Tiger Global Management Cuts Its Exposure To TAL Education Group (XRS)

On Tuesday Feb. 25th, Chase Coleman and Feroz Dewan’s Tiger Global Management Llc reported a substantial decrease in its position at TAL Education Group (ADR) (NYSE:XRS). Over the past 15 days, the fund sold 2 million shares of the company for prices ranging from $23.99 per share to $24.99 per share. After the reported transactions, the fund holds 2.95 million class A shares, compared to 4.95 million, before these moves. Tiger’s activist stake amasses 4.3% of TAL Education’s Class A stock.

 

TIGER GLOBAL MANAGEMENT LLC

Through its latest move, Tiger Global reduced its position on TAL Education Group (ADR) (NYSE:XRS) -a Chinese K-12 after-school tutoring service provider with a market cap slightly under $2 billion-  by more than 40%. However, the sale should not be seen as a bearish signal from the fund, but rather like an attractive opportunity to make some profit. The company’s stock has jumped by about 175% over the past year, on the back of industry leading fundamentals and a cheap valuation. Moreover, trading at 40 times the company´s earnings, this stock might look slightly overvalued, but it is, in fact, cheap compared to the industry average of 103x P/E.

Finally, I would like to highlight that, despite the recent activity, Tiger Global continues to be the largest hedge-fund shareholder at TAL Education Group (ADR) (NYSE:XRS). Nonetheless, other major funds, including Robert Karr’s Joho Capital, Christopher Lyle’s Scge Management and Jim Simons’ Renaissance Technologies, also hold millionaire stakes in the company. In fact, these last two funds last declared having upped their bets on TAL Education Group (ADR) (NYSE:XRS).

Tiger Global Management is a fundamentally-oriented services-focused hedge fund with assets under management of approximately $8 billion. It tends to seek for ten-year investment opportunities, mainly in the global Internet and technology sectors. Managed by Chase Coleman and Feroz Dewan, two “youngsters,” it has returned 71% after fees in 2007. In fact, by the end of 2007 Tiger Global’s annualized return since inception was around 44%. Although 2008 and 2009 were tough years, Chase Coleman and his team are back on track, having returned 45% in 2011, 23% in 2012, and 14% in 2013.

A few days ago, we analyzed Tiger Global’s main holdings and latest moves. The fund had already reduced its stakes in two of its major holdings: Motorola Solutions Inc (NYSE:MSI) and Groupon Inc (NASDAQ:GRPN). It diminished its bets by 20% and 36%, respectively. On the opposite, it had reported increasing its participation in Priceline.com Inc (NASDAQ:PCLN), Twenty-First Century Fox Inc (NASDAQ:FOXA) and Dollar General Corp. (NYSE:DG).

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Starboard Sends Another Letter To Shareholders of Darden Restaurants Inc. (DRI)

Barry Rosenstein’s Jana Partners Trims Stake In QEP Resources (QEP)

Hedge Funds Are Betting Big on These Five Tech Stocks

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

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

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

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!