Tiger Global Management’s Top Q4 Picks and Pans: Priceline (PCLN) and Twenty-First Century Fox (FOXA) Among the Favorites

February has been witness of hundreds of hedge fund 13F filings for the fourth quarter of 2013. In these forms funds disclose many of their long equity positions as of the end of December. We have found that the most popular small cap stocks among hedge funds outperformed the market by 18 percentage points even though we started measuring the returns a couple of weeks after 13Fs have been made public. It can also be productive to treat individual 13Fs as free recommendations from fund managers- not necessarily to be followed, but to be considered briefly and then researched further if they seem appealing.

In this article, I will succinctly analyze Chase Coleman and Feroz Dewan’s Tiger Global Management Llc’s equity portfolio. This fundamentally-oriented services-and-technology-focused hedge fund has an equity portfolio worth almost $6 billion. It tends to seek for ten-year investment opportunities, mainly in the global Internet and technology sectors.

TIGER GLOBAL MANAGEMENT LLC

Over 2013’s fourth quarter, Tiger Global increased its stakes in every one of its top ten holdings. In Priceline.com Inc (NASDAQ:PCLN), after already upping its stake by 20% over the third quarter, it reasserted its confidence in the company by increasing its bets by 23%. It now holds 708,000 shares, worth more than $907 million, which comprise more than 10% of its total equity portfolio. These moves are quite comprehensible, given Priceline.com Inc (NASDAQ:PCLN)’s industry leading margins and returns, great growth prospects, institutional backup, balanced debt levels and reasonable valuation.

On the second place is Twenty-First Century Fox Inc (NASDAQ:FOXA). The fund had started a position of 15.93 million shares in the media behemoth in Q3, and augmented it by 16% over the fourth quarter. Coleman and Dewan’s fund currently holds 18.59 million shares of the company, which account for 8% of its total equity portfolio’s value. A cheap valuation, decent margins and returns, and a small dividend yield make of Twenty-First Century Fox Inc (NASDAQ:FOXA) a worthy long-term investment, even in spite of its in-line-with-the-market EPS growth projections (18%-19% for the next five years).

Dollar General Corp. (NYSE:DG) also saw some action from Tiger Global. Over the last quarter of 2013, the fund boosted its position in the retailer by 31%, to 7.90 million shares (almost 6% of its total holdings). This company has been an analyst favorite for a while now. But not only researchers see value in this company. The fund must have also noticed the growth potential that Dollar General Corp. (NYSE:DG) holds and seems to have bet on its strong fundamentals and prospects going forward.

The fourth runner-up is TransDigm Group Incorporated (NYSE:TDG), a $9.2 billion market cap global designer, producer and supplier of aircraft components for use on commercial and military aircrafts in service. Tiger Global owns 2.62 million shares of the company, which makes it one of its top three hedge-fund shareholders.

I would also like to highlight Tiger Global´s new position at Restoration Hardware Holdings Inc (NYSE:RH). The fund acquired 1,817,935 shares during the fourth quarter, which account for approximately 1.5% of its total portfolio.

On the opposite, Coleman and Dewan’s fund 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. These holdings now occupy the 15th and 19th places in our list, correspondingly.

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Activist Alex Denner’s Sarissa Capital Bets on Ariad Pharmaceuticals Inc (ARIA), Quest Diagnostics Inc (DGX) & Others

The Largest Holdings of Marcato Capital’s Include Lear Corp (LEA), United Rentals (URI) and Others

Billionaire Marc Lasry’s Top Stock Picks: Houghton Mifflin Harcourt Co. (HMHC), Dynegy Inc. (DYN) & Others

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

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

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

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!