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

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 Click to see monthly returns in table format!

Lists

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

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

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!