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MakeMyTrip Limited (MMYT): Tiger Global Management Trims Exposure to a Long-Term Position

Chase Coleman‘s Tiger Global Management has disclosed reducing its stake in MakeMyTrip Limited (NASDAQ:MMYT). In a new filing with the Securities and Exchange Commission, Tiger Global Management showed that it owns 5.08 million shares of the company, which represents 12.2% of the company. Previously, the fund held 7.18 million shares of the company, as disclosed in the latest 13F.


Chase Coleman is a former employee of the legendary investor Julian Robertson‘s Tiger Management. Mr. Coleman has a great track record with his team posting gains of around 44% since inception till 2007. However, the firm lost around 26% during the financial crisis in 2008 and inched up by 1% the following year. However, this year has not been so great for the firm. In September, Tiger Global, a hedge fund managed by Feroz Dewan and owned by Tiger Global Management was crushed by its equity holdings, its gross loss amounting to 9%. According to the fund’s latest 13F filings, Tiger Global’s top equity stake was Twenty-First Century Fox Inc (NASDAQ:FOXA), which declined by 2.9%. Its other holdings performed worse, one of the biggest contributors to the fund’s weak performance being Zillow Inc (NASDAQ:Z), which dropped by 19% in September significantly reducing Tiger Global’s $450 million investment.

Nevertheless, Tiger Global has made some bullish moves in September. The fund initiated a stake in Bitauto Hldg Ltd (ADR) (NYSE:BITA), which contains 6.57 million shares, equal to 14.9% of the company’s stock and boosted its position in Autohome Inc (ADR) (NYSE:ATHM) to 6.74 million class A shares from 290,900 shares held previously.

In MakeMyTrip Limited (NASDAQ:MMYT), Tiger Global initiated a stake during the third quarter of 2010, soon after the company went public initially holding 4.13 million shares. The stock gained around 11% since its IPO, while over the last year, its return amounts to 80%. Moreover, during the second quarter, Daniel Gold‘s QVT Financial initiated a position in MakeMyTrip, and revealed ownership of 1.43 million shares in its latest 13F filing.

MakeMyTrip Limited (NASDAQ:MMYT) is an India-based online travel company. Tiger Global cut its stake after the company reported its financial results for the second quarter of fiscal 2015, which sent the stock higher. MakeMyTrip posted a 27% annual increase in revenue, which amounted to around $60.5 million and its net loss narrowed to $0.11 per share from $0.20 per share a year ago. The company added that its results for the first six months of 2015 made them more optimistic regarding reaching the target for the full year. MakeMyTrip Limited (NASDAQ:MMYT) expects now a revenue growth between 28% and 30%, which is between $136-$138 million.

In this way, Tiger Global cut its stake to get some profits from a long-term investment, since it has been holding 7.18 million shares revealed in its latest 13F for several years. Other investors are also optimistic regarding MakeMyTrip Limited (NASDAQ:MMYT)’s prospects since the company has been posting growth in its revenue numbers and expects them to go up further together with the growth of the online travel sector in India. Analysts have a consensus rating of ‘Overweight’ for the stock, with the average target price amounting to over $40 per share.

Disclosure: none

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