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Almost everyone interested in investing knows big names such as Warren Buffett and John Paulson. These billionaires have been in the industry for decades and generated stunning historical returns. There are also some hedge fund managers who are still young, but their performances are on par with Buffett or Paulson. As a matter of fact, they sometimes outperform those traditionally well-known managers. For example, Chase Coleman’s Tiger Global Management generated double-digit return during the stock crash this August, while Paulson’s fund suffered a huge loss in that period.

Coleman is only 36 years old. The young man was seeded by Julian Robertson and is one of the most successful tiger cubs. Since he founded Tiger Global Management in 2001, the fund returned 21% annually and it mainly invests in technology companies. Our research showed that by focusing on the best stock picks of successful hedge fund managers like Coleman, investors are more likely to beat the market in the long term.

In this article, we are going to take a look at the major technology stocks in the latest 13F portfolio of Coleman’s fund. All companies have at least $2 billion market cap and are in Coleman’s fund as of September 30, 2011. The market data and sector classification is sourced from Finviz.

Company Name

Ticker

Value

Activity

YANDEX N V

YNDX

1106028

0%

APPLE INC

AAPL

646223

13%

BAIDU INC

BIDU

195196

83%

HOMEAWAY INC

AWAY

157741

New

SINA CORP

SINA

38311

New

GOOGLE INC

GOOG

33555

-26%

LINKEDIN CORP

LNKD

23424

0%

YOUKU COM INC

YOKU

14021

-41%

ADOBE SYSTEMS INC

ADBE

12085

New

The largest tech position held by Tiger Global Management at the end of September was Yandex NV (NASDAQ:YNDX). According to the latest 13F of the fund, it had more than $1 billion invested in this stock. Tiger Global did not purchase any additional shares or sell any stakes in this position during the third quarter. Since the end of September, YNDX returned 7.43%, versus 10.46% for SPY. The Russian internet services company has a market cap of $7.1B.

Over the third quarter, Coleman also largely increased his fund’s stakes in Baidu Inc (NASDAQ:BIDU). Tiger Global also doubled its stakes in this Chinese-language internet search provider. At the end of September, the fund had $195 million invested in BIDU. This stock gained 22.52% since the end of the third quarter, doubling the return of SPY. Ken Fisher is also bullish about BIDU. His Fisher Asset Management invested more than $400 million in the stock at the end of the third quarter.

During the third quarter, Tiger Global initiated brand new $158 million position in AWAY and $38.3 million position in SINA. Unluckily, AWAY lost 22.19% and SINA lost 7.72% so far in the fourth quarter. On the other hand, another new position in the fund, Adobe Systems Inc (NASDAQ:ADBE), returned 13.45% since the end of September, outperforming the market by 3 percentage points.

Other technology stocks that Coleman is also bullish about include Apple Inc (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), Linkedin Corp (NYSE:LNKD), and Youku.com Inc (NYSE:YOKU). Apple is the most popular stock among hedge funds (see the 10 most popular stocks) and outperformed the market in double digits this year. Chase Coleman is one of the expert investors in the technology sector. He made billions for his investors by investing early in Facebook. His bold bets in Apple and Yandex may prove to be winners in 2012 as well.

Disclosure: I am long SPY.

Source: 9 Tech Stock Picks Of Tiger Cub Chase Coleman