Seeking Alpha

Tracking Chase Coleman's Tiger Global Portfolio - Q2 2019 Update

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

Chase Coleman’s 13F portfolio value increased from $18.11B to $18.47B this quarter.

Tiger Global increased Microsoft, while reducing Spotify and dropping Booking Holdings during the quarter.

The largest three positions are Microsoft Corporation, Facebook, and JD.com, and they add up to ~29% 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 08/14/2019. 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 Q1 2019.

Chase Coleman’s 13F portfolio value increased ~2% this quarter, from $18.11B to $18.47B. 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 Microsoft Corporation (MSFT), Facebook (FB), JD.com (JD), Amazon.com (AMZN), and Fiat Chrysler (FCAU). Together, they add up to ~43% 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

Uber Technologies (UBER), GDS Holdings (GDS), and Zoom Video (ZM): These are the new 13F positions this quarter. UBER and ZM had IPOs during the quarter. The 1.67% of the portfolio UBER stake goes back to funding rounds in 2015. UBER started trading at $41.50 and is currently at ~$32. ZM had an IPO in April. Shares started trading at ~$62, and it currently goes for ~$93.50. Tiger Global’s stake is very small at 0.58% of the portfolio. The 1.17% GDS position was established at prices between $31.25 and $41, and it is now just over that range at $41.13.

Stake Disposals

Booking Holdings (BKNG) & Calls (previously Priceline): BKNG was a 2.73% of the portfolio position. The stake was purchased in Q4 2015 at prices between $1237 and $1465. Q3 2016 saw a one-third increase at prices between $1248 and $1473, and that was followed with another similar increase the following quarter at prices between $1424 and $1578. There was a ~15% trimming in Q1 2017, and that was followed with a ~27% selling in Q4 2017 at prices between $1646 and $1943. Q1 2018 saw another ~18% selling at prices between $1750 and $2206, and that was followed with a one-third reduction in Q4 2018 at prices between $1617 and $1998. There was another ~37% selling last quarter at prices between $1650 and $1936. The disposal this quarter was at prices between $1650 and $1900. The stock is now at $1959.

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.

Domino’s Pizza (DPZ): DPZ was 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. Last quarter saw another ~35% selling at prices between $240 and $295. The elimination this quarter was at prices between $245 and $287. The stock currently trades at $239.

Restaurant Brands International (QSR) and Uxin Limited ADR (UXIN): These minutely small positions (less than ~0.50% of the portfolio each) were disposed this 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 $29.88. H2 2018 had seen a ~42% increase at prices between $19.25 and $39.50. It is their third-largest 13F position at 8.67% of the portfolio (~53M shares). For investors attempting to follow Tiger Global, JD is a good option to consider for further research. This quarter saw a ~9% trimming.

Spotify Technology (SPOT): Spotify is a venture capital investment that became part of their 13F portfolio following its IPO in Q2 2018. SPOT started trading at ~$150 and currently goes for ~$134. Last quarter saw a ~36% selling at prices between $109 and $151, and that was followed with another ~50% selling this quarter at prices between $122 and $150. Tiger Global still controls ~2.3% of Spotify, and the stake is at 3.29% of the portfolio.

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 last September. Eventbrite IPO was priced at $23 and started trading at $36. The stock is currently at $17.12. There was a ~40% selling this quarter at prices between $15.50 and $25. The SVMK IPO was priced at $12 and started trading at $18.75. It currently goes for $16.60. The position was reduced by ~40% last quarter at prices between $11.75 and $18.30. That was followed with a ~25% reduction this quarter at prices between $15.75 and $18.30. The EB and SVMK stakes are currently at 0.73% and 1.21% of the portfolio respectively.

Note: Tiger Global controls ~11% each of Eventbrite. Regulatory filings since the quarter ended show them owning 6.55M shares of SVMK. This is compared to 13.6M shares in the 13F report.

Despegar.com Corp. (DESP): DESP is a small 0.70% 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 $10.25. There was a ~20% reduction in Q3 2018 at prices between $15 and $22, and that was followed with a ~50% selling next quarter at prices between $11.50 and $17. This quarter saw another ~25% selling at prices between $11.90 and $15.

Note: Tiger Global’s ownership stake in the business is ~14%.

StoneCo Ltd. (STNE): STNE is now a minutely small 0.31% of the portfolio stake. It came about as a result of its IPO last 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 $32.28. This quarter saw the position almost sold out at prices between $24.50 and $43.

Tencent Music Entertainment (TME): The minutely small 0.22% TME stake was reduced by ~50% during the quarter.

Stake Increases

Microsoft Corporation: MSFT is currently the largest 13F position at ~11% of the portfolio. It was established in Q4 2016 at prices between $57 and $63, and increased by ~400% in Q2 2017 at prices between $65 and $72. Q1 2018 also saw a ~38% stake increase at prices between $85 and $97. The stock is now at ~$138. There was a ~15% further increase this quarter.

Facebook Inc.: The large (top-three) 9.38% 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 $187. Q3 2018 saw a ~25% selling at prices between $160 and $218, while next quarter there was a ~16% increase at prices between $124 and $162. There was another two-thirds increase last quarter at prices between $132 and $173. This quarter saw a marginal further increase.

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% 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 an ~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 next quarter at prices between $14 and $18. The stock is now at $13.57. For investors attempting to follow, FCAU is a good option to consider for further research. The last two quarters have also seen minor increases.

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

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 4.27% 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 in Q4 2018 at prices between $234 and $381, and that was followed with a ~43% increase last quarter at prices between $268 and $378. The stock currently trades at ~$292. This quarter saw a marginal increase.

Sunrun Inc. (RUN): The 2.22% of the portfolio RUN stake has seen consistent buying since Q2 2018, when around 8M shares were purchased at prices between $8.50 and $14. This quarter saw an ~18% stake increase at prices between $14 and $20. The stock is currently at $15.33.

Note: Regulatory filings since the quarter ended show them owning ~24M shares (20.4% of business). This is compared to 21.9M shares in the 13F report.

RingCentral Inc. (RNG), Twilio Inc. (TWLO), and Carvana Inc. (CVNA): These three positions established last quarter were increased this quarter. RNG is a 1.87% of the portfolio position purchased at prices between $78.50 and $112, and increased by ~120% this quarter at prices between $103 and $125. The stock currently trades at ~$141. The 0.80% TWLO stake was established at prices between $81 and $136, and it is now above that range at $132. This quarter saw a ~3% stake increase. CVNA is a ~1% portfolio position purchased at prices between $30 and $60, and increased by ~38% this quarter at prices between $58 and $75. The stock is now well above those ranges at $81.78.

Note: Tiger Global has a 5.8% ownership stake in Carvana.

SmartSheet Inc. (SMAR): The very small 0.59% portfolio stake in SMAR was mostly bought this quarter at prices between $38 and $49, and the stock currently trades at $47.91.

Kept Steady

Amazon.com Inc.: AMZN is currently a top-five 13F stake at 7.22% 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 in Q4 2018 at prices between $1344 and $2013, and that was followed with a ~5% trimming last quarter. The stock is now at $1801.

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.

Apollo Global Management (APO): APO is a large ~7% 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. Q4 2018 also saw a ~9% stake increase. The stock is now at $38.86.

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

Transdigm Group (TDG): TDG is a 5.41% 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: a ~44% increase at prices between $270 and $317. The stock currently trades at ~$537. The two quarters through Q3 2018 had seen a ~35% selling at prices between $301 and $373, while next 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.

Alibaba Group Holdings (BABA): BABA is a ~4% 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 in 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 next quarter saw a ~36% selling at prices between $131 and $164. The stock currently trades at $174. There was a ~5% stake increase last quarter.

FleetCor Technologies (FLT): FLT is a 2.63% of the portfolio stake first purchased in Q4 2012 at prices between $45 and $53. The position has wavered. In recent activity, 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 next quarter there was a ~60% increase at prices between $176 and $227. The stock is now at ~$298. There was a ~4% trimming last quarter.

TAL Education (TAL): The 1.94% 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 next quarter there was a similar reduction. The stock is now at $34.53. Last 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.

Sea Limited (SE): The 2.45% position in SEA has seen consistent buying since Q2 2018, when around 6M shares were purchased at prices between $10.25 and $16.50. The stock is now at $31.91.

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

Salesforce.com (CRM): CRM is a 1.88% 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 $153.

Zendesk Inc. (ZEN): ZEN is a 1.30% position established in Q3 2018 at prices between $54.50 and $72, and increased by ~15% next quarter. There was an about-turn last quarter: a ~25% selling at prices between $55.50 and $86. The stock is now at $79.41.

MercadoLibre (MELI): MELI is a 1.29% 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 ~$590. Q3 2018 saw a ~38% selling at prices between $295 and $385, and that was followed with a ~57% reduction next quarter at prices between $258 and $370.

New Oriental Education (EDU): EDU is a 1.23% 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 $109. There was a ~23% selling in Q4 2018 at prices between $51 and $71.

Adobe Systems (ADBE), 8X8 Inc. (EGHT), Mastercard Inc. (MA), and ServiceNow Inc. (NOW): These very small (less than ~1% of the portfolio each) positions were kept steady during the 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 Bank (BCS), Bilibili Inc. (BILI), Ceridian HCM Holding (CDAY), Chewy Inc. (CHWY), Cloudera Inc. (CLDR), CrowdStrike Holdings (CRWD), Docusign Inc. (DOCU), DropBox (DBX), Elastic N.V. (ESTC), Farfetch Ltd. (FTCH), Farmland Partners (FPI), Fastly Inc. (FSLY), FireEye Inc. (FEYE), Fitbit Inc. (FIT), Huya Inc. (HUYA), Iqiyi Inc. (IQ), LendingClub Corp. (LC), Luckin Coffee (LK), MongoDB Inc. (MDB), Okta Inc. (OKTA), OneSmart International Education Group (ONE), PagerDuty Inc. (PD), J.C. Penney (JCP), Pinduoduo Inc. (PDD), Pivotal Software (PVTL), Pure Storage (PSTG), Redfin Corp, (RDFN), RISE Education Cayman (REDU), Shopify Inc. (SHOP), Sogou Inc. (SOGO), SolarWinds Corp. (SWI), Sunlands Technology Group (STG), Switch Inc. (SWCH), Tenable Holdings (TENB), The RealReal (REAL), Visa Inc. (V), and ZTO Express (Cayman) (ZTO).

Note: In July 2018, 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 believed NAV was $190B which implied the stock would have to double for NAV to reach current price (~$20 per share at the time after accounting for a 2-for-1 stock split). The stock currently trades at $22.37.

Below is a spreadsheet that shows the changes to Chase Coleman's Tiger Global Holdings 13F portfolio holdings as of Q2 2019:

Chase Coleman - Tiger Global

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.