Tracking Chase Coleman's Tiger Global Portfolio - Q2 2018 Update

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Includes: ADBE, ADSK, AMZN, APO, AVLR, BABA, BCS, BEDU, BILI, BKNG, CDAY, CLDR, COUP, CRM, DBX, DESP, DOCU, DPZ, EDU, FB, FCAU, FEYE, FIT, FLT, FPI, GDS, HUYA, IQ, JCP, JD, LC, MA, MDB, MELI, MSFT, NETS, NEW, NFLX, NOW, OKTA, ONE, PSTG, PVTL, QSR, RDFN, REDU, RUN, SE, SFTBY, SHOP, SOGO, SPOT, STG, SWCH, TAL, TDG, TEAM, TWTR, UXIN, V, ZTO
by: John Vincent

Summary

Chase Coleman’s 13F portfolio value increased from $15.04B to $19.22B this quarter.

Tiger Global increased MercadoLibre while reducing Redfin Corp. during the quarter.

The largest three positions are Spotify, Amazon.com, and JD.com, and they add up to ~30% of the portfolio.

This article is part of a series that provides an ongoing analysis of the changes made to Chase Coleman’s Tiger Global Management 13F stock portfolio on a quarterly basis. It is based on Tiger Global’s regulatory 13F Form filed on 08/14/2018. Please visit our Tracking Chase Coleman’s Tiger Global Portfolio series to get an idea of their investment philosophy and our last update for the fund’s moves in Q1 2018.

Chase Coleman’s 13F portfolio value increased ~28% this quarter from $15.04B to $19.21B. Recent 13F reports have shown around 50 positions. 28 of those are significantly large (more than 0.5% of the portfolio each) and they are the focus of this article. The largest five stakes are Spotify (SPOT), Amazon.com (AMZN), JD.com (JD), Booking Holdings (BKNG), and Microsoft (NASDAQ:MSFT). Together, they add up to ~44% of the entire 13F portfolio.

Prior to founding Tiger Global Management in 2001, Chase Coleman was the technology analyst at Tiger Management from 1997 to 2000, making him a bona fide “tiger cub”. To know more about Julian Robertson and his legendary Tiger Management, check out Julian Robertson: A Tiger in the Land of Bulls and Bears.

New Stakes:

Spotify and Uxin Limited ADR (UXIN): These two positions are venture capital investments. They are new in the 13F report as they became 13F securities following their respective IPOs. Tiger Global controls ~7.2% of Spotify and ~8.1% of Uxin. Currently, the Spotify stake is their largest 13F position at 11.21% of the portfolio. The Uxin stake is at 1.17% of the portfolio.

Stake Disposals:

None.

Stake Decreases:

JD.com & Calls: JD was a ~5M share position first purchased in Q4 2014 at prices between $23.50 and $27. The next two quarters saw the position built up to a huge ~70M share position (~25% of the 13F portfolio at the time) at prices between $24 and $38. Since then, the stake has wavered. Recent activity follow: Q3 2017 saw a ~12% increase at prices between $38 and $48 while the following quarter there was a ~17% reduction at prices between $36.75 and $43. The stock is currently at $29.43. It is their third-largest 13F position at ~8% of the portfolio (~41M shares). There was a marginal increase last quarter and minor trimming this quarter. For investors attempting to follow Tiger Global, JD is a good option to consider for further research.

Microsoft Corporation: MSFT is a large (top five) ~7% portfolio stake established in Q4 2016 at prices between $57 and $63 and increased by ~400% in Q2 2017 at prices between $65 and $72. The stock is now at ~$112. Q4 2017 saw a ~9% trimming while last quarter there was a ~38% stake increase at prices between $85 and $97. There was marginal trimming this quarter.

TransDigm Group (TDG): TDG is a 4.37% of the portfolio position. It was first purchased in Q4 2016 at prices between $245 and $289. H1 2017 saw the position built up to a large ~9% portfolio stake (4M shares) at prices between $210 and $272. There was a ~20% selling in Q3 2017 at prices between $264 and $288 and that was followed with a ~40% reduction next quarter at prices between $256 and $285. The pattern reversed last quarter: ~44% increase at prices between $270 and $317. The stock currently trades at ~$352. This quarter saw a ~12% trimming.

Note: Tiger Global has a 4.6% ownership interest in TransDigm Group. TDG has seen a previous round-trip in the portfolio: a long-term position significantly increased in H2 2013 was disposed in Q1 2016 realizing long-term gains.

Redfin Corp. (RDFN): RDFN stake came about as a result of the online real-estate firm’s IPO last August. Tiger Global’s stake in the business goes back to 2013. At the time, the funding round they participated in occurred at a valuation of ~$500M compared to the current market valuation of ~$1.8B. The stock started trading at ~$20 and is currently at $19.81. The position was sold down by ~70% this quarter at prices between $21 and $24.50. Tiger Global is harvesting gains.

Stake Increases:

Facebook Inc. (FB): The current ~6% FB stake was established in Q4 2016 at prices between $115 and $132. Q3 2017 saw a ~250% stake increase at prices between $148 and $174 and that was followed with a one-third increase the following quarter at prices between $168 and $183. There was another ~135% increase last quarter at prices between $152 and $193. The stock currently goes for $171. This quarter saw a minor ~5% increase.

Note: Facebook has seen a previous roundtrip in the portfolio. A pre-IPO investment of ~54M shares was sold out by Q4 2012. The trade generated over $1B in profits.

Apollo Global Management (APO): APO is a large 5.71% portfolio position first purchased in Q1 2017 at prices between $19.50 and $24.50 and increased by ~40% the following quarter at prices between $24 and $28.50. Last four quarters have also seen minor increases. The stock is now at $34.72.

Note: Tiger Global has a ~18% ownership stake in Apollo Global Management.

Alibaba Group Holdings (BABA): BABA is a fairly large 4.29% portfolio stake established in Q3 2016 at prices between $78.50 and $109 and the stock is now at ~$170. There was a ~16% selling in Q4 2017 at prices between $169 and $191, while this quarter there was a similar increase at prices between $168 and $211.

MercadoLibre (MELI) and Twitter Inc. (TWTR): These two positions were established last quarter and increased this quarter. MELI is a 2.31% portfolio stake established at prices between $320 and $414 and increased by ~85% this quarter at prices between $285 and $356. The stock is currently at ~$342. TWTR is a 2.66% portfolio position purchased last quarter at prices between $22 and $36.50 and increased by ~24% this quarter at prices between $27.50 and $47. It is now at $34.84.

Salesforce.com (CRM): CRM is a 1.67% position purchased in Q4 2017 at prices between $93 and $109 and increased by just over 200% last quarter at prices between $104 and $128. It now goes for $153. There was a ~4% increase this quarter.

Autodesk Inc. (ADSK): ADSK is a 1.58% portfolio stake purchased in Q3 2017 at prices between $99 and $117 and increased by ~75% the following quarter at prices between $104 and $130. The stock currently trades at ~$154. There were minor increases in the last two quarters.

ServiceNow Inc. (NOW), Sunrun Inc. (RUN) and Sea Limited (SE): These are small positions (less than ~1.5% of the portfolio each) that saw increases this quarter.

Note 1: Regulatory filings since the quarter ended show them owning 14.88M shares of Sunrun. This is compared to 13.9M shares in the 13F report. The increase happened at ~$13 per share cost-basis. They control ~13.5% of the business. The stock is now at $12.78.

Note 2: Regulatory filings also show them owning 11.16M shares (6.1% of business) of Sea Limited. This is compared to 8.15M shares in the 13F report.

Kept Steady:

Amazon.com Inc.: AMZN is currently the second-largest 13F stake at ~11% of the portfolio. The position was established in Q2 and Q3 2015 at prices between $370 and $540. Q1 2016 had seen a two-thirds reduction at prices between $482 and $676. The following quarter saw a ~40% increase at prices between $586 and $728 and the stock is now at $2,040. Q3 2017 had seen a ~24% increase at prices between $945 and $1,053 while the following quarter saw a similar reduction at prices between $957 and $1,196. There was a ~7% increase last quarter.

Note: AMZN has seen a previous round-trip in the portfolio. A 1M share stake purchased in 2010 in the low-$100s price range was disposed of in Q1 2014 in the high-$300s realizing huge gains.

Booking Holdings & Calls previously Priceline: BKNG is a large (top five) ~7% of the portfolio position. The stake was purchased in Q4 2015 at prices between $1,237 and $1,465. Q3 2016 saw a one-third increase at prices between $1,248 and $1,473 and that was followed with another similar increase the following quarter at prices between $1,424 and $1,578. The stock is now at $1,925. There was a ~15% trimming in Q1 2017 and that was followed with a ~27% selling in Q4 2017 at prices between $1,646 and $1,943. Last quarter saw another ~18% selling at prices between $1,750 and $2,206.

Note: Booking Holdings has seen a previous roundtrip in the portfolio. A fairly large position first purchased in 2007 was disposed in 2015 realizing huge profits.

Netflix Inc. (NFLX): NFLX is a frequently traded stock in Tiger Global’s portfolio. It has seen multiple roundtrips since 2011. The bulk of the current 4.24% position was purchased in Q3 2017 at prices between $146 and $189. There was ~43% reduction next quarter at prices between $177 and $203 while last quarter saw a ~23% increase at prices between $200 and $330. The stock currently trades at $364.

Despegar.com (DESP): DESP is a 3.30% of the portfolio position. It came about as a result of the Argentine airline booking business’s IPO in September 2017. Tiger Global had a majority ownership interest in the business prior to the IPO. The stock started trading at ~$32 and currently goes for $16.80.

Note: Tiger Global’s ownership stake in the business is ~44%.

Domino’s Pizza (DPZ): DPZ is a ~3% portfolio stake established in Q4 2016 with the bulk purchased in the following quarter at prices between $151 and $172. Q2 2017 saw a ~30% selling at prices between $174 and $219. The stock is now at ~$297. Q3 2017 saw a ~16% increase while the following quarter there was an ~11% trimming.

Note: Tiger Global has a 4.7% ownership stake in Domino’s Pizza.

Fiat Chrysler (FCAU): FCAU is a 2.56% of the portfolio position purchased in Q4 2016 at prices between $6 and $9. There was a one-third reduction in Q1 2017 at prices between $9.50 and $11.50 and that was followed with a ~40% selling next quarter at prices between $9.70 and $11.65. Q4 2017 saw an ~18% stake increase at prices between $18 and $25. The stock is now at $17.27.

TAL Education (TAL) and New Oriental Education (EDU): These two positions were established in Q4 2016 and increased substantially since. The 1.93% TAL stake was purchased at prices between $11.25 and $13.75 and increased by ~40% the following quarter at prices between $11.50 and $18. The stock is now at $29.26. EDU is a 1.41% portfolio position purchased at prices between $42 and $52 and increased by ~55% the following quarter at prices between $42 and $60. Q4 2017 also saw a ~28% increase at prices between $81.50 and $94. The stock is now at $75.53.

Note: TAL Education has seen a previous roundtrip in the portfolio. Tiger Global had a majority ownership stake in TAL Education prior to its IPO. The position was disposed by Q1 2014.

FleetCor Technologies (FLT): FLT is a 1.23% of the portfolio stake first purchased in Q4 2012 at prices between $45 and $53. The position has wavered. Recent activity follow: There was an almost two-thirds increase in Q2 2017 at prices between $131 and $151 and that was followed with a ~23% increase the following quarter at prices between $139 and $155. Q4 2017 saw a ~50% reduction at prices between $155 and $193. The stock is now at ~$215.

Mastercard Inc. (MA), Restaurant Brands International (QSR) and Visa Inc. (V): These very small positions (less than ~0.60% of the portfolio each) were kept steady this quarter.

The 13F portfolio also include the following minutely small (less than 0.5% of the portfolio each) positions: Adobe Systems (ADBE), Atlassian (TEAM), Avalara (AVLR), Barclays Plc (BCS), Bilibili Inc. (BILI), Bright Scholar Education (BEDU), Ceridian HCM (CDAY), Cloudera Inc. (CLDR), Coupa Software (COUP), DocuSign Inc. (DOCU), Dropbox (DBX), Farmland Partners (FPI), FireEye Inc. (FEYE), Fitbit Inc. (FIT), GDS Holdings (GDS), Huya Broadcasting (HUYA), iQIYI Inc. (IQ), LendingClub Corp (LC), MongoDB Inc. (MDB), Netshoes (Cayman) (NETS), Okta Inc. (OKTA), OneSmart International (ONE), J.C. Penney (JCP), Pivotal Software (PVTL), Pure Storage (PSTG), Puxin Ltd. (NEW), RISE Education Cayman (REDU), Shopify Inc. (SHOP), Sogou Inc. (SOGO), Sunlands Online (STG), Switch Inc. (SWCH), and ZTO Express Cayman (ZTO).

Note: In mid-July, it was reported that Tiger Global has taken a ~$1B stake in SoftBank (OTCPK:SFTBY). Their thesis is undervaluation and chance for the gap to close based on telecom spinoff and potential Alibaba stake tax-deferred spinoff. They believe NAV is $190B which implies the stock has to double for NAV to reach current price (~$40 per share at the time). The stock currently trades at $45.53.

Below is a spreadsheet that shows the changes to Chase Coleman's Tiger Global Holdings 13F portfolio holdings as of Q2 2018:


Chase Coleman - Tiger Global - Q2 2018 13F Report

Disclosure: I am/we are long BABA, DESP, JD, SFTBY.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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