Priceline Group Inc (PCLN), Mastercard Inc (MA), Baidu Inc (ADR) (BIDU): Stephen Mandel’s Bottom-Up Picks

Baidu Inc (ADR) (NASDAQ:BIDU) was the second largest long term holding of Lone Pine, despite a 14% decrease in its stake during the fourth quarter. The holding amassed 7.03 million shares valued at $1.6 billion. Baidu is a Chinese-language Internet search provider (ISP) and serves three types of online participants, which include users, customers and Baidu Union Members. The company had its debut on the U.S stock exchange in August 2005, but found its way in Lone Pine’s portfolio only during the third quarter of 2013, around the same time as Mastercard Inc (NYSE:MA). At the time, Mandel purchased some 5.29 million shares valued at $820.78 million. The stock has risen nearly 51% since then. Another significant investor of Baidu Inc (ADR) (NASDAQ:BIDU) is Philippe Laffont‘s Coatue Management owning 2.95 million shares valued at $672.69 million.

Although the company failed to meet analysts expectations in the fourth quarter as revenues of RMB 14.05 billion ($2.64 billion) missed estimates by RMB70 million and EPS of RMB9.97 ($1.61) marginally beat estimates by RMB0.02, it has strong future growth prospects. Baidu Inc (ADR) (NASDAQ:BIDU)’s spending spree on sales and marketing is to continue throughout 2015  in order to support the company’s key gateways and build its closed-loop offering. This makes the company an ideal long term investment candidate. Moreover, Baidu’s Chief Executive Officer, Robin Li has recently announced his company’s intentions to possibly unveil its self-driving car this year.

By adding some 669,000 shares of Priceline Group Inc (NASDAQ:PCLN), Mandel took the company’s stake to about 1.40 million shares valued at $1.59 billion at the end of the fourth quarter. This made the online travel company third largest holding of Lone Pine. Back in the first quarter of 2011, Mandel added the company to his portfolio by purchasing roughly 358,200 shares valued at $181.4 million. During these 3 years, Priceline Group Inc (NASDAQ:PCLN) has appreciated nearly 152%. The company’s fourth quarter EPS of $10.85 was $0.75 higher than the estimates and revenues of $1.84 billion came in $40 million higher than expected.

Among the billionaires that we track, six had investments totaling $2.70 billion in the travel company at the end of 2014. David Tepper of Appaloosa Management was one of them with about 316,900 shares valued at $361.3 million.

Disclosure: none