Tag Archives: Tiger Global Management

Business, Finance, Occupation & Industry

Here's What This Hedge Fund Pioneer Has Been Buying

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By Selena Maranjian, The Motley Fool

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Editor’s Note: A previous version of this article erroneously attributed the founding of Tiger Global Management to Julian Robertson, who founded the unrelated hedge fund Tiger Management. Charles Coleman, who once worked for Robertson, founded Tiger Global Management. The author and the Fool regret the error.

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13-F” filings. Their latest moves can shine a bright light on smart stock picks.

Today let’s look at Tiger Global Management. The company’s reportable stock portfolio totaled $7.1 billion  in value as of Sept. 30, 2012, and contained just a few dozen stocks. Indeed, the top 10 holdings make up about 63%  of the overall portfolio’s value.

Interesting developments
So what does Tiger Global‘s latest quarterly 13-F filing tell us? Here are a few interesting details.

The biggest new holdings are Yahoo! and Burger King Worldwide . Other new holdings of interest include Questcor Pharmaceuticals and Heckmann . Questcor has a multiple-sclerosis drug, Acthar, which is selling solidly, and the company is looking to get into rheumatology as well. It has its risks, though, such as an investigation into its marketing practices, and competition.

Wastewater treatment and disposal specialist Heckmann is attracting fans in part because of its work serving the controversial fracking industry and its presence in just about every shale field. Insiders have been buying shares, and doubters have been shorting shares, leading to the possibility of a short squeeze, should the company continue to perform well.

Among holdings in which Tiger Global increased its stake was Baidu , the search engine giant of China, which has shrunk by 24% over the past year, thanks largely to China‘s slowing growth rate. The company has been a fast grower, with revenue and earnings sporting five-year average annual growth rates of more than 60%. Meanwhile, much of China and Asia has yet to get online, representing huge growth potential. Baidu does have serious competition, though — such as from Qihoo 360 Technology , which Tiger Global actually sold out of during the quarter.

Tiger Global reduced its stake in several companies, including Deckers Outdoor , maker of UGG boots and Teva sandals. With the company challenged by factors such as some rising costs and weakness in Europe, the stock has fallen by more than 60%  over the past year, and the company is now reportedly on the block. There’s clearly value there, though, with strong brands and its move to integrate vertically by opening its own retail stores.

Finally, Tiger Global‘s biggest closed positions included Qihoo 360 Technology and HomeAway . Other closed positions of interest include wireless communications specialist Ubiquiti Networks . Ubiquiti has been fighting counterfeit competition as well as some lawsuits, and it recently lowered guidance. Still, it looks promising on a number of measures, such as manageable debt, strong …read more
Source: FULL ARTICLE at DailyFinance

Business, Finance, Occupation & Industry

Here's What Tiger Global, a Hedge Fund Pioneer, Has Been Buying

Leave a comment

By Selena Maranjian, The Motley Fool

Filed under:

Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.

Today let’s look at Tiger Global Management, founded by Julian Robertson in 1980. Robertson, a hedge fund pioneer, reportedly racked up average annual gains of more than 30% in the 1980s and 1990s, and today his fund mainly manages his own money. His style is to go both long and short on stocks, explaining: “Our mandate is to find the 200 best companies in the world and invest in them, and find the 200 worst companies in the world and go short on them. If the 200 best don’t do better than the 200 worst, you should probably be in another business.”

The company’s reportable stock portfolio totaled $5.4 billion in value as of Dec. 31 and contained just a few dozen stocks. Indeed, the top 10 holdings make up about 62% of the overall portfolio’s value.

Interesting developments
So what does Tiger Global‘s latest quarterly 13F filing tell us? Here are a few interesting details.

The biggest new holdings are Starz and FleetCor Technologies. Other new holdings of interest include First Solar . The company has struggled, along with many peers, but bulls have high hopes for its projects in emerging markets such as India and note that it’s one of the lowest-cost installers and has a stronger balance sheet than its rivals. My colleague Travis Hoium thinks the company would do well to shift some attention from serving utilities to residential and commercial work, and that it might even change its financial structure.

Among holdings in which Tiger Global Management increased its stake were 3D Systems and Pitney Bowes . Three-dimensional-printing specialist 3D Systems recently disappointed investors with a strong quarter that just wasn’t as strong as many had hoped. Some worry about cutbacks in military or industrial spending, but there’s also a promising consumer market. Meanwhile, the recent price drop spells opportunity to some.

Long known for its postage-meter business, Pitney Bowes yields a whopping 11.5%. It has been challenged by the growth of electronic communications over mailed communications. On the plus side, though, Pitney Bowes is involved in other less-threatened  and higher-margin businesses as well, such as providing geocoding software to Facebook and others. The company recently posted estimate-topping quarterly results, and its single-digit P/E ratio is enticing, but it does carry some risks and considerable debt, and its hefty dividend may end up reduced.

Tiger Global Management reduced its stake in lots of companies, including Frontier Communications . Frontier offers a tantalizing 9.8% dividend yield, but it’s experiencing shrinking cash flow, steep interest expenses, and revenue drops in its data and Internet services. My colleague Rick Munarriz reminds us that steep yields bear close watching. Indeed, Frontier is paying out more than it’s making.

Finally, Tiger Global‘s biggest closed positions included …read more
Source: FULL ARTICLE at DailyFinance