Tiger Legatus Capital was the fifth-best performing hedge fund in our database during Q2. It was founded on July 24, 2009 by its current Portfolio Manager, Jesse Sunhu Ro, a consumer-stock specialist. Before starting his own fund, Mr. Ro sharpened his investment philosophy at Viking Global Investors from 2004 to 2008, where he worked as a Portfolio Manager. He was in charge of a stand-alone long/short equity portfolio and has invested in a vast assortment of industries and regions. Prior to joining Viking Global Investors, Mr. Ro was an Investment Analyst at Axial Capital from 2002 to 2003. Prior to that, he worked at Bear Stearns & Co., where he had duties in two sectors under the Investment Banking Division: in the Technology and Merchant Banking Sectors. He holds a BS in Economics, magna cum laude, with a concentration in Finance from the Wharton School of the University of Pennsylvania. Jesse Ro’s ownership stake in Tiger Legatus Management is more than 75%.
New York City-based Tiger Legatus Capital usually invests in public equities and uses detailed analysis to determine the most favorable investment opportunities. Even though it invests in public equities around the world, its main focus is in the U.S and on companies with market caps north of $1 billion. Currently, the fund’s portfolio is valued at $333.82 million, while its assets under management are unknown. As of the end of Q2, Tiger Legatus Capital disclosed holding positions in six companies with market caps above $1 billion, which returned an impressive 23.3% during that quarter, placing the fund fifth among those that we track. The fund’s most recent overall returns weren’t available, but we managed to find those from a couple of years back when the fund was listed among Barron’s top 100 Hedge Funds in 2015. Tiger Legatus Capital took the 77th position on that list, thanks to a return of 5.37% delivered in 2014, and an average return of 16.70% between 2012 and 2014.
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Insider Monkey’s flagship strategy identifies the best performing 100 hedge funds at the end of each quarter and invests in their consensus stock picks. This way it is always invested in the best ideas of the best performing hedge funds and is able to generate much higher returns than the market. Since its inception in May 2014, our flagship strategy generated a cumulative return of 121% vs. a cumulative gain of 66.6% for the S&P 500 ETF (SPY) (see the details here).
As per Tiger Legatus Capital’s most recent 13F filing with the Securities and Exchange Commission, the fund made several changes to its portfolio during the second quarter. It added five new stocks, raised its position in two, lowered its position in two, and dumped four companies. More details regarding those changes are on the next page.
Starting with the additions to Tiger Legatus Capital’s portfolio, the biggest one was Microsoft Corp (MSFT). The fund established a position in the company worth $19.72 million as of June 30, holding 200,000 shares. Smart money investors from our database were bullish on Microsoft, with 161 hedge funds long the stock on June 30, versus 152 at the end of the first quarter.
The second-largest new stake was invested in Pandora Media Inc. (P), 1.80 million shares of which the fund acquired during the second quarter, obtaining a position that was valued at around $14.18 million at the end of Q2. Pandora Media Inc. (P) is an internet radio and music streaming provider in the U.S. It was founded back in 2000 and has continually evolved since then, with Pandora’s streams being chosen by the feedback of its users. Its primary features are free with advertisements and there are additional features for paid subscribers. Among the hedge funds from Insider Monkey’s system, 35 were long the stock at the end of Q2, down by four from the prior quarter. Other new additions to Tiger Legatus’ portfolio included Google Inc. (GOOG), Wynn Resorts Ltd (WYNN) and Starz Acquisition Llc (STRZA).
While Tiger Legatus Capital decreased its stake in The Stars Group (TSG) by 2% during the second quarter, it still accounted for more than half of its 13F portfolio at a whopping 64.89%. On June 30 its largest stake counted 5.97 million shares that were valued at $216.62 million. The Canadian gaming and online gambling company has enjoyed increased interest among the hedge funds from our database, as 60 of them reported long positions in the company as of the end of June, versus 26 as of the end of March.
There were four companies that Tiger Legatus Capital completely lost faith in during the second quarter. The biggest stake the fund sold out of was in TrueCar, Inc. (TRUE), being valued at $19.87 million on March 31 and counting 2.1 million shares. Hedge funds that we track are also starting to slowly lose interest in TrueCar, Inc. (TRUE), as 17 reported long positions in the company as of June 30, down by three from the March 31. Next in line is Macquarie Infrastructure Company LLC (MIC), in which the fund previously held 5,000 shares that were worth $18.47 million. The other two stocks the fund dumped in Q2 were Alibaba Group Holding Limited (BABA) and Nexstar Media Group Inc. (NXST).
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