Tiger Global’s Tech Stock Picks Include Apple Inc. (AAPL)

Page 1 of 2

One of the “Tiger Cub” hedge funds, so named because one or more founders previously worked under Julian Robertson at Tiger Management, is Tiger Global Management. This fund tends to be overweight technology stocks, as well as services stocks with a connection to technology or the Internet. Read on for our quick take on the fund’s five largest technology stocks on its most recent 13F filing or see the full list of Tiger Global’s stock picks.

TIGER GLOBAL MANAGEMENT LLC

Tiger Global owned 1.3 million shares of Apple Inc. (NASDAQ:AAPL), which made that the largest position by market value in the 13F portfolio. Apple Inc. (NASDAQ:AAPL) had been the most popular stock among hedge funds in the third quarter of 2012 (see the rest of the top ten), and that was before the recent drop in its stock price. It is now at a trailing P/E of 12, which seems incredibly low for a market leader in growing industries. We do expect Apple Inc. (NASDAQ:AAPL)’s recent high earnings growth rates to slow- but not to zero, which is what the market is apparently pricing in.

The fund’s second largest reported position was its close to 24 million shares of Yandex NV (NASDAQ:YNDX), a Russian search engine. Yandex can be considered a growth stock: in its most recent quarterly report, revenue was up 41% from the third quarter of 2011 and this pulled net income up 34%. Investors expect much more growth, given that the stock trades at 30 times trailing earnings. Wall Street analysts are also optimistic, with a forward P/E of 20 and a five-year PEG ratio of 0.9. It might be worth considering further, but we’d have to be quite convinced that the company will meet these growth targets to buy such an expensive stock.

Tiger Global also had a large position in Google Inc (NASDAQ:GOOG). Google is in a more challenging environment: its recent purchase of Motorola Mobility Holdings has helped its positioning in the smartphone market, but has delivered a (hopefully one-time) hit to earnings. The stock now carries a trailing P/E multiple of 22, meaning that Google will have to grow its net income substantially over the next several years to justify its current valuation let alone prove undervalued. We think it’s best to wait for another quarter or two of financial results to come in- if the growth rates do look strong enough, and the price hasn’t already reacted too much by then, it could be a buy. Billionaire- and fellow Tiger Cub- Stephen Mandel’s Lone Pine Capital reported a position of 1.1 million shares at the end of the third quarter (find Mandel’s favorite stocks).

Page 1 of 2
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. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

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!