Tracking Lone Pine Capital Portfolio - Q1 2022 Update

May 30, 2022 11:30 PM ETADBE, AMPL, AMZN, AVDX, BBWI, BEKE, BILL, CFLT, DASH, DDOG, DKS, META, FCNCA, FCNCB, FCNCO, FCNCP, FRSH, FTCH, HUBS, MA, MQ, MSFT, MTCH, NOW, NTES, PVH, RH, SG, SHOP, SNAP, SNOW, SQ, TEAM, TMO, TSM, UNH, V, VSCO, VTEX, WDAY, SHOP:CA2 Comments11 Likes
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John Vincent
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Summary

  • Lone Pine Capital’s 13F portfolio value decreased from $24.41B to $16.80B. The number of positions increased from 29 to 30.
  • They added Taiwan Semi and Meta Platforms while dropping Adobe, KE Holdings, and Snowflake.
  • The top three positions are Microsoft, Amazon, and Workday. They add up to ~25% of the portfolio.

Small Tiger

Antagain/iStock via Getty Images

This article is part of a series that provides an ongoing analysis of the changes made to Lone Pine Capital's 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 5/16/2022. Please visit our Tracking Stephen Mandel's Lone Pine Capital Portfolio article for an idea on their investment philosophy and our previous update for the fund's moves during Q4 2021.

This quarter, Lone Pine's 13F portfolio value decreased ~31% from $24.41B to $16.80B. The number of holdings increased from 29 to 30. The top three positions are at ~25% while the top five are ~38% of the 13F assets: Microsoft, Amazon, Workday, ServiceNow, and Bath & Body Works.

Note: Stephen Mandel stepped down from managing investments at Lone Pine Capital in January 2019 in a previously announced (September 2017) move. He is currently a managing director at the firm. Stephen Mandel worked at Tiger Management under Julian Robertson for eight years starting in the late 1980s, 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:

Taiwan Semi (TSM), Meta Platforms (FB), Atlassian Corp plc (TEAM), and DICK'S Sporting Goods (DKS): These are the new positions this quarter. TSM is a fairly large 4.90% of the portfolio position at prices between ~$99 and ~$141 and the stock currently trades below that range at $93.77. The 4.85% of the portfolio FB stake at prices between ~$187 and ~$339 and it is now at ~$195. TEAM is a 2.45% of the portfolio position established at prices between ~$239 and ~$350 and the stock is now well below that range at ~$185. The 2.22% DKS stake was purchased at prices between ~$98 and ~$118 and the stock currently trades well below that range at $84.70.

Bill.com Holdings (BILL), Thermo Fisher Scientific (TMO), HubSpot, Inc. (HUBS), First Citizens BancShares (FCNCA), and Proshares VIX Sh Trm Fut (VIXY) Puts: These are small (less than ~2% of the portfolio each) stakes purchased during the quarter.

Stake Disposals:

KE Holdings (BEKE): The 2.55% BEKE stake was purchased in Q2 2021 at prices between ~$44.50 and ~$61. There was a ~130% stake increase next quarter at prices between $15.60 and $47. The elimination this quarter was at prices between ~$9 and ~$23. It is now at $11.49.

Adobe (ADBE): ADBE was a 2.54% of the portfolio first purchased in Q1 2014 and almost doubled the following quarter at prices between $60 and $73. 2015 saw that original stake reduced by two-thirds at prices between $73 and $96. Q4 2020 saw a ~20% stake increase at prices between ~$445 and ~$514. That was followed with a ~30% stake increase next quarter at prices between ~$421 and ~$502. Last four quarters saw the position sold at prices between ~$416 and ~$688. The stock currently trades at ~$428.

Snowflake (SNOW): SNOW was a 2.29% of the portfolio stake purchased last quarter at prices between ~$295 and ~$402. The stake was sold this quarter at prices between ~$167 and ~$332. The stock currently trades at ~$130.

Amplitude, Inc. (AMPL), Confluent, Inc. (CFLT), Freshworks (FRSH), NetEase, Inc. (NTES), and PVH Corp. (PVH): These small (less than ~2% of the portfolio each) positions were dropped this quarter.

Stake Decreases:

Amazon.com (AMZN): AMZN is currently the second-largest 13F stake at 8.65% of the portfolio. It was established in Q4 2017 at prices between $957 and $1196. The position has wavered. Recent activity follows. The three quarters through Q4 2020 saw a ~55% reduction at prices between ~$1907 and ~$3444 while next quarter there was a ~90% stake increase at prices between ~$2956 and ~$3380. Q3 2021 saw a ~25% selling at prices between ~$3188 and ~$3731 while next quarter there was a ~70% stake increase at prices between ~$3190 and ~$3696. The position was reduced by ~30% this quarter at prices between ~$2720 and ~$3408. The stock is now at ~$2303.

Workday, Inc. (WDAY): The top-three 7.30% WDAY stake was established over the last four quarters at prices between ~$221 and ~$301 and it is now at ~$159. This quarter saw a ~12% trimming.

ServiceNow, Inc. (NOW): NOW is a 6.56% stake established in Q2 2017 at prices between $84.50 and $118. The position has since wavered. Recent activity follows. Q2 2020 saw a one-third increase at prices between $250 and $403. Q4 2020 saw similar selling at prices between ~$476 and ~$565. There was a stake doubling in H1 2021 at prices between ~$454 and ~$595. Last two quarters had seen a ~20% selling at prices between ~$545 and ~$702. The stock is now at ~$476. There was marginal trimming this quarter.

Bath & Body Works (BBWI), previously L Brands: The large (top five) 6.32% BBWI stake was purchased in Q1 2020 at prices between ~$9 and ~$25 and it is now at $42.45. There was a ~15% trimming in the last two quarters.

Note: Lone Pine Capital has a ~9% ownership stake in Bath & Body Works. Their implied cost-basis is understated in the prices above as ~$14 per share in value came back to them with the Victoria's Secret spinoff transaction (one share of VSCO for every three shares held) in July.

Mastercard (MA) and Visa (V): These are fairly large new stakes established last quarter. MA is a 5.15% of the portfolio position purchased at prices between ~$306 and ~$370 and the stock currently trades at ~$358. The position was reduced by ~50% this quarter at prices between ~$313 and ~$397. The 4.54% of the portfolio V position was established at prices between ~$190 and ~$234 and it is now at ~$213. The stake was reduced by ~30% this quarter at prices between ~$191 and ~$235.

Shopify Inc. (SHOP): SHOP is now at 4.16% of the portfolio. It was built in Q2 2019 at prices between $195 and $328. There was a one-third increase in Q4 2019 at prices between $286 and $409. The stock currently trades at ~$369. There was a ~25% reduction this quarter at prices between ~$513 and ~$1363.

Match Group (MTCH): The ~4% MTCH stake saw a ~70% stake increase in Q3 2020 at prices between ~$90 and ~$121. There was a one-third selling next quarter at prices between ~$110 and ~$156 while Q1 2021 saw a ~17% stake increase at prices between ~$131 and ~$172. That was followed with another ~25% stake increase next quarter at prices between ~$137 and ~$164. There was a ~30% selling this quarter at prices between ~$85 and ~$134. The stock currently trades at $79.84.

Snap Inc. (SNAP): SNAP is a ~4% of the portfolio stake established in Q4 2020 at prices between ~$26.50 and ~$53.50 and the stock currently trades at $15.58. Q1 2021 saw a ~25% stake increase at prices between ~$49 and ~$71. That was followed with a ~50% stake increase last quarter at prices between ~$44 and ~$77. This quarter saw a similar reduction at prices between ~$24.50 and ~$46.60.

DoorDash (DASH): The ~3% DASH stake was built over the three quarters through Q2 2021 at prices between ~$113 and ~$215. Last quarter saw a ~11% stake increase while this quarter there was a ~45% selling at prices between ~$76 and ~$145. The stock currently trades at $78.09.

Datadog Inc. (DDOG): DDOG is a 2.67% of the portfolio position established in Q2 2020 at prices between ~$34.50 and ~$90 and it currently goes for ~$98. There was a ~30% selling last quarter at prices between ~$137 and ~$197. This quarter also saw a ~9% trimming.

UnitedHealth Group (UNH): The 2.63% UNH stake was established in Q2 2017 at prices between $164 and $187 and increased by ~160% the following quarter at prices between $185 and $200. The position has wavered. Recent activity follows. There was a one-third selling in Q2 2020 at prices between ~$229 and ~$312 while next quarter saw a similar increase at prices between ~$291 and ~$324. There was a ~20% reduction in Q4 2020 at prices between ~$304 and ~$357. That was followed with a ~25% selling last quarter at prices between ~$387 and ~$506. This quarter saw another ~60% selling at prices between ~$456 and ~$521. The stock is now at ~$507.

Victoria's Secret (VSCO): L Brands spun off Victoria Secret & Company and renamed the remaining entity as Bath & Body Works. Terms called for L Brands shareholders to receive one share of VSCO for every three shares of L Brands held. VSCO shares started trading in July. Lone Pine Capital's 2.26% portfolio stake came from this transaction. Shares started trading at ~$42 and currently goes for $42.67. There was a ~15% trimming over the last two quarters.

Note: Lone Pine owns ~8.5% of Victoria's Secret.

Farfetch Ltd. (FTCH): FTCH is a 1.55% of the portfolio stake built over the last four quarters at prices between ~$26 and ~$73 and it is now well below that range at $9.73. This quarter saw a ~30% selling at prices between ~$11 and ~$34.

Note: Lone Pine Capital has a ~5.5% ownership stake in Farfetch.

Marqeta, Inc. (MQ): The small ~1% stake in MQ saw a minor ~5% trimming this quarter.

Note: Lone Pine owns ~7% of Marqeta.

Stake Increases:

Microsoft Corporation (MSFT): MSFT is currently the largest position at ~9% of the portfolio. It was established in Q2 2017 at prices between $65 and $72.50. There was a ~15% trimming in Q4 2017 at prices between $74 and $87 while next quarter saw a ~26% increase at prices between $85 and $97. The five quarters through Q4 2019 had seen a ~63% selling at prices between $98 and $159 while next quarter saw a ~17% stake increase at prices between ~$135 and ~$189. Q1 2021 saw a ~25% stake increase at prices between ~$212 and ~$245 while in the next two quarters there was a ~40% selling at prices between ~$242 and ~$305. The stock is now at ~$273. This quarter saw a minor ~7% stake increase.

Note:MSFT has had a previous round-trip: It was a large (top five) 4.93% of the portfolio position in Q4 2016. The bulk of the position was from H1 2015 at prices between $40 and $48. The five quarters through Q3 2016 had seen a combined ~50% selling at prices between $43 and $58. The elimination in Q1 2017 happened at prices between $62 and $66.

RH (RH): The 3.32% of the portfolio RH stake was purchased in Q2 2021 at prices between ~$588 and ~$720. Next quarter saw a ~25% stake increase at prices between ~$652 and ~$739. Last quarter saw a similar increase at prices between ~$527 and ~$690. This quarter also saw a ~7% stake increase. The stock is now at $291.

Note: Lone Pine Capital has a ~7.5% ownership interest in RH.

Block, Inc. (SQ) previously Square: The SQ stake was established in Q3 2020 at prices between ~$113 and ~$165. Q4 2020 saw a ~20% selling at prices between ~$155 and ~$242. That was followed with a ~25% reduction next quarter at prices between ~$202 and ~$277. There was a ~80% stake increase in Q2 2021 at prices between ~$197 and ~$273. The position was almost sold-out last quarter at prices between ~$158 and ~$265. The stake was rebuilt this quarter at prices between ~$89 and ~$164. The stock is now at $90.52.

Note: Square had a previous round-trip. It was a ~2% position built from Q2 2019 at prices between $57 and $82 and sold in Q2 2020 at prices between ~$44 and ~$105.

Kept Steady:

AvidXchange Holdings (AVDX), Sweetgreen, Inc. (SG), and VTEX (VTEX): These are very small (less than ~0.90% of the portfolio each) positions kept steady this quarter.

Note: Lone Pine has a 7.1% ownership stake in VTEX.

The spreadsheet below highlights changes to Mandel's 13F stock holdings in Q1 2022:

Stephen Mandel - Lone Pine Capital's Q1 2022 13F Report Q/Q Comparison

Stephen Mandel - Lone Pine Capital's Q1 2022 13F Report Q/Q Comparison (John Vincent (author))

This article was written by

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Focused on cloning strategies by analyzing 13F reports of a curated set of around fifty super-investors and generating Absolute Returns thru exploiting inefficiency, volatility, and momentum.
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Disclosure: I/we have a beneficial long position in the shares of AMZN, FB either through stock ownership, options, or other derivatives. 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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