Lone Pine Capital LLC is a major fund based out of Greenwich that offers its services to pooled investment vehicles, profit sharing plans and pension plans. The fund employs a long and short strategy for making investments in the global public equity markets, with a heavy inclination for information technology stocks, which account for 37% of its 13F holdings.
During the September quarter, the fund made big movements in a number of stocks including eBay Inc. (NASDAQ:EBAY), Paypal Holdings Inc (NASDAQ:PYPL), Priceline Group Inc. (NASDAQ:PCLN), Expedia Inc (NASDAQ:EXPE) and Electronic Arts Inc (NASDAQ:EA). Let’s take a closer look.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
For the quarter ended on 30th September, 2016, Lone Pine Capital initiated a new stake in eBay Inc. (NASDAQ:EBAY) by buying 33.165 million shares, giving it a stake of $1.09 billion at the end of Q3. Although it isn’t growing as quickly as Amazon and it doesn’t have a cloud infrastructure on demand segment, eBay is solidly profitable, with analysts expecting the company to earn $2.09 per share next year. Given the expectation, eBay is one of the cheaper internet stocks on the market today. Of the 742 elite funds we track, 53 funds owned $3.71 billion of eBay Inc (NASDAQ:EBAY) and accounted for 6.40% of the float on September 30, versus 58 funds and $1.73 billion respectively on June 30.
While it may have initiated a stake in eBay, Lone Pine headed for the exits on eBay spin-off Paypal Holdings Inc (NASDAQ:PYPL) by selling all of its 11 million share position during the third quarter in the online finance giant. Although it is unclear why Lone Pine cut its position, Paypal isn’t exactly alone in the on-line finance space, with fintech startup Stripe recently reportedly raising $150 million at a $9.2 billion valuation. The emergence of competitors could cut into Paypal’s growth. The number of elite funds with holdings in Paypal Holdings Inc (NASDAQ:PYPL) fell by 10 quarter-over-quarter to 74 at the end of September.