Apple Inc (AAPL) is Among Tiger Cubs Coleman and Citrone’s Favorite Stocks

TIGER GLOBAL MANAGEMENT LLCApple Inc (NASDAQ:AAPL), Visa (NYSE:V), Priceline (NASDAQ:PCLN), and Yandex (NASDAQ:YNDX) are billionaire Chase Coleman’s and Rob Citrone’s favorite stocks. Tiger Global Management and Discovery Capital Management are both run by alumni of Julian Robertson’s Tiger Management. Chase Coleman and Rob Citrone, along with their respective teams, each hold 13F positions valued in the mid billions and invest heavily in technology and services (see past activity at Discovery and Tiger Global). We went through each fund’s 13F filings and here are some stocks which both Tiger Global and Discovery owned at the end of the second quarter:

Both funds had the same largest holding: Apple Inc (NASDAQ:AAPL). Tiger Global increased its position 14% to 1.4 million shares, while Discovery’s addition of shares brought it close to 2 million. We imagine that both funds have profited handsomely from their Apple stakes, and despite the company’s massive size it still looks like a good value on a quantitative basis. It trades at 15 times forward earnings despite excellent growth opportunities, and only 13 times forward earnings estimates. Apple Inc (NASDAQ:AAPL) also has billions in cash on its balance sheet that it can use to augment its growth or increase its dividend.

Another stock which was in the top ten of each fund’s holdings according to their respective 13Fs was credit card issuer Visa (NYSE:V). Discovery owned 1.8 million shares of the stock and Tiger Global owned 3 million. Visa stock has also had a good year, up 24%, as Robertson’s prediction from last fall that credit card stocks would do well has proven correct. Sell-side analysts believe that at least in Visa’s case there is more growth to come, with the company carrying a forward P/E of 18 and a five-year PEG ratio of 1.1. With a beta of 0.8, the stock is also not particularly sensitive to fluctuations in the broader market.

Priceline (NASDAQ:PCLN) was another top stock pick from both funds. Discovery upped its stake 32% to about 130,000 shares, and Tiger Global reported a position of about 870,000 shares in its portfolio. Priceline is another growth stock, increasing its revenue 20% and its earnings 37% in its most recent quarter compared to the same period a year ago. Yet it trades at the relatively low value of 24 times trailing earnings, which assuming the same growth trajectory as Wall Street analysts gives it a forward P/E of 16 and a five-year PEG ratio of 0.9.

Tiger Global has had Yandex (NASDAQ:YNDX), a $7 billion market cap search engine focused on Russian operations, for some time. It cut its position this quarter but still owned 32 million shares at the end of June. Discovery seems to have agreed that Yandex is a buy, more than tripling its own position in the stock to 3.2 million shares. The stock is down 28% from a year ago, and Russia might not be the best country for an investor to hitch a wagon to, but the business reported a 50% increase in revenue and a 76% increase in earnings in its last quarter compared to a year ago. The company trades at 19 times its estimated earnings for 2013 and a five-year PEG ratio of 0.7.

We’re wary of Yandex but based on the financials it could be a good growth find, and given the interest from two top hedge fund managers we will look at it in more depth and would advise investors to do the same. Visa has been a popular pick but we think it has gotten a bit pricy, and that other credit card companies might be better values at this point. As far as Priceline goes, we generally prefer value investments but note that the company can underperform Street growth targets and still prove undervalued- and, again, we would note the large positions from both of these investors and their teams. Apple Inc (NASDAQ:AAPL)’s incredible growth may slow, but it is nearly in value stock territory as it is and we can see why these funds both have Apple Inc at the top of their portfolios.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!