Editor’s Note: A previous version of this article erroneously attributed the founding of Tiger Global Management to Julian Robertson, who founded the unrelated hedge fund Tiger Management. Charles Coleman, who once worked for Robertson, founded Tiger Global Management. The author and the Fool regret the error.
Every quarter, many money managers have to disclose what they’ve bought and sold, via “13F” filings. Their latest moves can shine a bright light on smart stock picks.
Today let’s look at Tiger Global Management. The company’s reportable stock portfolio totaled $5.4 billion in value as of Dec. 31 and contained just a few dozen stocks. Indeed, the top 10 holdings make up about 62% of the overall portfolio’s value.
So what does Tiger Global’s latest quarterly 13F filing tell us? Here are a few interesting details.
The biggest new holdings are Starz (NASDAQ:STRZA) and FleetCor Technologies, Inc. (NYSE:FLT). Other new holdings of interest include First Solar, Inc. (NASDAQ:FSLR). The company has struggled, along with many peers, but bulls have high hopes for its projects in emerging markets such as India and note that it’s one of the lowest-cost installers and has a stronger balance sheet than its rivals. My colleague Travis Hoium thinks the company would do well to shift some attention from serving utilities to residential and commercial work, and that it might even change its financial structure.
Among holdings in which Tiger Global Management increased its stake were 3D Systems Corporation (NYSE:DDD) and Pitney Bowes Inc. (NYSE:PBI). Three-dimensional-printing specialist 3D Systems recently disappointed investors with a strong quarter that justwasn’t as strong as many had hoped. Some worry about cutbacks in military or industrial spending, but there’s also a promising consumer market. Meanwhile, the recent price dropspells opportunity to some.
Long known for its postage-meter business, Pitney Bowes yields a whopping 11.5%. It has been challenged by the growth of electronic communications over mailed communications. On the plus side, though, Pitney Bowes is involved in other less-threatened and higher-margin businesses as well, such as providing geocoding software to Facebook Inc (NASDAQ:FB) and others. The company recently posted estimate-topping quarterly results, and its single-digit P/E ratio is enticing, but it does carry some risks and considerable debt, and its hefty dividend may end up reduced.