5 Stock Picks of Late Julian Robertson’s Tiger Management

4. AutoZone, Inc. (NYSE:AZO)

Number of Hedge Fund Holders: 38

Julian Robertson’s Tiger Management’s Holdings: $12,895,000

Percentage of Julian Robertson’s Tiger Management’s Portfolio: 5.68%

AutoZone, Inc. (NYSE:AZO) is a Tennessee-based retailer of automotive parts and accessories.

Julian Robertson’s Tiger Management initiated a position in AutoZone, Inc. (NYSE:AZO) during Q2 2022. The hedge fund bought 6,000 shares at an average quarterly share price of $2056.6.

Experts believe that under the current economic uncertainty, AutoZone, Inc. (NYSE:AZO) stock provides a defensive position to investors due to the nature of its business. The sale of auto parts is non-discretionary, and its demand is relatively inelastic. This would aid AutoZone, Inc. (NYSE:AZO) in passing on the burden of higher costs to the end customer. Furthermore, AutoZone, Inc. (NYSE:AZO) will continue to gain market share from its highly fragmented do-it-for-me (DIFM) competitors.

Here’s what Weitz Investment Management said about AutoZone, Inc. (NYSE:AZO) in its Q2 2022 investor letter:

“Given a nearly fully invested portfolio, we elected to trim or sell some holdings in favor of increasing our stakes in several more compelling opportunities. We continued trimming Markel on strength and sold our remaining AutoZone (NYSE:AZO) shares during the quarter. Over our roughly 18 months of ownership, AutoZone was a strong contributor to results, and we would gladly own this business again. At current prices, however, we believe its defensive characteristics are well-appreciated.”