In this article, we discuss the top 10 stock picks of Julian Robertson’s Tiger Management.
Julian Robertson is considered a trailblazer of the hedge fund industry as the founder of Tiger Management. Having established the investment firm in 1980 with $8 million in start-up capital, Robertson turned this amount into $22 million by 1988. One of the most successful hedge funds in the world, Tiger Management boasts an outstanding hedge fund record, returning 31.7% annually and beating S&P 500’s 12.7% annual return between the period of 1980 and 1998. Although it closed to outside investors in 2000, the fund still continues to operate through investments in public equity.
Julian Robertson is famous for employing a long-short strategy that focuses on investments in some of the best performing, and some of the worst-performing companies in the world, in order to profit from the gap that exists between them. Robertson himself said, “mandate is to find the 200 best companies in the world and invest in them, and find the 200 worst companies in the world and go short on them.” He remained active in the hedge fund industry even after closing Tiger Management, providing financial help and mentorship to aspiring and future hedge fund managers.
As of the fourth quarter of 2021, Tiger Management supervises over $509.5 million in its investment portfolio, with the technology sector occupying most of the fund’s portfolio value. According to Tiger Management’s Q4 13F portfolio, some of the top stocks in the fund’s portfolio include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and Micron Technology (NASDAQ:MU), among others discussed in more detail below.
Our Methodology
The following list consists of some of the top stocks present in the portfolio of Tiger Management at the end of the fourth quarter of 2021.
10 Stock Picks of Julian Robertson’s Tiger Management
10. Ooma, Inc. (NYSE:OOMA)
Tiger Management’s Stake Value: $15.1 million
Percentage of Tiger Management’s 13F Portfolio: 2.97%
Number of Hedge Fund Holders: 15
Ooma, Inc. (NYSE:OOMA) is a Sunnyvale, California-based telecommunications company that offers over-the-phone, landline quality calling, and high-speed internet connection. Ooma creates new communication experiences for small businesses and consumers. Its SaaS platform acts as a communication hub, offering cloud-based telephony, home security, and other connected services.
According to the 13F filings for the fourth quarter, Tiger Management holds 740,854 shares of Ooma, Inc. (NYSE:OOMA), valued at $15.1 million. These shares represent 2.97% of the fund’s overall portfolio.
Douglas Granat’s Trigran Investments is the biggest Ooma, Inc. (NYSE:OOMA) stakeholder as of the fourth quarter of 2021, with over 1.7 million shares worth $36.7 million. Overall, 15 hedge funds were bullish on Ooma, Inc. (NYSE:OOMA) as of Q4, with total stakes amounting to almost $147.9 million.
9. Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS)
Tiger Management’s Stake Value: $17.8 million
Percentage of Tiger Management’s 13F Portfolio: 3.49%
Number of Hedge Fund Holders: 16
Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS), also known as Volaris, is a Mexico-based airline passenger transportation company that operates as an ultra-low-cost airline carrier serving Mexico, the United States, Central and South America.
Despite a strong year, the shares remain attractively priced considering the company’s prospects. According to Buzz Franchise Brands’ CEO, Kevin Wilson, Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS) is poised for years of top-line double-digit growth. He sees VLRS’ revenue to increase more than 25% compared to 2019 and expects VLRS’ 2022 revenue to increase at least 25% compared to 2021.
In the fourth quarter of 2021, Tiger Management owned 990,161 shares in Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE: VLRS) worth $17.8 million. These shares represented 3.49% of the investment portfolio of the hedge fund. Overall, 16 out of the 924 funds tracked by Insider Monkey held stakes in the company, compared to 13 funds a quarter earlier.
Among the hedge funds being tracked by Insider Monkey, Michael Moriarty’s Teewinot Capital Advisers is the leading shareholder in Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (NYSE:VLRS), with over 6.12 million shares worth more than $110.1 million.
8. Flywire Corporation (NASDAQ:FLYW)
Tiger Management’s Stake Value: $24.3 million
Percentage of Tiger Management’s 13F Portfolio: 4.76%
Number of Hedge Fund Holders: 15
Flywire Corporation (NASDAQ:FLYW) is a Massachusetts-based global payments-enablement and software company known for facilitating global payment processing for international students.
In its portfolio for the fourth quarter of 2021, Tiger Management holds over 637,246 shares of Flywire Corporation (NASDAQ:FLYW), worth $24.3 million, representing 4.76% of the fund’s value. Of the 924 elite funds tracked by Insider Monkey, 15 were long Flywire Corporation (NASDAQ:FLYW) at the end of December, up from 8 in the previous quarter.
Among the hedge funds being tracked by Insider Monkey, Alex Sacerdote of Whale Rock Capital Management is a leading shareholder in Flywire Corporation (NASDAQ:FLYW) with 3.03 million shares worth more than $115.3 million.
7. QUALCOMM Incorporated (NASDAQ:QCOM)
Tiger Management’s Stake Value: $29.9 million
Percentage of Tiger Management’s 13F Portfolio: 5.86%
Number of Hedge Fund Holders: 75
QUALCOMM Incorporated (NASDAQ:QCOM) is a California-based multinational corporation that creates semiconductors, software and peripherals, alongside providing services related to wireless technology.
In its portfolio for the fourth quarter of 2021, Tiger Management holds 163,500 shares of QUALCOMM Incorporated (NASDAQ:QCOM), worth $29.9 million, representing 5.86% of the fund’s value. Of the 924 elite funds tracked by Insider Monkey, 75 were long QUALCOMM Incorporated (NASDAQ:QCOMM) at the end of September, up from 70 in the previous quarter.
Among the hedge funds being tracked by Insider Monkey, Panayotis Takis Sparaggis’ Alkeon Capital Management is a leading shareholder in QUALCOMM Incorporated (NASDAQ:QCOM) with 5.3 million shares worth more than $970.1 million.
Similar to Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB) and Micron Technology (NASDAQ:MU), QUALCOMM Incorporated (NASDAQ:QCOM) is a notable stock to invest in.
In its Q1 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and QUALCOMM Incorporated (NASDAQ:QCOM) was one of them. Here is what the fund said:
“Long position Qualcomm Inc. were among the top detractors from performance. QUALCOMM Incorporated (NASDAQ:QCOM) is a leading semiconductor company with strong positions in telecommunications end markets that position the company as a primary beneficiary of the innovative 5G network standard roll out. Qualcomm is acknowledged as having the best technology specs for 5G chip sets as evidenced by signing up all 75 major OEMs including Apple. Additionally, beyond handsets, QUALCOMM Incorporated (NASDAQ:QCOM) has meaningful growth drivers, including the Internet of Things, automobiles, industrials and gaming that provide the company with potential for generating increased earnings.
While Qualcomm was a notable positive contributor to the portfolio’s absolute and relative returns in 2020, during the first quarter, the share price declined and the position detracted from performance. Market demand for chips has been strong; however, QUALCOMM Incorporated (NASDAQ:QCOM) hasn’t been able to fully exploit the demand as it is capacity constrained. Expectations were high for QUALCOMM Incorporated (NASDAQ:QCOM) and while the quarter generally exceeded consensus estimates and forward estimates did rise, the street was anticipating a stronger positive surprise. We believe the production capacity constraints should abate in the second half of this year.”
6. Adaptive Biotechnologies Corporation (NASDAQ:ADPT)
Tiger Management’s Stake Value: $31.3 million
Percentage of Tiger Management’s 13F Portfolio: 6.14%
Number of Hedge Fund Holders: 22
Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is a commercial-stage biotechnology company that focuses on translating the genetic language of the adaptive immune system into clinical immune-driven products to diagnose and treat diseases.
As of Q4 2021, Tiger Management holds over 1,115,411 shares of Adaptive Biotechnologies Corporation (NASDAQ:ADPT), amounting to more than $31.3 million in worth and representing 6.14% of the investment firm’s portfolio.
Of the 924 elite funds tracked by Insider Monkey, 22 were long Adaptive Biotechnologies Corporation (NASDAQ:ADPT) at the end of December, down from 25 in the second quarter of 2021. Andreas Halvorsen of Viking Global is the leading stakeholder of the company.
Much like Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB) and Micron Technology (NASDAQ:MU), Adaptive Biotechnologies Corporation (NASDAQ:ADPT) is one of the top stocks in Tiger Management’s portfolio.
5. Micron Technology (NASDAQ:MU)
Tiger Management’s Stake Value: $41.5 million
Percentage of Tiger Management’s 13F Portfolio: 8.15%
Number of Hedge Fund Holders: 83
Micron Technology (NASDAQ:MU) is an Idaho-based producer of computer memory and computer data storage solutions, including dynamic random-access memory, flash memory, and USB flash drives.
Julian Robertson’s Tiger Management owned 446,300 shares in Micron Technology (NASDAQ:MU) at the end of December 2021, worth $41.6 million, representing 8.15% of the portfolio of the fund.
Marshall Wace LLP is the biggest stakeholder of Micron Technology (NASDAQ:MU) as of the end of the fourth quarter, according to the data tracked by Insider Monkey. Overall, 83 funds were bullish on Micron Technology (NASDAQ:MU) by the end of the December quarter, compared to 63 in the previous quarter.
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
4. SLM Corporation (NASDAQ:SLM)
Tiger Management’s Stake Value: $60.8 million
Percentage of Tiger Management’s 13F Portfolio: 10.17%
Number of Hedge Fund Holders: 18
SLM Corporation (NASDAQ:SLM), commonly referred to as Sallie Mae, is an American publicly traded consumer banking corporation that offers college planning resources, tools, information, and loans.
Tiger Management owns over 3,089,655 shares in SLM Corporation (NASDAQ:SLM) worth more than $60.7 million, representing 11.92% of the fund’s investment portfolio. Overall, 18 funds were bullish on SLM Corporation (NASDAQ:SLM) by the end of the December quarter, versus the 27 funds in the previous quarter.
Among the hedge funds being tracked by Insider Monkey, Jeffrey Ubben of ValueAct Capital is the leading stakeholder in SLM Corporation (NASDAQ:SLM) at the end of the fourth quarter of 2021, with 14,601,031 shares worth approximately $287.2 million.
3. Meta Platforms, Inc. (NASDAQ:FB)
Tiger Management’s Stake Value: $52.3 million
Percentage of Tiger Management’s 13F Portfolio: 10.25%
Number of Hedge Fund Holders: 224
Julian Robertson’s Tiger Management owns 155,400 Meta Platforms, Inc. (NASDAQ:FB) shares, worth $52.3 million as of the fourth quarter, representing 10.25% of the firm’s portfolio.
In the fourth quarter, 224 hedge funds in the database of 924 elite funds tracked by Insider Monkey were long Meta Platforms, Inc. (NASDAQ:FB), holding total stakes worth $31.8 billion. Ken Fisher’s Fisher Asset Management is the most notable Meta Platforms, Inc. (NASDAQ:FB) stakeholder as of December 2021, with 9.6 million shares worth $3.2 billion.
Jefferies Group mentioned Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. Here is what the firm said:
“While still early, FB is in the process of building the platforms that will ultimately support the development the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”
Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…” (Click here to see the full text)
2. Microsoft Corporation (NASDAQ:MSFT)
Tiger Management’s Stake Value: $64.9 million
Percentage of Tiger Management’s 13F Portfolio: 12.73%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based tech giant that provides software, support, and related services.
As of the end of the fourth quarter, 262 hedge funds tracked by Insider Monkey reported owning stakes in Microsoft Corporation (NASDAQ:MSFT). The total worth of these stakes is $75.7 billion. This shows the hedge fund sentiment is positive for the technology company as 250 funds had stakes in the company in the previous quarter, with a total worth of $65.9 billion.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 26.8 million shares worth more than $9 billion.
In its Q3 2021 investor letter, Polen Capital discussed its stance on Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“After modest Portfolio activity during the second quarter of 2021, activity increased during the third quarter. We would broadly characterize the various trades into two objectives: 1) managing risk, and 2) managing valuation. In both cases, we aimed to maintain the Portfolio’s growth profile. In aggregate, we believe we were able to increase expected earnings growth while reducing risk and the overall portfolio valuation… We also trimmed Microsoft, which had grown to nearly 10% of the Portfolio. At an 8% weighting, it still represents one of our largest positions.”
1. Blackstone Inc. (NYSE:BX)
Tiger Management’s Stake Value: $76.5 million
Percentage of Tiger Management’s 13F Portfolio: 15.02%
Number of Hedge Fund Holders: 62
Blackstone Inc. (NYSE:BX) is a leading global investment management company based in New York City that specializes in real estate, hedge funds, private equity, leveraged lending, senior debts, and rescue financing.
Julian Robertson’s Tiger Management owned 591,500 shares in Blackstone Inc. (NYSE:BX) at the end of December 2021, worth $76.5 million, representing 15.02% of the fund’s portfolio value.
John Allison’s Unio Capital is the biggest Blackstone Inc. (NYSE:BX) stakeholder from Q4 2021, with 117,333 shares worth $613.7 million. Overall, 62 hedge funds in the database of Insider Monkey were bullish on Blackstone Inc. (NYSE:BX) as of the end of the fourth quarter of 2021, with total stakes amounting to $3.1 billion.
Here is what Artisan Partners has to say about Blackstone Inc. (NYSE:BX) in its Q3 2021 investor letter:
“Among our top Q3 contributors were Blackstone. Investment stalwart Blackstone’s virtuous cycle is in full swing. Throughout Blackstone’s history, excellent investment performance and capital protection have allowed the firm to increase fundraising in existing verticals as well as launch new endeavors. Historically, less than 10% of assets under management mature in any given year, and that number should move lower with continued growth in perpetual capital vehicles. Blackstone’s A+ rated balance sheet and capital-light model are the backbone of its 85% of cash flow distribution policy via a variable quarterly dividend. In short, this is a long-duration fee stream and robust capital-raising engine.”
You can also take a look at Billionaire Stephen Mandel’s Top 10 Stock Picks and Tech Stock Portfolio: 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management.
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Disclosure. None. Top 10 Stock Picks of Julian Robertson’s Tiger Management is originally published on Insider Monkey.
