Billionaire Stephen Mandel’s Latest Stock Picks Include Google Inc (GOOG)

Page 1 of 2

We have been working on putting together our database of 13F filings from the fourth quarter of 2012. Hedge funds and other major investors are required to disclose many of their long equity positions as of the end of the quarter (in this case, the end of December) in these documents. The standard use of these filings is to review top investors’ portfolios and treat them as free recommendations that the investment community can do more research on if the names in question seem appealing. We also like to develop investment strategies based on our database of filings; for example, the most popular small cap stocks among hedge funds have, on average, outperformed the S&P 500 by 18 percentage points per year (learn more about our small cap strategy).

Stephen Mandel is a Tiger Cub, having previously worked at legendary investor- and billionaire- Julian Robertson’s Tiger Management. Mandel has become a billionaire himself through managing Lone Pine Capital, which has over $15 billion in assets under management. Read on for our analysis of three themes in the hedge fund’s portfolio and compare its holdings to those reported in previous filings.

LONE PINE CAPITALSelling Apple and eBay. Mandel and his team sold all their shares of Apple Inc. (NASDAQ:AAPL); at the end of September, Lone Pine had owned a little over 800,000 shares of Apple. A number of hedge funds were making similar trades, and in fact Apple Inc. (NASDAQ:AAPL) lost its place as the most popular stock among hedge funds last quarter (see more stocks hedge funds liked). Apple Inc. (NASDAQ:AAPL)’s stock trades at 11 times earnings as the stock has seen a sharp pullback in the last few months. The hedge fund also reduced its stake in eBay Inc (NASDAQ:EBAY) from about 13 million shares to 8.5 million between October and December, another significant sale. eBay is more of a growth stock; a 62% increase in the stock price in the last year has given it a trailing earnings multiple of 29. This has been inspired by the growing payments business, and in fact revenue was up 18% last quarter compared to the fourth quarter of 2011 though earnings were down.

Adding to top two picks. Our database shows that Lone Pine’s two largest holdings by market value at the end of the third quarter were Priceline.com Inc (NASDAQ:PCLN) and Google Inc (NASDAQ:GOOG). Tiger Global, another Tiger Cub fund, had also included these stocks among its top picks (find Tiger Global’s favorite stocks). During Q4 Lone Pine was buying both of these stocks, despite being so committed to them already: it reported 1.8 million shares of Priceline and 1.6 million shares of Google Inc (NASDAQ:GOOG) at the end of the quarter. Priceline is a pure growth company, with earnings up over 20% in its most recent quarterly report versus a year earlier but quite a bit of those prospects accounted for with a trailing earnings multiple of 27. Google Inc (NASDAQ:GOOG) is integrating its acquisition of Motorola Mobility Holdings, which has resulted in a temporary hit to earnings; analyst consensus implies that by next year the bottom line will have recovered enough that the forward P/E is 15 at current prices.

See one more stock that Lone Pine liked last quarter:

Page 1 of 2
Comments
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

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs 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!