Tracking Chase Coleman's Tiger Global Portfolio - Q1 2019 Update

|
Includes: ADBE, ADSK, AMZN, APO, AVLR, BABA, BCS, BILI, BKNG, CDAY, CLDR, COUP, CRM, CVNA, DBX, DESP, DOCU, DPZ, EB, EDU, EGHT, ESTC, FB, FCAU, FEYE, FIT, FLT, FPI, FTCH, HUYA, IQ, JCP, JD, LC, MA, MDB, MELI, MSFT, NETS, NEW, NFLX, NOW, OKTA, ONE, PDD, PSTG, PVTL, QSR, RDFN, REDU, RNG, RUN, SE, SFTBY, SHOP, SMAR, SOGO, SPOT, STG, STNE, SVMK, SWCH, SWI, TAL, TDG, TEAM, TENB, TME, TWLO, UXIN, V, ZEN, ZTO
by: John Vincent
Summary

Chase Coleman’s 13F portfolio value increased from $15.02B to $18.11B this quarter.

Tiger Global increased Facebook and Netflix while reducing Spotify and Booking Holdings during the quarter.

The largest three positions are JD.com, Microsoft Corporation, and Facebook, and they add up to ~26% 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 05/15/2019. 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 Q4 2018.

Chase Coleman's 13F portfolio value increased ~21% this quarter from $15.02B to $18.11B. Recent 13F reports have shown around 50 positions. 34 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 JD.com (NASDAQ:JD), Microsoft Corporation (NASDAQ:MSFT), Facebook (NASDAQ:FB), Fiat Chrysler (NYSE:FCAU), and Amazon.com (NASDAQ:AMZN). Together, they add up to ~41% 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:

RingCentral Inc. (RNG), Twilio Inc. (TWLO), Carvana Inc. (CVNA), and 8X8 Inc. (EGHT): These are very small (less than ~1% of the portfolio each) new positions established during the quarter. RNG is a 0.81% of the portfolio position purchased at prices between $78.50 and $112, and the stock currently trades well above that range at ~$122. The 0.75% TWLO stake was established at prices between $81 and $136, and it is now above that range at $144. CVNA is a 0.66% portfolio position purchased at prices between $30 and $60, and the stock is now at $63.20. The 0.53% EGHT stake was established at prices between $17.50 and $21, and it currently trades at $24.18.

Note: Regulatory filings since the quarter ended show them owning ~2.7M shares of Carvana Inc. This is compared to 2.05M shares in the 13F report.

Stake Disposals:

Autodesk Inc. (ADSK): ADSK was a 0.75% 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 ~$165. The position was sold down by almost two-thirds last quarter at prices between $118 and $155, and the disposal this quarter was at prices between $122 and $164.

Coupa Software (COUP): The very small 0.53% position in COUP was disposed during the quarter.

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. The stock is now at $26.80. Last two quarters had seen a ~42% increase at prices between $19.25 and $39.50. It is their largest 13F position at 9.63% of the portfolio (~58M shares). For investors attempting to follow Tiger Global, JD is a good option to consider for further research. This quarter saw marginal trimming.

Amazon.com Inc.: AMZN is currently a top five 13F stake at 6.92% of the portfolio. The position was established in Q2 & 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. There was a ~38% selling last quarter at prices between $1,344 and $2,013, and that was followed with a ~5% trimming this quarter. The stock is now at $1,804.

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.

Spotify Technology (SPOT): Spotify is a venture capital investment that became part of their 13F portfolio following its IPO in Q2 2018. Tiger Global controls ~4.5% of Spotify. Currently, the Spotify stake is at 6.29% of the portfolio. SPOT started trading at ~$150 and currently goes for ~$140. This quarter saw a ~36% selling at prices between $109 and $151.

Booking Holdings (BKNG) & Calls previously Priceline: BKNG is a 2.73% 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. 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. Q1 2018 saw another ~18% selling at prices between $1,750 and $2,206, and that was followed with a one-third reduction last quarter at prices between $1,617 and $1,998. There was another ~37% selling this quarter at prices between $1,650 and $1,936. The stock is now at $1,778.

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

FleetCor Technologies (FLT): FLT is a 2.35% 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, while, last quarter, there was a ~60% increase at prices between $176 and $227. The stock is now at ~$259. There was a ~4% trimming this quarter.

TAL Education (TAL): The 1.88% TAL stake was purchased in Q4 2016 at prices between $11.25 and $13.75 and increased by ~40% the following quarter at prices between $11.50 and $18. Q3 2018 saw a ~16% increase while last quarter there was a similar reduction. The stock is now at $35.26. This quarter saw a ~2% trimming.

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

Domino's Pizza (DPZ): DPZ is a 1.75% 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. This quarter saw another ~35% selling at prices between $240 and $295. The stock currently trades at $287.

Eventbrite Inc. (EB) and SVMK Inc. (SVMK): EB and SVMK were Tiger Global's IPO winners in Q3 2018. Both were private equity investments that became part of the 13F portfolio following their IPOs in September. Eventbrite IPO was priced at $23 and started trading at $36. The stock is currently at $16.76. There was minor trimming this quarter. The SVMK IPO was priced at $12 and started trading at $18.75. It currently goes for $16.96. The position was reduced by ~40% during the quarter at prices between $11.75 and $18.30. The EB and SVMK stakes are currently at 1.49% and 1.88% of the portfolio, respectively.

Note: Tiger Global controls ~19% of Eventbrite and ~14% of SVMK.

Zendesk Inc. (ZEN): ZEN is a 1.27% position established in Q3 2018 at prices between $54.50 and $72 and increased by ~15% last quarter. There was an about-turn this quarter: ~25% selling at prices between $55.50 and $86. The stock is now at $89.37.

Despegar.com (DESP): DESP is a ~1% 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 $12.49. There was a ~20% reduction in Q3 2018 at prices between $15 and $22, and that was followed with a ~50% selling last quarter at prices between $11.50 and $17. This quarter saw marginal trimming.

Note: Tiger Global's ownership stake in the business is ~18%.

Adobe Systems (ADBE): The bulk of the ~1% ADBE stake was purchased in H2 2018 at prices between $205 and $275. The stock currently trades at $278. This quarter saw a ~30% reduction at prices between $216 and $268.

Restaurant Brands International (QSR), ServiceNow Inc. (NOW), and Uxin Limited ADR (UXIN): These very small positions (less than ~1% of the portfolio each) were reduced this quarter.

Stake Increases:

Microsoft Corporation: MSFT is a large (top three) ~9% 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 ~$131. Q4 2017 saw a ~9% trimming while next quarter there was a ~38% stake increase at prices between $85 and $97. Last two quarters have seen marginal increases.

Facebook Inc.: The large (top three) ~8% 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 in Q1 2018 at prices between $152 and $193. The stock currently goes for $173. Q3 2018 saw a ~25% selling at prices between $160 and $218 while, last quarter, there was a ~16% increase at prices between $124 and $162. There was another two-thirds increase this quarter at prices between $132 and $173.

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

Fiat Chrysler: FCAU is now a large (top five) 7.24% of the portfolio position. It was first 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 a ~18% stake increase at prices between $18 and $25, and that was followed with a ~140% increase in Q3 2018 at prices between $15.50 and $20.50. There was another ~30% increase last quarter at prices between $14 and $18, and that was followed with a ~9% stake increase this quarter. The stock is now at $13.20. For investors attempting to follow, FCAU is a good option to consider for further research.

Note: Tiger Global's ownership stake is at ~6%.

Alibaba Group Holdings (BABA): BABA is a 4.36% portfolio stake established in Q3 2016 at prices between $78.50 and $109. There was a ~16% selling in Q4 2017 at prices between $169 and $191, while Q2 2018 there was a similar increase at prices between $168 and $211. Q3 2018 saw a ~45% increase at prices between $156 and $198, while last quarter saw a ~36% selling at prices between $131 and $164. The stock currently trades at $154. There was a ~5% stake increase this quarter.

Netflix Inc. (NFLX): NFLX is a frequently traded stock in Tiger Global's portfolio. It has seen multiple round-trips since 2011. The bulk of the current 4.15% 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 Q1 2018 saw a ~23% increase at prices between $200 and $330. There was a one-third selling last quarter at prices between $234 and $381, and that was followed with a ~43% increase this quarter at prices between $268 and $378. The stock currently trades at $361.

Sunrun Inc. (RUN) and Sea Limited (SE): These are small positions (less than ~2% of the portfolio each) that saw increases this quarter.

Note 1: Regulatory filings since the quarter ended show them owning 18.83M shares of Sunrun. This is compared to 18.58M shares in the 13F Report. The increase happened at ~$15.70. Their ownership stake is at ~17%. The stock is now at $16.34.

Note 2: Tiger Global's ownership stake in Sea Limited is ~8% of business.

Kept Steady:

Apollo Global Management (APO): APO is a large ~6% 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 quarter also saw a ~9% stake increase. The stock is now at ~$32.65.

Note: Tiger Global's ownership stake is at ~19%.

Transdigm Group (TDG): TDG is a 5.18% 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 in Q1 2018: ~44% increase at prices between $270 and $317. The stock currently trades at ~$469. The two quarters thru Q3 2018 had seen a ~35% selling at prices between $301 and $373 while last quarter saw a ~12% stake increase.

Note 1: Tiger Global has a 3.9% ownership stake in Transdigm Group.

Note 2: 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.

StoneCo Ltd. (STNE): STNE is a 2.41% of the portfolio stake that came about as a result of its IPO in October. Tiger Global had a stake in the business prior to the IPO. The offering was priced at $24 (first day close was ~$31), and the stock is currently at ~$26.63. Tiger Global has a ~8% ownership stake in the business.

Salesforce.com (CRM): CRM is a ~2% position purchased in Q4 2017 at prices between $93 and $109 and increased by just over 200% next quarter at prices between $104 and $128. It now goes for $161.

MercadoLibre (MELI): MELI is a ~1% portfolio stake established in Q1 2018 at prices between $320 and $414 and increased by ~85% next quarter at prices between $285 and $356. The stock is currently at ~$605. Q3 2018 saw a ~38% selling at prices between $295 and $385, and that was followed with a ~57% reduction last quarter at prices between $258 and $370.

New Oriental Education (EDU): EDU is a ~1% portfolio position purchased in Q4 2016 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 $89.29. There was a ~23% selling last quarter at prices between $51 and $71.

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

Mastercard Inc. (MA) and Tencent Music Entertainment (TME): These two very small positions (less than ~0.70% 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: Atlassian Corp. plc (TEAM), Avalara (AVLR), Barclays (BCS), Bilibili Inc. (BILI), Ceridian HCM (CDAY), Cloudera Inc. (CLDR), DocuSign Inc. (DOCU), Dropbox (DBX), Elastic NV (ESTC), Farfetch Ltd. (FTCH), Farmland Partners (FPI), FireEye Inc. (FEYE), Fitbit Inc. (FIT), HUYA Inc. (HUYA), iQiyi Inc. (IQ), LendingClub Corp. (LC), MongoDB Inc. (MDB), Netshoes Cayman (NETS), Okta Inc. (OKTA), OneSmart Intl. (ONE), J. C. Penney (JCP), Pinduoduo Inc. (PDD), Pivotal Software (PVTL), Pure Storage (PSTG), Puxin Ltd (NEW), Redfin Corp. (RDFN), RISE Education Cayman (REDU), Shopify Inc. (SHOP), Smartsheet Inc. (SMAR), Sogou Inc. (SOGO), SolarWinds Corp. (SWI), Sunlands (STG), Switch Inc. (SWCH), Tenable Holdings (TENB), Visa Inc. (V), and ZTO Express Cayman (ZTO).

Note: Last 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 & 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 $46.34.

Below is a spreadsheet that shows the changes to Chase Coleman's Tiger Global Holdings 13F portfolio holdings as of Q1 2019:

Chase Coleman - Tiger Global - Q1 2019 13F Report Q/Q Comparison

Disclosure: I am/we are long BABA, 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.