Patrick McCormack's Top 10 Positions Returned 19% Since September

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Includes: AAPL, COH, DG, HLF, HOG, KMX, MJN, RL, SBUX, YUM
by: Insider Monkey

Patrick McCormack is one of the Tiger Cubs. He founded Tiger Consumer Management in 2006, one of the several funds that were seeded by legendary Julian Robertson. As its name implies, Tiger Consumer Management mainly invests in the consumer sector. The 13F portfolio of the New York based Tiger Consumer has a total value of approximately $1.4 billion. Since the end of September last year, the top 10 positions of the fund returned 19%, versus 16% for SPY in the same period. The calculation assumes that McCormack did not increase or reduce his stakes in these 10 positions since September.

Top 10 positions of Tiger Consumer Management as of September 30, 2011

Company Name

Ticker

Value (*1000)

Return since Sep

HERBALIFE LTD

HLF

51884

7.04%

DOLLAR GENERAL

DG

51363

9.72%

POLO RALPH LAUREN

RL

50694

12.50%

COACH INC

COH

50452

25.00%

APPLE INC

AAPL

50334

12.53%

HARLEY DAVIDSON

HOG

50165

22.45%

YUM BRANDS INC

YUM

49471

28.17%

STARBUCKS CORP

SBUX

49186

29.35%

MEAD JOHNSON

MJN

48803

6.68%

CARMAX INC

KMX

48704

38.45%

Click to enlarge

During the third quarter, Tiger Consumer boosted its position in Coach Inc by 37%. As of September 30, 2011, the fund had $50.5 million invested in COH. Coach is a marketer of fine accessories and gifts, including bags, accessories, business cases, jewelry, and fragrance for men and women. The company reported net income of $215 million for the 13 weeks ending October 1, 2011, up from $189 million for the same period a year earlier. At the end of the third quarter, there are 31 hedge funds with COH positions in their 13F portfolios. Besides Tiger Consumers, Ken Fisher's Fisher Asset Management also had $315 million invested in COH. The stock returned 25% so far since the end of September, beating the market by 9 percentage points.

Starbucks Corp and Yum Brands Inc also performed quite well since the end of the third quarter last year. SBUX returned 29.35% and YUM was up 28.17% in that period, both beating the 16.30% for SPY. As of September 30, 2011, Tiger Consumers invested about $49 million in both positions. Starbucks is a coffee retailer and Yum Brands is a quick service restaurant company. Both stocks are quite popular among hedge funds. There are 36 hedge funds with SBUX positions and 35 with YUM at the end of September. Besides Tiger Consumer, Louis Navellier's Navellier & Associates also invested in both positions. Navellier had $37 million invested in SBUX and another $39 million invested in YUM at the end of September last year.

Harley Davidson Inc and CarMax Inc also outperformed the market since the end of the third quarter. The market was up over 15% since the end of September and we believe the economy is very likely to continue growing in the near future, making the stocks in the consumer goods sector attractive to invest in. We recommend investors focus on the top stock picks of Tiger Consumer and consider adding a few of these consumer stocks to their portfolios.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.