Tiger Global Management, which counts billionaire and Tiger Cub Chase Coleman among its partners, filed its 13F for the first quarter of 2013 in mid May. While these filings disclose many long equity holdings as of the end of the previous quarter (March in this case) and so are a little out of date, we have found that it’s still possible to use them to develop investment strategies: by our reckoning, the most popular small cap stocks among hedge funds earn an average excess return of 18 percentage points per year (learn more about our small cap strategy). We can also examine the most recent 13F to find individual funds’ top picks in a number of areas. Read on for our thoughts on Tiger Global’s five largest tech holdings and compare them to previous filings.
One of the fund’s largest holdings overall at the end of March was its 65 million shares of Groupon Inc (NASDAQ:GRPN). Still barely profitable on a trailing basis- and still down 41% from where it was trading a year ago- the daily deals company has rallied somewhat following the departure of CEO Andrew Mason. Following this increase in price, Groupon Inc (NASDAQ:GRPN) now trades at 25 times consensus earnings for 2014 and is therefore quite dependent on future earnings growth. Fellow Tiger Cub Philippe Laffont’s Coatue Management had been buying Groupon Inc (NASDAQ:GRPN) during the fourth quarter of 2012 (see Laffont’s stock picks).
Tiger Global cut its stake in Priceline.com Inc (NASDAQ:PCLN) but still owned 380,000 shares of the stock at the end of the quarter. Priceline.com Inc (NASDAQ:PCLN) has been a popular pick among Tiger Cub funds; for example, billionaire Stephen Mandel’s Lone Pine Capital had over $1 billion invested in the stock at the beginning of this year (find Mandel’s favorite stocks). In the first quarter of 2013, the company grew its revenue by 26% versus a year earlier with net income rising even more quickly. Markets are already accounting for high growth going forward, though with the forward P/E dipping to 18 Priceline.com Inc (NASDAQ:PCLN) might be worth a look anyway.