ENTERPRISES | 47421 | 0% | |
SECTOR SPDR TRUST | 46808 | New | |
IAC INTERACTIVECORP | 46772 | 25% | |
SINA CORP | 38311 | New | |
GOOGLE INC | 33555 | -26% | |
SONY CORP | 33250 | New | |
POLYPORE INTERNATIONAL | 28260 | New | |
OPENTABLE INC | 28121 | New |
Over the third quarter, Coleman initiated a new stake in Sina Corp (SINA). Tiger Global Management did not disclose to own any shares in SINA at the end of June and it reported to hold $38.3 million worth of the shares of the online media company. SINA returned 8.87% since the end of September. Coleman also opened new positions in Homeaway Inc (AWAY), Polypore International Inc (PPO), OpenTable Inc (OPEN), and Northern Oil & Gas Inc (NOG).
Coleman increased his stake in Apple Inc (AAPL). His fund increased the position in AAPL shares by 13% to $646 million and reduced the position in AAPL calls by 10% to $229 million. AAPL returned 0.90% since the end of the third quarter. Apple is the most popular stock among hedge funds at the end of September (see the 10 most popular stocks). Stephen Mandel, D. E. Shaw, Jim Simons and many other famous hedge fund managers were bullish about AAPL.
Coleman was also bullish about Mastercard Inc (MA). Tiger Global Management increased its position in MA by 29% to $245 million. MA returned 13.88% since the end of September, beating the market by about 4 percentage points. In addition to AAPL and MA, Coleman also increased his position in Visa Inc (V), Priceline.com (PCLN), and Baidu Inc (BIDU). These three stocks had a weighted average return of 18.8% since the end of the third quarter, almost doubling the return of SPY. Coleman also boosted its stakes in Viacom (VIA.B), Liberty Global (LBTYA), Makemytrip (MMYT), Live Nation Entertainment (LYV), and Cablevision (CVC).
We like Coleman. He has a golden touch. He is also very successful in his private investments. He is one of the early investors in Facebook and made billions from that investment for his investors. We believe ordinary investors should focus on his picks if they are willing to take the risk to invest in internet and entertainment stocks.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
