Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

First Solar, Inc. (FSLR), Groupon Inc (GRPN) Among Tiger Cub Philippe Laffont’s Small Cap Picks

Page 1 of 2

We track 13F filings from hedge funds and other notable investors as part of our work developing investment strategies; one of our findings so far has been that the most popular small cap stocks among hedge funds generate an average excess return of 18 percentage points per year (learn more about our small cap strategy). We think that this is because institutional investors and the financial media pay less attention to most small cap stocks (though some tech companies in this range are widely followed) and so hedge funds or more likely to uncover an overvalued or undervalued stock. Here are our brief thoughts on five stocks with market capitalizations between $1 billion and $5 billion which Tiger Cub Philippe Laffont’s Coatue Management owned at the end of December (or see more stocks the fund reported owning):


Coatue reported a position of 4.5 million shares in Informatica Corporation (NASDAQ:INFA), a provider of enterprise software which helps businesses integrate and manage data. The company’s stock price is down 34% in the last year, and earnings have been performing poorly as well- they fell 27% in the fourth quarter of 2012 versus a year earlier. The sell-side expects net income to improve, but at a forward P/E of 21 we don’t think that Informatica is a good value. Billionaire and fellow Tiger Cub Stephen Mandel’s Lone Pine Capital initiated a position of 1.9 million shares during Q4 (check out Mandel’s stock picks).

Laffont and his team disclosed ownership of 1.9 million shares of The Hain Celestial Group, Inc. (NASDAQ:HAIN), whose packaged food products focus on natural and organic foods. These are two strong segments of the food market, and buoyed by recent acquisitions the company has been reporting strong growth in its financials. However, the stock is expensive- it trades at 30 times trailing earnings- and Hain is a popular short target. Hain Celestial is one of Carl Icahn’s picks, with the billionaire activist investor holding 7.2 million shares at the end of December (find Icahn’s favorite stocks).

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

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 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!