Billionaire Chase Coleman’s Top Stock Picks

TIGER GLOBAL MANAGEMENT LLCTiger Global, run by Chase Coleman, has racked up very impressive returns through both private and public market investments (Tiger Global was an early investor in Facebook). The fund was up 45% last year and 28% through April of this year. Below we discuss some of his top holdings:

Yandex (NASDAQ: YNDX) is the leader in Russian online internet search market with 60% market share in overall Russian search and 45% market share in online advertising. The company is seeing secular growth in the online search space due to increasing broadband penetration and the offline to online trend. We believe that YNDX, with its projected 35% EPS CAGR in 2013 and experienced management team, is an optimal way to play this growth. Google (NASDAQ: GOOG), also a Tiger Global holding,  is the second largest player in this market with 26.2% market share, and Mail.ru rounds out the top three with 8.2% market share. YNDX’s overall market share is quite steady around the 60%, with a three-month average of 59.9%. Its Google Chrome share is also stable at 45.5% with a three-month average of 44.1%. Note that Opera is actually the dominant player in the Russian browser market. YNDX’s search volumes are also quite strong with search volumes up 36% y-o-y and 13% q-o-q last quarter. It’s true that total advertisers grew minimally (3% q-o-q), but we attribute this to seasonality and believe that the rollout of a Real-Time Bidding platform will support upcoming quarterly numbers. With search & portal peers trading at 23.1x 2012 EV/EBITDA and 12.1x 2013 EV/EBITDA and eCommerce peers trading at 19.1x 2012 EV/EBITDA and 12.8x 2013 EV/EBITDA, we view YNDX as attractively valued. YNDX currently trades at ~13.9x 2012 EV/EBITDA and ~11.6x 2012 EV/EBITDA. We add that Mail.ru is an interesting opportunity that may warrant additional research. It trades at ~10.2x 2012 EV/EBITDA and ~8.2x 2013 EV/EBITDA but has comparable short-term growth prospects to YNDX and a diversified business model. Its discount to YNDX does not seem rational.

Apple (NASDAQ: AAPL) We view the recent pullback in AAPL shares as an opportunity for investors. We believe Apple will consistently deliver topline and EPS growth for a number of years. The stock has several upcoming catalysts that will propel the stock back into the $600 range and perhaps even into the $700 range. For one, the much anticipated iPhone 5 is scheduled to launch this Fall, which we expect will be more successful than the 4S launch. There will also be a Macbook refresh in either Q2 or Q3. And finally, the introduction of the iTV, which lacks proven profit making ability but makes up for it in immense potential. Strong iPad sales have not hurt either. The iTV is another step in building out AAPL’s ecosystem, which is where the value lies. With a huge cash balance and multiple catalysts coming up, we think these will continue AAPL’s revenue acceleration. In addition to product rollouts, we believe increasing emerging markets penetration and a foray into the enterprise markets will drive profitability. Apple was the most popular stock among hedge funds at the end of March (see the 10 most popular stocks).

Liberty Global (NASDAQ: LBTYA) After the disposal of Austar, LBTYA has emerged as a relatively pure European cable investment. The primary non-European asset is Chile; compare this to 2009 when close to 25% of the company’s enterprise value was derived outside of Europe. LBTYA is currently on track to generate 4% revenue CAGR and a 6% operating cash flow CAGR over the next few years, which are strong numbers relative to its peers in the European telecom market. As demand increases for faster broadband speed and data consumption grows, we are very positive on LBTYA’s ability to take market share and scale its presence in the region. According to management, there is a place for mobile in the company’s product portfolio, but it seems there is limited interest in cable operators developing the kind of infrastructure that mobile network operators currently have. We think this is a reasonable stance as long as LBTYA is able to maintain its competitive advantage in broadband. And though the Senate’s approval of amendments to the Dutch Telecoms Act and Dutch Media Act may serve as a headwind on the stock, we are not too concerned of a negative impact to LBTYA. Hedge fund managers Philippe Laffont and Eric Mindich initiated brand new positions in Liberty Global during the first quarter.

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

Insider Monkey beat the market by 44 percentage points in 21 months Learn how!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

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!