Billionaire Chase Coleman’s Top Five Mega-Cap Picks

Chase Coleman, the founder of Tiger Global Management, is one of the so-called “Tiger Cubs” who began his career at Julian Robertson’s Tiger Management before starting out on his own in 2000. Coleman was an early investor in some of the biggest technology companies today. At Insider Monkey, we backtested a portfolio of five of his largest positions in mega-cap stocks (with a market cap of at least $50 billion) and calculated the returns from them. These stocks returned 0.89% on an average each month from 2002-2012. During the same period S&P 500 Index returned just 0.44%. His mega cap stock picks outperformed the market by 45 basis points per month, or 5.4% per year. Having said that, in this article, we’ll analyse some of Chase Coleman’s top mega-cap picks.

We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively the most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs (see more details).

Priceline Group Inc. (NASDAQ:PCLN) was the top holding of Tiger Global Management at the end of the third quarter. The fund bought an additional 170,669 shares taking its total investment in the stock to 920,669 shares worth $1.35 billion. Priceline is the world’s biggest online travel company (OTA) and its stock has performed strongly over the last few years. Among other hedge funds that we track, Barry Rosenstein‘s JANA Partners initiated a new position buying 105,409 shares while Two Sigma Investments held 88,419 shares of Priceline Group Inc (NASDAQ:PCLN) at the end of September. The stock has returned 21% year-to-date and is currently trading very close to its 52-week high of $1,600. For its latest quarter, the company reported good results with earnings of $31.18 per share beating estimates by $1.86. The number of funds from our database owning shares of Priceline Group Inc. (NASDAQ:PCLN) went up to 98 from 85 during the third quarter, while the total value of their holdings advanced to $8.18 billion from $7.24 billion.