Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman

Published May 11, 2021 at 10:22 am EDT Updated September 7, 2026 at 12:56 pm EDT

In this article we will take a look at the best tech and dividend stocks to buy according to billionaire Chase Coleman.

Chase Coleman’s journey into financial management and investment started after he graduated in 1997 and was hired by Tiger Management founder and legendary investor Julian Robertson. After closing his hedge fund in 2000, Robertson gave Coleman $25 million, which was the foundation Tiger Global. The fund since grown into a huge, successful investment firm that manages a portfolio worth $39.03 billion.

Tiger Global Investments invests in public equity through publicly-listed companies and private equity. The hedge fund has averaged a 21% annual return for the last 20 years. In Q4 2020 the fund returned 25.56% to its investors.

Best Tech Stocks in Coleman’s Portfolio

Some notable stock picks of Chase Coleman based on his hedge fund’s Q4’20 portfolio include Facebook, Inc. (NASDAQ: FB) and Uber Technologies, Inc. (NYSE: UBER). The tiger cub also has a $4.5 billion stake in Chinese internet giant JD.com, Inc. (NASDAQ: JD).

Coleman is also bullish on Salesforce.com, inc. (NYSE: CRM), Microsoft Corporation (NASDAQ: MSFT), and Adobe Inc. (NASDAQ: ADBE).

Microsoft Corporation shares have returned 35% over the last 12 months. MSFT is currently trading in the red after media reports suggested the U.S. officials are still considering ending the $10 billion JEDI cloud contract it awarded to Microsoft in 2019. The contract was challenged by Amazon (NASDAQ:AMZN). Last month, Amazon cheered a major legal win after a federal judge rejected motions by the Defense Department and Microsoft Corp. to dismiss Amazon’s complaints against the contract. Still, Microsoft has plenty of growth catalysts, including its foray into gaming, content and strong growth in Azure. Microsoft recently gave an upbeat guidance for fiscal fourth quarter. The company expects its Productivity and Business revenue to total $13.8 billion – $14.05 billion, compared to the consensus estimate of $13.63 billion. MSFT is one of the best tech stocks to buy according to Chase Colman.

Adobe Inc., in which Coleman has an $83 million stake, is also one of the best tech stocks to buy. The company remains popular with digital content creators thanks to its impressive portfolio of solutions. Some widely used examples include the popular Adobe Photoshop and Lightroom. Latest developments highlight Adobe Inc.’s desire to venture into other opportunities. Adobe shares are up over 30% in the last 12 months. Adobe is trending after the company posted a record Q1 revenue at $3.91 billion, up 27% from the previous year and beating the estimates by $150 million. Digital media sales in the period jumped 32% on a year-over-year basis to $2.86 billion. Because of its long-term growth potential, Adobe is one of the best tech stocks to buy now according to Chase Colman’s portfolio.

Another technology stocks in Coleman’s portfolio is Salesforce (NYSE: CRM). The stock is up about 17% in the last 12 months. Coleman owns 2,288,700 shares of the company as of the end of the fourth quarter, worth $509.30 million. Bank of America recently named Salesforce among its top software picks. The firm believes that Salesforce has a “long runway” of organic growth fueled by “front office digital transformation” in the enterprise world. The firm has a Buy rating for Salesforce with a $275 price target. Long-term growth potential makes CRM one of the best tech stocks to buy now.

But Coleman prefers to diversify his portfolio and has several stocks that pay decent dividends. In this article we will take a look at some of the best tech and dividend stocks that Coleman is piling into based on his Q4 portfolio.

Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman

Coleman is an exception in an industry that is reeling from losses. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

Let’s discuss the best tech and dividend stocks to buy according to billionaire Chase Coleman. Some of these stocks are pure tech plays. Some tech stocks offer decent dividend yields. We also included some non-tech stocks in Coleman’s portfolio that are good dividend investments.

Best Tech and Dividend Stocks

10. Mastercard Incorporated (NYSE: MA)

Dividend Yield: 0.46%
No. of hedge Fund Holders: 154

Mastercard Incorporated (NYSE: MA) has strongly positioned itself as one of the leading payments providers across the globe. Its scale of operations and profitability easily makes it one of the best tech and dividend stocks in Coleman’s portfolio. The Mastercard New Payments Index recently revealed that 93% of consumers favor new payment methods such as cryptocurrencies, biometrics, and even QR codes.

Mastercard ranks 10th in the list of best tech and dividend stocks to buy according to Chase Coleman.

In January, Bernstein initiated a coverage on Mastercard Incorporated and rated the stock as “Outperform” and gave price target of $380.

In its Q4 2020 investor letter, Bretton Fund spoke about Visa Inc. (NYSE:V) and Mastercard Inc (NYSE:MA) stocks. 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 Inc. and Mastercard Incorporated 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%.”

9. Visa Inc. (NYSE: V)

Dividend Yield: 0.55%
No. of hedge Fund Holders: 166

Visa Inc. is a global payments provider that facilitates electronic transactions worldwide through its Visa-branded cards. The company recently announced a partnership with Airbnb, Inc. (NASDAQ: ABNB) that aims to make it easier for Airbnb hosts to receive funds faster. The feature will only be available in specific markets, and it will leverage the card payment company’s push payments platform called Visa Direct, which transacts in real-time. Visa Direct will allow eligible Airbnb, Inc. hosts to move their money conveniently from Airbnb to their bank accounts.

Visa ranks 9th in the list of best tech and dividend stocks to buy according to Chase Coleman.

Visa Inc. revealed that it generated $5.7 billion revenue in the first quarter of its fiscal year 2021 after a 6% decline from the previous quarter. The company’s net income for the same quarterly period was $3.1 billion or $1.42 per share.

Wedgewood Partners, in their Q1 2021 investor letter, mentioned Visa Inc. (NYSE: V). Here is what Wedgewood Partners has to say about Visa Inc. in its letter:

“Visa payment volume recovered along with consumer spending habits, finishing up +5% during the December quarter; but it skewed heavily toward online purchases, particularly with debit. Historically, Visa Inc. has had a meaningful portion of its volume derived from higher-yielding credit card spending related to cross-border travel and entertainment (T&E). As many countries maintain closed borders, Visa Inc.’s cross-border T&E segment has stayed depressed. However, we expect this business will rebound as borders inevitably reopen to COVID-19 vaccinated populations. In the meantime, we trimmed Visa to help fund a reestablished position in Booking Holdings, which should disproportionately benefit from the aforementioned reopening as well.”

8. Intuit Inc. (NASDAQ: INTU)

Dividend Yield: 0.57%
No. of hedge Fund Holders: 68

Intuit Inc. (NASDAQ: INTU) is a finance software developer based in the U.S. The stock ranks 8th in the list of best tech and dividend stocks to buy according to Chase Coleman.

Some of the company’s latest developments include the integration of ProConnectwith Practice Ignition. The latter is a payment management software, while the former is a professional tax preparation software. The partnership will facilitate the automation of administrative tasks to facilitate better workflow, especially for tax professionals. Intuit ranks 8th in our list of best tech and dividend stocks to buy according to Chase Coleman.

Like Microsoft Corporation, Salesforce and Adobe Inc., Intuit is one of the best tech plays with organic growth potential.

In its Q3 2020 investor letter, L1 Capital International Fund highlighted a few stocks and Intuit Inc. (NASDAQ:INTU) is one of them. Here is what L1 Capital International Fund said:

“Intuit epitomises the consistency, predictability and longevity of growth we seek in high quality businesses.

Intuit currently operates through 2 main divisions:

Software for financial and business management as well as integrated payroll solutions, merchant payment processing solutions, and financing for small businesses in the US and key global markets; and

Do‑it‑yourself and assisted income tax preparation software products and services sold in the U.S. and Canada.

Intuit also provides personal financial software and services through its Mint and Turbo products and has announced the acquisition of Credit Karma for US$7.1 billion which will significantly expand its personal finance capabilities, creating a third leg to Intuit’s growth stool.

Intuit’s tax capabilities also include software and services for professional accountants in the United States and Canada.

Intuit has made 5 “big bets” which extend across its divisions and drive its operating strategy and growth profile:

Utilisation of Artificial Intelligence (AI) and customer insight (based on unique data) to make products simpler and to increase the speed of product enhancements – many of Intuit’s products are “do it for myself” applications and AI can facilitate self‑help and ease of use.

Connecting people to experts – QuickBooks Live, TurboTax Live and Mint Live enable customers to speak to independent experts to solve their issues, increasing the number of customers, engagement levels, and revenue per customer.

Facilitating “smart money decisions” by connecting customers with financial offerings that save them money – there are now 22 million registered users of Turbo and this division will be significantly expanded through Credit Karma’s over 100 million members (37 million monthly active users) once the acquisition completes.

Becoming “the source of truth for a business”, not just “the source of truth for your books” – Intuit aims to assist small business customers get paid fast, manage capital, pay employees and grow in an omnichannel world. Intuit has unique capabilities through the integrated QuickBooks software, Payroll, Payments and QuickBooks Cash bank account, facilitating payments ($65 billion charge volume) and optimising cashflow management.

Disrupt the market for accounting software for businesses with 10 to 100 employees – QuickBooks’ traditional strength lies with smaller businesses but QuickBooks Advanced expands the product’s capabilities to fully service larger businesses at a very competitive price point, albeit multiples of the standard QuickBooks price.

These “big bets” support consistent, predictable growth in all of Intuit’s key businesses:[Read the complete letter here]

7. Microsoft Corporation (NASDAQ: MSFT)

Dividend Yield: 0.89%
No. of hedge Fund Holders: 154

Microsoft Corporation ranks 7th in our list of the best tech and dividend stocks to buy according to Chase Colman.

Some of the latest developments involving Microsoft Corporation include its latest partnership program with the Malaysian government. It plans to invest $1 billion in the country in the next five years. The partnership will involve creating the region’s first data center with the help of some government agencies. Microsoft’s investment in Malaysia also aims to help millions of citizens to gain digital skills by 2023.

Microsoft Corporation is currently engaged in a tug of war regarding the $10 billion JEDI contract it won from the US Department of Defense. The contract was challenged by Amazon.

Baron Opportunity Fund, in their Q1 2021 investor letter, mentioned Microsoft Corporation (NASDAQ: MSFT) and analyzed the company Azure business, the competitor of Amazon AWS. Here is what Baron Opportunity Fund has to say about Microsoft Corporation in its letter:

“Microsoft Corporation is a cloud-software Titan, and also discussed further in the Review and Outlook section above and the Top Purchases section below. Microsoft Corporation was a top contributor in the period because it trades at reasonable FCF and earnings valuations, has cloud and digital transformation tailwinds at its back, and reported an excellent December quarter, beating Street expectations by a wide margin. Microsoft’s results were strong across the board, with accelerating trends in Azure cloud computing and solid growth in its overall commercial cloud businesses. Azure accelerated to 48% constant-currency (“cc”) revenue growth from 47% the quarter before, and commercial cloud grew 32% cc, ahead of Street estimates at 26%. Microsoft’s profitability was also a significant beat, with operating income coming it at $17.9 billion, almost $3 billion ahead of Street estimates. Microsoft’s March quarter guidance also outstripped Street projections, with revenue growth of 16.5% versus the Street at 10.6%, and operating income over $1 billion ahead. CEO Satya Nadella began the earnings call with this proclamation: “What we are witnessing is the dawn of a second wave of digital transformation sweeping every company and every industry. Digital capability is key to both resilience and growth … Microsoft Corporation is powering this shift with the world’s largest and most comprehensive cloud platform … I’m energized by our increasing momentum and the expanding opportunity fueled by the structural change brought about by the rapid adoption of digital technology.””

6. Farmland Partners Inc. (NYSE: FPI)

Dividend Yield: 1.48%
No. of hedge Fund Holders: 8

Farmland Partners Inc. (NYSE: FPI) is a real estate firm that invests in high-quality farmland across the U.S with the goal of using that land to produce food, fuel, and animal feed in line with global demand. Some of the company’s highlights in 2020 include finalizing three acquisitions collectively valued at $1.4 million. It also sold off seven assets collectively worth $20.5 million, and the disposal generated a $3.2 million total gain with an IRR of roughly 11%.

FPI ranks 6th in our list of best dividend stocks to buy according to Chase Coleman. This holding also shows that Coleman isn’t just relying on major tech stocks like Facebook, Inc. and Uber Technologies, Inc., JD.com, Inc., etc..

Farmland Partners Inc. board of directors declared a quarterly dividend of $0.05 per share in February 2021 for the quarter ended December 31, 2020.

5. Apollo Global Management, Inc. (NYSE: APO)

Dividend Yield: 3.67%
No. of hedge Fund Holders: 30

Apollo Global Management, Inc. (NYSE: APO) is an investment firm that focuses on alternative types of investments. This focus is its ticket into Chase Coleman’s list of best tech and dividend stocks. The company recently announced plans to acquire Verizon Communications Inc. (NYSE: VZ) for $5 billion. The acquisition will include Yahoo and AOL.

Verizon will maintain 10% ownership in the media business which will operate as Yahoo after the deal is finalized. Verizon bought out AOL in 2015 for $4.4 billion Yahoo for $4.5 billion in 2017.

Apollo Global Management, Inc. portfolio ballooned to $461.1 billion in Q1 as its private equity assets continued to gain value. The company’s total revenue in Q1 grew to $2.29 billion from $1.30 billion revenue in the previous quarter. It also performed significantly better than the $1.47 billion Q1 2020 revenue. Management fees in Q1 2021 amounted to $457.2 million, a notable gain from the $446.9 million earned from management fees in the previous quarter.

In its Q3 2020 investor letter, RiverPark spoke about Blackstone Group Inc (NYSE:BX) and Apollo Global Management Inc. (NYSE:APO) stocks. Here is what RiverPark said:

“Blackstone & Apollo: Our alternative asset managers BX and APO were top detractors for the quarter as their results were affected by the COVID shutdowns, which have delayed the selling of assets and the realization of performance fees. Both companies (as well as our third alternative asset manager KKR) continue to generate consistently strong fee-related earnings (BX’s and APO’s fee-related earnings increased 28% and 9%, respectively, in the second quarter) and grow their assets under management (AUM) at impressive rates (BX’s and APO’s fee-generating AUM increased 12% and 45%, respectively, year over year).

While both face a temporary slowdown in investment realizations and near-term mark-to-market headwinds from the current crisis, most of their capital is long-dated or even permanent, most of their fees, which are high-margin and recurring, are not sensitive to the market, and both have billions of dollars of capital available to invest ($156 billion and $47 billion at the end of 2Q for Blackstone and Apollo, respectively). We continue to view BX and APO as two of the better risk-reward holdings in our portfolio, offering substantially better-than-average growth and cash flow fundamentals, and world class management teams, as well as dividend yields of 2.8% and 4.2%, respectively.”

4. Adobe Inc. (NASDAQ: ADBE)

Value: $83,770,000
No. of hedge Fund Holders: 114

Adobe Inc. is a U.S-based company with a solid reputation for its solutions used in animation, photography, graphics, and multimedia. However, its operations now include the provision of software for digital marketing management.

Adobe recently secured a partnership through which it will integrate its digital commerce platform with the ShopRunner e-commerce expedited delivery platform owned by FedEx Corporation (NYSE: FDX). The integration will make it possible for sellers on Adobe’s platform to provide free two-day shipping and other logistics perks. Adobe will also provide extra sales data to sellers who select FedEx, allowing them to streamline their operations.

Adobe Inc. generated $3.91 billion revenue in the first quarter of its fiscal 2021 after a 26% YoY gain. Its GAAP diluted earnings per share for the same period was $2.61, while the Non-GAAP EPS was $3.14. Creative revenue soared to $2.38 billion during the quarterly period, while the digital media segment generated $2.86 billion in revenue. The document cloud segment’s revenue figure for the same period was $480 million, which was 37% higher YoY.

Palm Capital, in their Q1 2021 investor letter, mentioned Adobe Inc. (NASDAQ: ADBE). Here is what Palm Capital has to say about Adobe Inc. in their letter:

“Adobe has a near-monopoly in content creation software with dominant applications including Photoshop, Lightroom and Illustrator that are critical in the lives of creative professionals. These applications are not only the best in the industry but also have high switching costs as it takes designers many years to become adept at using them. This investment of time is a sunk cost and makes it costly for designers to switch to an alternative. Additionally, as most creative professionals use Adobe’s suite of products it also has a network effect advantage – creative professionals use it because most other creative professionals do.

This creates stickiness of revenue, the visibility of which is enhanced by the fact that more than 90% of Adobe’s overall revenue is subscription-based and a large portion of this is paid in advance.

As Adobe’s programs have already been developed and they are now largely distributing this over the internet, the company’s gross profit margins are a towering 85%.

Adobe also has great economics. It is capital light. This means that it does not need physical assets like machinery, property, or stock to operate. As its assets are intangible, it does not need to take on debt to finance them. And its marginal cost of serving additional customers is minimal. The company is highly cash generative, not only because some of its revenue is received upfront, but also because it pays a large portion of salaries with shares and share options. This is evident from its balance sheet – it has had a large net cash position for seven of the past ten years. Furthermore, investments in its intangible assets are expensed rather than capitalized resulting in a low tax burden relative to typical capital-intensive businesses.

Finally, Adobe has lots of room for growth. The shift to digital creates a strong underpin for demand growth over the long term. And Adobe’s switching costs give it the power to grow revenue by increasing prices. Additionally, the subscription model is growing Adobe’s market in several ways. Firstly, it makes it affordable for small businesses, opening a new market to Adobe. Secondly, by freeing up IT capex and fixed costs, the model also makes it more affordable for large businesses, incentivizing them to take on pricier options. Thirdly, as the company is not updating its products that were sold under the licence model, the subscription model is beginning to capture many non-compliant users.

Over the next ten years, we expect Adobe’s sales to more than double and its free cashflow margin to expand to almost 40%.

These characteristics make Adobe an exceptional business and it is one half of the reason we have been invested for nearly three years.

This example as well as our examples of the aggregators earlier illustrates the impact that the internet has had in not only creating more profitable, less capital-intense businesses but also in allowing businesses to grow to much larger sizes at a much faster pace than before. It partly explains the pace with which new businesses are reaching $100bn valuations whether on public or private markets.”

3. salesforce.com, inc. (NYSE: CRM)

Value: $509,304,000
No. of hedge Fund Holders: 97

salesforce.com, inc. (NYSE: CRM) is a leading provider of CRM services and solutions. CRM has remained one of the most lucrative segments in the last decade and should remain that way as the roots of digitization continue to spread.

Salesforce generated $5.42 billion in quarterly revenue in Q3 2020, a 20% gain compared to the revenue figure reported in Q3 2019. The performance favored a revenue guidance revision for FY21 to $21.11 billion from $21.10 billion. It also raised its Q1 FY22 revenue guidance to$5.715 billion from the previous $5.680 Billion.

Oakmark Equity and Income Fund, in its Q1 2021 investor letter, mentioned salesforce.com, inc. (NYSE: CRM). Here is what Oakmark Equity and Income Fund has to say about salesforce.com, inc. in its letter:

“Salesforce was the final new portfolio addition. The company is executing a tried-and-true strategy in the software space of buying young, best-of-breed software companies and then driving these products into their massive installed base. Companies like Tableau, ExactTarget and Mulesoft have considerably more reach in the hands of Salesforce than they could have achieved as standalone companies. However, when Salesforce announced a deal to buy Slack Technologies, the market reduced Salesforce’s pre-announcement market capitalization by roughly $40 billion, effectively offering investors the opportunity to get Slack for free. We believe management should be given the benefit of the doubt. Slack has the potential to be a game-changing technology with a huge addressable market, and management’s track record on acquisitions has been superb. We estimate that the company’s shares now trade at a material discount to industry peer Microsoft, despite showing nearly twice the growth, giving investors the chance to own a top-tier software company at a bottom-tier multiple.”

2. Sea Limited (NYSE: SE)

Value: $1,836,535,000
No. of hedge Fund Holders: 115

Sea Limited (NYSE: SE) is a Singapore-based holding company that is relatively new considering that it has only been around since 2019. The company owns the Garena, SeaMoney and Shopee brands.

Sea Limited’s Q4 2020 financial report revealed that the company earned $1.6 billion revenue, delivering an impressive 102% revenue growth YoY. Its Q4 gross profit was $533.7 million. The company’s full year 2020 revenue was $4.4 billion, representing a 101% gain compared to the revenue figure that Sea Limited reported for FY 2019.

The company’s impressive revenue figures in FY20 were mainly generated by Garena and Shopee. The former experienced an 111% YoY increase in bookings which generated $1 billion in Q4 alone and $3.2 billion throughout the year.

Credit Suisse raised its price target for Sea Limited earlier this year. The adjustment was based on the expectation that gaming revenue will grow at a moderate pace, thanks to Free Fire popularity. Credit Suisse adjusted its price target for the stock from $225 to $285.

In its Q4 2020 investor letter, Hayden Capital mentioned Sea Limited (NYSE: SE). Here is what Hayden Capital has to say about Sea Limited in its letter:

“Sea Ltd (SE): When I wrote our Q4 2019 letter about Shopee launching a Brazilian business, it seemed very few investors or competitors knew or cared.

A year ago, I wrote: “This is the first test for the ecommerce marketplace outside of its Southeast Asia home base. Will the platform’s fun and addicting features overcome a lack of local knowledge and presence? It’s hard to predict consumer behavior and how accepting users will be to a platform – especially one that’s a foreign culture and 10,000 miles away. The only way to know is to experiment and watch the results closely.

Empirically though, it seems that what consumers find entertaining in Asia, generally translates well to Brazil (and Shopee really is as much an entertainment platform, as an ecommerce one).

For example, just look at the top 10 free apps in Brazil. Two are utility messaging apps, so we’ll ignore those (WhatsApp and
Facebook Messenger). But among the remaining eight apps, they’re all entertainment based and overwhelmingly Asian. Four are from China (Kwai, TikTok, VStatus, TikTok Lite), two from Singapore (Free Fire and Shopee, both Sea Ltd apps), and one from the US (Instagram). The commonality is that all these apps are experts at creating addictive habits, as evidenced by their personalized recommendations, avg usage time, number of logins per day per user, etc.” (LINK)

I distinctly remember having conversations with several Brazilian hedge funds as recently as last summer who were investors in Sea Ltd. When the topic of Brazil came up, many of them didn’t even know Shopee was operating in their own backyard!

Part of this stems from the fact that Shopee tends to enter markets with a bottoms-up approach. Instead of going after urban, high disposable income users first (of which these hedge fund professionals were certainly part of), they tend to initially go after those with only a few hundred or thousand USD of annual disposable income. These users tend to reside outside of major cities, have fewer choices for recreational pastime (thus turning to gaming, short-form videos, or online shopping for entertainment), can’t afford “branded” items and thus are willing to take a chance on cheaper (but still good quality) un-branded goods, and are willing to wait several weeks for it to be shipped from Asian factories.

Anyone who has studied Pinduoduo (Nasdaq: PDD) in China, will recognize this strategy and just how large of a market these consumers can be. As Shopee gains popularity in a market, they will then start to slowly move “up-market”, and cater to more urban and higher-income consumers. They’ve already followed this exact strategy in Southeast Asia, and this is the point they’ve reached in Brazil over the past year.

Shopee made its first big social push last fall, hiring over a dozen influencers with 1M+ followers to promote Shopee’s Black Friday sale (LINK). In addition, they also released their first Brazilian TV commercial last year.

It seems these initiatives are working. Shopee now consistently ranks in Brazil’s top 5 apps (while sister app Free Fire, is also the #1 grossing app). In addition, Shopee also moved Pine Kyaw (LINK), one of their key lieutenants in Vietnam who successfully helped Shopee fight off competitors (Tiki, Lazada, Sendo), to Brazil last May.

For the past year, the company has insisted publicly that the Brazil initiative is still a “test” initiated by the cross-border team. While this may have been true at first, it’s clear this is no longer a “test”, but rather a strategic focus for Shopee and posed to be the next battleground. It’s likely the company has chosen to remain tight-lipped so as to not tip off competitors, while they quietly “position the troops” to prepare for a larger assault.

For example, Shopee is also starting to allow local sellers to join the platform and list their local inventory (LINK). By definition, this is no longer a cross-border initiative (i.e. allowing their Southeast Asian sellers to sell to Brazilian consumers, and then shipping the goods directly from Asia. This is the model Aliexpress follows.).

This is the start of a localized marketplace. And similar to their early days in Southeast Asia, the goal is to reach the “tipping point” at which the marketplace becomes self-sustainable (this concept is discussed in our Q1 2019 letter; LINK). The weapons of choice in reaching critical mass: social media influencers to drive rust & awareness, free shipping & discounts to acquire / convert these new customers, and gamification of shopping to drive continued engagement, habit building, and repeat purchases.

Given all of this, and the strong (but early) traction in the local Shopee Brazil marketplace, investors need to keep an eye on this development. It is the smallest GMV contribution among Shopee’s countries currently, but a large inherent call option in the valuation. Something that so far, seems greatly underappreciated. I suspect at some point in the near future, Shopee’s management team will disclose more on the initiative, and at which point investors will be surprised by how Shopee managed to quietly build one of the largest marketplaces in Brazil.”

1. Zoom Video Communications, Inc. (NASDAQ: ZM)

Value: $ 487,418,000
No. of hedge Fund Holders: 59

Zoom Video Communications, Inc. (NASDAQ: ZM) is one of the best tech stocks to buy in Chase Colman’s Q4 portfolio.

The company generated $882.5 million in revenue in Q4 2020 with an impressive 369% YoY gain. Its revenue for the entire fiscal year 2020 was $2.6 billion, representing a 326% YoY gain. Zoom’s GAAP net income from operations in Q4 2020 was $256.1 million, a 2327% gain compared to Q4 2019. Its operations GAAP income for the full year was $659.8 million, a whopping 5,097% gain YoY.

Zoom Video Communications, Inc. has added new features to ensure more growth such as Immersive View, which enables virtual backgrounds. It also launched a $100 million Zoom Apps fund whose aim is to facilitate further development of the platform, including developing more apps and better integration.

You can also take a peek at Top 15 Dividend Stocks With Upside Potential and 10 Blue Chip Dividend Stocks Hedge Funds Are Buying.

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