In this article, we discuss the 10 latest stock picks of legendary investor Julian Robertson’s Tiger Management.
Julian Robertson is often called the pioneer of the modern hedge fund industry who helped it grow into a financial powerhouse from 1980 onwards. Robertson is the chief of Tiger Management, a hedge fund that closed at the turn of the millennium but still continues to operate through investments in public equity and seeding new funds. At the end of the third quarter of 2021, the fund had a portfolio value of $540 million with the top holdings concentrated in the technology and financial sectors. Robertson has a personal net worth of close to $5 billion and was born and raised in North Carolina.
Tiger Management is one of the most successful hedge funds of the past few decades, returning more than 31% to investors between 1980 and 1998. When it closed in 2000, it was still returning close to 26% despite the dotcom crash. Latest data shows that the portfolio value of the fund decreased by about $32 million between June and September as it made new purchases in 16 stocks, additional purchases in 5, sold out of 13, and reduced holdings in 6 equities. The top ten holdings comprise over 80% of the portfolio.
Robertson is famous for deploying a “long-short” strategy that focuses on investments in the best and the worst companies in the world to profit from the gap that exists between them. Investors eager to pick the brain of the legendary investor for the coming year should check his latest holdings. Some of the top stocks in the portfolio of Tiger Management at the end of September included Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB), among others discussed in detail below.
Our Methodology
The companies listed below were taken from the investment portfolio of Tiger Management at the end of the third quarter of 2021.
All of these stocks are new additions in Tiger Management’s portfolio as of the third quarter.
The analyst ratings and business fundamentals of each company are also discussed to provide readers with some additional context for their investment choices.
The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
Latest Stock Picks of Legendary Investor Julian Robertson’s Tiger Management
10. Salesforce.com, Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 119
Salesforce.com, Inc. (NYSE:CRM) markets enterprise cloud computing solutions. Latest securities filings reveal that Tiger Management owned 11,100 shares in Salesforce.com, Inc. (NYSE:CRM) at the end of the third quarter of 2021 worth $3 million.
Morgan Stanley analyst Keith Weiss recently maintained an Overweight rating on Salesforce.com, Inc. (NYSE:CRM) stock with a price target of $360, backing the firm to accelerate free cash flow growth in the coming years.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Salesforce.com, Inc. (NYSE:CRM) with 13.9 million shares worth more than $3.7 billion.
Just like Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB), Salesforce.com, Inc. (NYSE:CRM) is one of the stocks that elite investors are buying.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Salesforce.com, Inc. (NYSE:CRM) was one of them. Here is what the fund said:
“We added to our software-as-a-service (SaaS) exposure with the initiation of SaaS leader salesforce.com, which develops software for customer relationship management (we added Workday, which enterprise resource planning applications, last quarter). Saleforce.com is well-positioned in the most attractive end markets in software and will benefit from secular drivers such as remote work and the digital transformation. Salesforce.com is a sustainability leader as well, with a commitment to carbon-neutral cloud, toward which it has set a goal of 100% renewable energy for global operations by fiscal year 2022. The company has a strong focus on equality, in terms of equal rights, pay, education and opportunity. As a data company it has been leading on workforce disclosures and seeks to have 50% of its U.S. workforce made up of underrepresented groups by 2024.”
9. Roblox Corporation (NYSE:RBLX)
Number of Hedge Fund Holders: 50
Roblox Corporation (NYSE:RBLX) owns and runs an online entertainment platform. Tiger Management bought 36,308 shares in Roblox Corporation (NYSE:RBLX) in the third quarter, worth $2.7 million, representing 0.50% of the portfolio.
A report published by The Wall Street Journal in mid-November suggests that Roblox Corporation (NYSE:RBLX) is in the process of bringing educational video games into schools across the country as it ramps up work on the “Metaverse” concept.
At the end of the third quarter of 2021, 50 hedge funds in the database of Insider Monkey held stakes worth $3.5 billion in Roblox Corporation (NYSE:RBLX), up from 49 in the previous quarter worth $4.9 billion.
In its Q2 2021 investor letter, Guardian Fund, an asset management firm, highlighted a few stocks and Roblox Corporation (NYSE:RBLX) was one of them. Here is what the fund said:
“The wonder-tale stories of children’s books show us that there are infinite possibilities of stories and worlds. The metaverse, the idea that describes the shared 3D spaces in a virtual universe, is enabling people to create fiction. Over the past six months, we initiated a new investment in Roblox. The firm was founded in 1989 by David Baszucki and Erik Kassel when they programmed a physics lab where students could study how cars would crash.
Today, Roblox has become a leading platform with a mission to build a human co-experience that enables billions of users to play, learn, and build friendships in the metaverse. Recent advances in cloud computing, computing devices, and machine learning, enable the materialization of the metaverse. Take what we have in virtual reality today and fast-forward a few decades. Humans will be able to experience unimaginable things and in a couple of millennia virtual economies are likely to become bigger than the physical trade on planet Earth.
Over the first quarter of 2021, Roblox reported 140% revenue growth, 42.1 million daily active users, and 9.7 billion engaged hours. The opportunity for this platform is massive.”
8. Oracle Corporation (NYSE:ORCL)
Number of Hedge Fund Holders: 56
Oracle Corporation (NYSE:ORCL) provides software products and services. Securities filings show that Tiger Management owned 21,800 shares in Oracle Corporation (NYSE:ORCL) at the end of the third quarter of 2021 worth $1.8 million, representing 0.35% of the portfolio.
In October, Oracle Corporation (NYSE:ORCL) had announced that it would be opening 14 new cloud regions across the world as it seeks to meet growing demand for the cloud services of the company. The firm already operates from around 30 cloud regions spread over 14 countries.
At the end of the third quarter of 2021, 56 hedge funds in the database of Insider Monkey held stakes worth $3.4 billion in Oracle Corporation (NYSE:ORCL), up from 55 in the preceding quarter worth $2.8 billion.
Hedge funds are loading up on tech stocks like Oracle, in addition to Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB).
Here is what Ariel Investments has to say about Oracle Corporation (NYSE:ORCL) in its Q1 2021 investor letter:
“A temporary factor might be a downturn in the high-yield bond market driving up LBO financing costs for the decline in 2021 GAAP revenue for Oracle Corporation (ORCL) due to a change in accounting methods. In all these examples, stock prices were driven well-below our calculations of intrinsic value. We invested in each company with good outcomes. Later, we will offer instances when this strategy is not successful.”
7. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 146
Mastercard Incorporated (NYSE:MA) is a payments technology company. Tiger Management added 7,100 new shares of MA to its portfolio in the third quarter, worth $2.4 million.
Mastercard Incorporated (NYSE:MA) has a decent dividend history and recently declared a quarterly dividend of $0.49 per share, an increase of over 11% from the previous dividend of $0.44 per share. The forward yield was 0.62%.
Among the hedge funds being tracked by Insider Monkey, Virginia-based investment firm Akre Capital Management is a leading shareholder in Mastercard Incorporated (NYSE:MA) with 5.8 million shares worth more than $2 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE:MA) was one of them. Here is what the fund said:
“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”
6. Global-e Online Ltd. (NASDAQ:GLBE)
Number of Hedge Fund Holders: 22
Global-e Online Ltd. (NASDAQ:GLBE) operates in the cross-border ecommerce industry. Regulatory filings show that Tiger Management owned 14,200 shares in Global-e Online Ltd. (NASDAQ:GLBE) at the end of the third quarter of 2021 worth over $1 million, representing 0.18% of the portfolio.
Bank of America analyst Koji Ikeda recently initiated coverage of Global-e Online Ltd. (NASDAQ:GLBE) stock with a Buy rating and a price target of $80, noting the “large and growing” customer base of the firm in a bullish investor note.
At the end of the third quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Global-e Online Ltd. (NASDAQ:GLBE), up from 15 in the previous quarter worth $243 million.
Along with Microsoft Corporation (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOG), and Meta Platforms, Inc. (NASDAQ:FB), Global-e Online Ltd. (NASDAQ:GLBE) is one of the stocks attracting the attention of institutional investors.
5. Five Star Senior Living Inc. (NASDAQ:FVE)
Number of Hedge Fund Holders: 12
Five Star Senior Living Inc. (NASDAQ:FVE) owns and manages senior living communities across the United States. At the end of the third quarter of 2021, Tiger Management owned 198,110 shares in MFive Star Senior Living Inc. (NASDAQ:FVE) worth $868,000, representing 0.16% of the portfolio.
Five Star Senior Living Inc. (NASDAQ:FVE) recently announced that it is collaborating with Compass Community Living under which the latter is slated to assume dining service operations at the facilities of the former across the country.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm V3 Capital is a leading shareholder in Five Star Senior Living Inc. (NASDAQ:FVE) with 1.5 million shares worth more than $6.7 million.
4. Expedia Group, Inc. (NASDAQ:EXPE)
Number of Hedge Fund Holders: 78
Expedia Group, Inc. (NASDAQ:EXPE) operates as an online travel company. Tiger Management owned 18,900 shares in Expedia Group, Inc. (NASDAQ:EXPE) at the end of September 2021 worth $3 million, representing 0.57% of the portfolio of the fund.
Expedia Group, Inc. (NASDAQ: EXPE) posted earnings for the third quarter on November 4, reporting earnings per share of $3.53, smashing expectations by $1.77. The revenue over the period was $2.9 billion, up over 97% year-on-year.
At the end of the third quarter of 2021, 78 hedge funds in the database of Insider Monkey held stakes worth $6.4 billion in Expedia Group, Inc. (NASDAQ:EXPE), down from 87 in the previous quarter worth $5.9 billion.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Expedia Group, Inc. (NASDAQ:EXPE) was one of them. Here is what the fund said:
“Several of our better performers in the first quarter were purchased while their business models were under stress from COVID restrictions or the macro environment the pandemic created. What gave us confidence in purchasing Expedia were the actions the company took to extend out their balance sheets until travel resumed. It should benefit as a broader vaccination rollout prompts cruise lines to resume operations and consumers to start traveling again and are positioned to deliver better margins and gain pricing power as the economy normalizes due to the cost controls implemented during the downturn.”
3. DLocal Limited (NASDAQ:DLO)
Number of Hedge Fund Holders: 19
DLocal Limited (NASDAQ:DLO) owns and runs a payments platform. The hedge fund of Julian Robertson owned 25,600 shares of DLocal Limited (NASDAQ:DLO) at the end of the third quarter of 2021 worth more than $1.3 million, representing 0.25% of the total portfolio.
DLocal Limited (NASDAQ:DLO) stock has had a topsy-turvy ride so far this year, debuting at the market in June and rallying close to 250% in the next three months before falling over 50% in the time since then.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Tiger Global Management LLC is a leading shareholder in DLocal Limited (NASDAQ:DLO) with 2.6 million shares worth more than $141 million.
2. Bilibili Inc. (NASDAQ:BILI)
Number of Hedge Fund Holders: 35
Bilibili Inc. (NASDAQ:BILI) provides online entertainment services. According to regulatory filings, Tiger Management owned 3,400 shares in Bilibili Inc. (NASDAQ:BILI) at the end of September 2021 worth $225,000, representing 0.04% of the portfolio.
On November 18, investment advisory Citi maintained a Buy rating on Bilibili Inc. (NASDAQ:BILI) stock with a price target of $120. Brian Dapeng Gong, an analyst at the firm, issued the ratings update.
At the end of the third quarter of 2021, 35 hedge funds in the database of Insider Monkey held stakes worth $1.5 billion in Bilibili Inc. (NASDAQ:BILI), down from 47 in the preceding quarter worth $2 billion.
In its Q4 2020 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Bilibili Inc. (NASDAQ:BILI) was one of them. Here is what the fund said:
“Bilibili (ticker:BILI) similarly reported a blast Q3 2020. Bilibili reached average MAU of 197m with high 7.6% pay ratio, showing strong user growth and high engagement. Additionally, the high margin advertisement segment showed exceptionally strong trend, growing 126% yoy. Though surprising to many, I think it is a natural outcome of building an ever-more valuable user generated contents platform. If it is not by ads, I believe these values created by Bilibili will accrue to it in other ways. One interesting data point is that management mentioned the average age of new cohorts are still around 20, indicating it is still in its early stage of a long growth runway. I am happy to see this position played out like how I envisioned in original thesis and will be excited to continue to follow its progress.”
1. Agora, Inc. (NASDAQ:API)
Number of Hedge Fund Holders: 11
Agora, Inc. (NASDAQ:API) is an application software firm focusing on real-time engagement platforms. Latest data shows that Tiger Management bought a new stake in the company in the third quarter, worth $296,000.
In earnings results for the third quarter, posted on November 15, Agora, Inc. (NASDAQ:API) reported a revenue of $45 million, up 46% compared to the revenue over the same period last year and beating estimates by $5.3 million.
At the end of the third quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $354 million in Agora, Inc. (NASDAQ:API), down from 17 in the preceding quarter worth $564 million.
In its Q3 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Agora, Inc. (NASDAQ:API) was one of them. Here is what the fund said:
“As witnessed in the past quarter, the government intervention in Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited Agora (ticker: API) as we estimated that it has 25+% of evaporating revenue tied to online education use cases, but the management seemed to be evasive about the potential impact.”
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Disclosure. None. 10 Latest Stock Picks of Legendary Investor Julian Robertson’s Tiger Management is originally published on Insider Monkey.
