Priceline.com Inc (PCLN), Google Inc (GOOG) Picks To Join The $1,000-Club From This Hedge Fund Manager

In the hedge fund world, Stephen Mandel is one of its most meteoric managers. His Lone Pine Capital has over $18 billion in assets under management, and his group of hedge funds returned over 20% net of fees in 2012. Because it’s important to track the activity of the best hedge funds, we’ll take a look at Mandel and Lone Pine’s top trio of stock picks from last quarter.

LONE PINE CAPITALAccording to the firm’s 13F filing with the SEC, Priceline.com Inc (NASDAQ:PCLN) was the hedgie’s No. 1 pick, with a $1.4 billion position, worth nearly 7% of his entire equity portfolio. Priceline continues to make its journey toward the vaunted $1,000 mark, and post-Kayak Software acquisition, the synergies should help it get there. Shares of Priceline.com Inc (NASDAQ:PCLN) are up 15.4% over the last three months, and still trade at decent valuation multiples (1.6 PEG, <20 P/E).

Cognizant Technology Solutions Corp (NASDAQ:CTSH), meanwhile, sits in the No. 2 spot of Stephen Mandel’s equity portfolio. A year ago, Mandel upped his stake in the IT services company by nearly 50%, and in Q3 2012, another 25%. It’s clear that he is confident that Cognizant can build off of its robust history, in which EPS has grown by nearly 25% a year over the past five years.

In third, we can’t forget Google Inc (NASDAQ:GOOG). Mandel actually made Google his No. 1 holding at the end of 2012, and at the conclusion of 2011, he upped his stake by almost 50%. The point is, that Stephen Mandel views Google as a long-term investment, and like Priceline, he likely thinks it can surpass $1,000 a share.

Interestingly, Google isn’t particularly expensive at current levels, with a price-to-book multiple near 3.6 and a forward P/E near 17.0x. It’s difficult to say just what future Mandel envisions for Google Inc (NASDAQ:GOOG), though we expect it’s founded upon the belief that a dominance in search will continue. Whether or not it’s Google Glass or self-driving cars that carry the company into 2020 and beyond is up for grabs, but it’s important that Google at least has that innovation on the table. That’s a fact Apple cannot say for itself, for example.

In a similar light, Priceline.com Inc (NASDAQ:PCLN)’s potential for international expansion is far and away the best in its industry, and the addition of Kayak (who was a formidable travel player in its own right) only boost its prospects. The $1,000 club is hard to join, but assuming no stock splits are in the near future, it’s possible that both Priceline and Google Inc (NASDAQ:GOOG) could make the cut. That’d probably make 2013-2014 a very good period for Stephen Mandel and Lone Pine.

Disclosure: none

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

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

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

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!