Billionaire Stephen Mandel Takes a Big Position in FleetCor Technologies, Inc. (FLT)

Editor’s Note: Featured tickers: FleetCor Technologies, Inc. (NYSE:FLT), Visa Inc (NYSE:V), Mastercard Inc (NYSE:MA)

Stephen Mandel’s net worth has been estimated at $1.7 billion. He manages Lone Pine Capital Management. His investment philosophy is ‘bottom-up’; fundamentally-based stock picks. The fund has averaged a return of about 11% a year since launching in 1999, but lost a great deal of value during the 2008 financial crisis, which it has since recovered.

Recently the fund filed a 13G form with the SEC, disclosing a substantial purchase in FleetCor Technologies, Inc. (NYSE:FLT). The fund bought 4,336,936 shares worth of the company’s common stock, worth over $370 million. We will now take a quick look at this new buy.


See the original form here.

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A quick look at FleetCor Technologies, Inc. (NYSE:FLT)

FleetCor Technologies, Inc. (NYSE:FLT) is a global provider of fuel cards as well as workforce payment products and services. Its clients include commercial fleets, major oil companies, petroleum marketers and government entities, and are located in North America, Latin America and Europe. The Company offers a range of direct and indirect customized payment programs to its clients and partners. FLT provides its customers with a product similar to a credit card, allowing the customer to purchase fuel, lodging and other products at participating retailers and other businesses.

The stock price of FLT has more than doubled over the past twelve months, to trade at $88.25 as of this writing. The company recently acquired fuel card business in Australia and New Zealand, as well as Telenav Mobile in the US. Quarterly earnings have been impressive, with total revenues for the first quarter of 2013 increasing 32% to $193.7 million, compared with $146.2 million in the corresponding quarter of the prior year. Net income for the first quarter 2013 rose 54% to $64.7 million, working out to $0.77 per diluted share, compared to $42.1 million, or $0.49 per diluted share for the prior year’s quarter.

Many analysts are bullish on the company, noting the similarity of its business model to successful financial services giants Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA), as well as looking favourably on the high level of insider ownership. CEO Ronald F. Clarke currently owns 5.5% of the shares at issue, so there are many indicators ardent FleetCor Technologies, Inc. (NYSE:FLT) investors will continue to watch.

Disclosure: none