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 02/14/2020. 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 Q3 2019.
Chase Coleman’s 13F portfolio value decreased ~4% this quarter from $18.88B to $18.12B. Recent 13F reports have shown around 50 positions. 36 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, Apollo Global, Microsoft Corporation, Facebook, and Transdigm Group. Together, they add up to ~45% 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:
PayPal Holdings (PYPL) and Alphabet Inc. (GOOG): These two are the new positions this quarter. The 1.46% of the portfolio PYPL stake was purchased at prices between $96 and $110 and the stock currently trades just above that range at $111. GOOG is a very small 0.79% of the portfolio position established at prices between $1175 and $1360 and it is now at $1298.
Stake Disposals:
Fiat Chrysler (FCAU): FCAU was a fairly large ~5% of the portfolio position. It was first purchased in Q4 2016 at prices between $6 and $9. There was a ~60% selling in H1 2017 at prices between $9.50 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 next quarter at prices between $14 and $18. Last quarter saw the pattern reverse: ~20% selling at prices between $12.30 and $14.30. The disposal this quarter was at prices between $12.25 and $16.20. The stock is now at $11.83.
Note: Tiger Global’s ownership stake was at ~4.8% as of last quarter.
Mercadolibre (MELI): MELI was a 1.14% 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 ~$615. 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. The position was disposed this quarter at prices between $483 and $599.
Stake Increases:
Uber Technologies (UBER) and Zoom Video (ZM): These were new 13F positions established in Q2 2019. They had IPOs during the quarter. The 3.55% of the portfolio UBER stake goes back to funding rounds in 2015. UBER started trading at $41.50 and is currently at $31.68. This quarter saw a ~225% stake increase to a 3.55% portfolio stake at prices between $26 and $33.75. For investors attempting to follow, UBER is a good option to consider for further research. ZM had an IPO in April. Shares started trading at ~$62 and it currently goes for ~$114. Tiger Global’s stake is very small at 0.46% of the portfolio. This quarter saw a marginal increase.
RingCentral Inc. (RNG): RNG is a ~3% of the portfolio position purchased in Q1 2019 at prices between $78.50 and $112 and increased by ~120% next quarter at prices between $103 and $125. The stock currently trades just above those ranges at ~$217. Last quarter saw a ~9% increase while this quarter there was a marginal further increase.
Sunrun Inc. (RUN): The 2.27% 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. Q2 2019 saw a ~18% stake increase at prices between $14 and $20. That was followed with a roughly one-third increase last quarter at around ~$17 per share average cost. The stock is currently at $20.22. This quarter saw a ~4% further increase.
MongoDB (MDB): The 1.39% portfolio stake in MDB was established over the last four quarters at prices between $115 and $150 and it is now at ~$150.
Twilio Inc. (TWLO): The ~1% TWLO stake was established in Q1 2019 at prices between $81 and $136. This quarter saw a ~75% stake increase at prices between $91 and $117. It is now at ~$102.
SmartSheet Inc. (SMAR): The small 1.17 % portfolio stake in SMAR was mostly bought over the last two quarters at prices between $36 and $55 and the stock currently trades at $43.21. This quarter also saw a ~7% stake increase.
Atlassian Corp plc (TEAM), Elastic NV (ESTC), and Pinduoduo Inc. (PDD): These three positions saw large stake increases during the quarter. TEAM is a ~1% portfolio stake that saw a ~150% stake increase during the quarter at prices between $108 and $133. The stock currently trades at $144. The 1.43% ESTC stake was primarily purchased this quarter at prices between $61 and $87 and the stock is currently at $64.14. PDD is a 1.24% position that saw a ~175% stake increase during the quarter at prices between $31.25 and $43.50. It is now at $36.76.
8X8 Inc. (EGHT), Anaplan (PLAN), and MasterCard Inc. (MA): These very small (less than ~1% of the portfolio each) positions were increased during the quarter.
Stake Decreases:
Microsoft Corporation (MSFT): MSFT is a top three position at 9.47% 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 ~$162. There was a ~15% further increase in Q2 2019. This quarter saw a ~30% selling at prices between $135 and $159. Tiger Global is starting to harvest gains.
Facebook Inc. (FB): The large (top five) 9.42% FB stake was established in Q4 2016 at prices between $115 and $132. The buying continued thru Q2 2019 at prices up to ~$200. This quarter saw a ~25% selling at prices between $175 and $208. The stock currently goes for $181.
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.
Amazon.com Inc. (AMZN): AMZN is currently a large 13F stake at 6.24% 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. The stock is now at $1901. This quarter saw a ~13% trimming.
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 in Q1 2014 in the high-300s realizing huge gains.
Alibaba Group Holdings (BABA): BABA is a fairly large ~4% portfolio stake established in Q3 2016 at prices between $78.50 and $109. The position had since wavered. Last quarter saw a ~80% stake increase at prices between $154 and $183 while this quarter there was a ~55% selling at prices between $162 and $216. The stock currently trades at $205.
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 ~$145. Q1 2019 saw a ~36% selling at prices between $109 and $151 and that was followed with another ~50% selling next quarter at prices between $122 and $150. Last two quarters have also seen minor trimming. The stake is now at 2.87% of the portfolio.
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 2.77% position was purchased in Q3 2017 at prices between $146 and $189. The stake has wavered. This quarter saw a ~30% selling at prices between $267 and $337. The stock currently trades at ~$369.
Sea Limited (SE): The 1.86% position in SEA had 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 $50.35. This quarter saw a ~40% selling at prices between $26.70 and $40.25.
Note: Tiger Global’s ownership stake in Sea Limited is ~5% of business.
TAL Education (TAL): The 1.53% 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 $56.49. This quarter saw a ~40% reduction at prices between $33.70 and $48.50.
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.
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 $129. There was a ~23% selling in Q4 2018 at prices between $51 and $71. That was followed with a ~40% reduction this quarter at prices between $108 and $128.
Salesforce.com (CRM): CRM is now a small 0.66% position. It was 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 $164. This quarter saw the stake reduced by ~70% at prices between $142 and $165.
Adobe Systems (ADBE), New Relic Inc. (NEWR), ServiceNow Inc. (NOW), and Zendesk Inc. (ZEN): These very small (less than ~1% of the portfolio each) positions were reduced during the quarter.
Kept Steady:
JD.com (JD) & 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. H2 2018 had also seen a ~42% increase at prices between $19.25 and $39.50. It is their third-largest 13F position at ~10% of the portfolio (~53M shares). The stock is now at $42.16.
Apollo Global Management (APO): APO is a large (top three) 9.92% 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 $40.50.
Note: Regulatory filings since the quarter ended show them owning 33.9M shares of APO. This is compared to 37.7M shares in the 13F report. Around 3.75M shares were sold at $49.06. Tiger Global’s ownership stake is at ~15%.
Transdigm Group (TDG): TDG is a 6.38% 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. The position has wavered, Recent activity follows: The two quarters thru Q3 2018 had seen a ~35% selling at prices between $301 and $373 while next quarter saw a ~12% stake increase. The stock is now at $503.
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.
FleetCor Technologies (FLT): FLT is a 2.74% of the portfolio stake first purchased in Q4 2012 at prices between $45 and $53. The position has wavered. Recent activity follows: Q1 2018 saw a ~60% increase at prices between $176 and $227. The stock is now at ~$249.
Carvana Inc. (CVNA): CVNA is a 2.50% portfolio position purchased in Q1 2019 at prices between $30 and $60 and increased by ~38% next quarter at prices between $58 and $75. Last quarter saw another ~75% stake increase at prices between $58 and $85. The stock is now at ~$66.
Note: Tiger Global has a ~10% ownership stake in Carvana.
GDS Holdings (GDS): The 1.63% GDS position was established in Q2 2019 at prices between $31.25 and $41 and it is now at $61.39.
Despegar.com (DESP): DESP is a small 0.69% 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 $10.87. 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. Q2 2019 saw another ~25% selling at prices between $11.90 and $15.
Note: Tiger Global’s ownership stake in the business is 13.4%.
The 13F portfolio also include the following minutely small (less than 0.5% of the portfolio each) positions: Avalara (AVLR), Barclays Bank (BCS), Bilibili Inc. (BILI), Bill.com Holdings (BILL), Cardlytics (CDLX), Ceridian HCM (CDAY), Chewy Inc. (CHWY), Cloudflare Inc. (NET), CrowdStrike (CRWD), Datadog Inc. (DDOG), Docusign Inc. (DOCU), DouYu Intl (DOYU), DropBox (DBX), Dynatrace Inc. (DT), Farfetch Ltd. (FTCH), Farmland Partners (FPI), Health Catalyst (HCAT), Huya Inc. (HUYA), Iqiyi Inc. (IQ), Linx SA (LINX), Livongo Health (LVGO), Medallia Inc. (MDLA), OneSmart Intl. (ONE), PagerDuty Inc. (PD), J C Penney (JCP), Redfin Corp (RDFN), Shopify Inc. (SHOP), Slack Technologies (WORK), SolarWinds Corp (SWI), Sunlands Online (STG), StoneCo (STNE), Sunlands Technology (STG), SVMK Inc. (SVMK), Tenable Holdings (TENB), Tencent Music (TME), Visa Inc. (V), WorkDay (WDAY), and XP Inc. (XP).
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 & 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 $22.18.
Below is a spreadsheet that shows the changes to Chase Coleman's Tiger Global Holdings 13F portfolio holdings as of Q4 2019:
Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
