Cognizant Technology Solutions Corp (CTSH), Liberty Global plc (LBYTK): How Lone Pine Capital Lost 1% in 6 Months

Lone Pine Capital, the hedge fund managed by Tiger cub Stephen Mandel, lost about 1%* in the first half of 2014. One investor in the funds assured that this was mainly due to the fact that Lone Pine missed out on some of the year’s largest gainers amongst the activist targets, airlines and yield-driven stocks, like REITs (Institutional Investors Alpha). Let’s, thus, take a look at some of Lone Pine’s biggest losers amongst its top picks, in order to better comprehend the fund’s losses.

Michael Kors Lone Pine Capital

Even though most of Lone Pine’s top picks rose over the first six months of the year, its largest position, Cognizant Technology Solutions Corp (NASDAQ:CTSH) lost 3.13% between January and June. This $30.6 billion market cap information technology (IT), consulting and business process services provider has been quite volatile this year, trading at prices ranging from $35.00 per share to $54.00 per share. The fund has been quite impacted by this, since it owns 28.72 million shares of Cognizant Technology Solutions Corp (NASDAQ:CTSH), worth more than $1.45 billion by the end of Q1. This position accounts for roughly 6.3% of Lone Pine’s Q1 total equity portfolio.

Other hedge funds that have been affected by Cognizant Technology Solutions Corp (NASDAQ:CTSH)’s fall during the first quarter are John Armitage’s Egerton Capital Limited, which owns 3.73 million shares, and Alan Fournier’s Pennant Capital Management, which holds 3.18 million shares.

Another big loser is Lone Pine’s fifth largest equity position: Liberty Global plc – Class C Ordinary Shares (NASDAQ:LBTYK), a $23.77 billion market cap international video, broadband internet, fixed-line telephony and mobile services provider. The stock fell 49.82% in the first six months of the year, and more than 50% year-to-date. As Lone Pine owns 21.2 million shares of Liberty Global plc – Class C Ordinary Shares (NASDAQ:LBTYK), worth about $865 million by the end of Q1, which accounted for roughly 3.75% of its total portfolio, the impact on its overall results cannot be overlooked.

Once again, it was not only Mr. Mandel’s fund that took this hit. Boykin Curry’s Eagle Capital Management owns about 30.36 million shares of Liberty Global plc – Class C Ordinary Shares (NASDAQ:LBTYK), which account for more than 5% of its Q1 total equity portfolio.

The third company in this list is Dollar General Corp. (NYSE:DG), which fell 4.91% over the first half of 2014, and 8.57% year-to-date. The fund last declared ownership of 10.34 million shares of this $16.7 billion market cap discount retailer, which accounted for 2.5% of its total equity portfolio.

Other funds that saw Dollar General Corp. (NYSE:DG) decline with a certain degree of concern are Tiger Global Management Llc, which owns about 7.89 million shares, and Eric W. Mandelblatt’s Soroban Capital Partners, which held 6.75 million shares by the end of Q1. Despite this steep tumble, bulls are back at Dollar General Corp. (NYSE:DG) now, purchasing November 57.50 calls for $2.75, and selling November 62.50 calls for $1.30. “If both halves of the trade are new, the strategy was a bullish call spread with the potential to earn 245 percent from the stock rallying to $62.50 or higher on expiration,” OptionMonster explains.

* This figure corresponds to Lone Pine’s long-only funds. Its long-short equity funds were off by 1%-3%.

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
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

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!