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 Click to see monthly returns in table format!

Lists

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

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!