In this article, we shall be going over the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital.
Jesse Sunho Ro is the founder and portfolio manager at Tiger Legatus Capital, a New York-based hedge fund, in which Ro had an ownership share of 75%. Graduating magna cum laude from the Wharton School of the University of Pennsylvania, Jesse Ro has also worked as the head of the Investment Banking Division at Bear Stearns and Co, as an Investment Analyst at Axial Capital, and a Portfolio Manager at Viking Global Investors.
On June 16, Institutional Investor reported that Tiger Legatus Capital is the latest hedge fund to draw curtains over its operations and shut down indefinitely owing to dismal returns in the first five months of 2022. In a letter penned to investors, Ro informed them of his decision to liquidate the hedge fund and return all capital, adding that the fund structure and declining assets under management “do not provide the duration of capital necessary to successfully continue our investment strategy without compromising returns”.
The Financial Times has reported that Tiger Legatus was down 2.8 percent in the first quarter of 2022. The S&P 500 index cumulatively lost 5% in the same period. It is pertinent to note however that the fund, since its inception, has doubled investors money, and in 2022, has performed much better than its peers.
As of the first quarter of 2022, Tiger Legatus Capital had 12 stocks in its 13F investment portfolio, with large investments in private equities, healthcare and other services. The fund had a portfolio value of $62.4 million in managed 13F securities, a result of a 0.73% increase since the previous quarter, and a top 10 holdings concentration of 98.31%. According to the latest filings by the SEC, Tiger Legatus posted a turnover percentage of 50.0% with 3 new purchases, 2 additional purchases, and reduced holdings in 6 stocks. It has an average holding time of 5.17 quarters, with a discretionary AUM of $203.6 million.
Prominent stocks to feature on the Q1 2022 investment portfolio of Tiger Legatus Capital are Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp. (NYSE:THC). However, in this article, we shall only be going over the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital.
Methodology
The companies listed below have been chosen from the top of Tiger Legatus Capital’s 13F investment portfolio from Q1 2022. They have been ranked based on the stakes Jesse Ro holds in each stock.
Data from 900+ elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
Top 10 Stock Picks of Jesse Ro’s Tiger Legatus Capital
10. Madison Square Garden Sports Corp. (NYSE:MSGS)
Tiger Legatus Capital’s Stake Value: $2.15M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 3.44%
Number of Hedge Fund Holdings: 40
Based in New York City, New York, Madison Square Garden Sports Corp. (NYSE:MSGS) is an American sports holding company which specializes in the management of professional sports teams. The company was founded in 2010, and is perhaps known most for their management of teams like the Westchester Knicks and the New York Rangers. As of the first quarter of 2022, Silver Lake Partners is the largest shareholder in the stock, owning almost 1.9 million shares worth around $340.8 million. Ro’s Tiger Legatus owns 12,000 shares which have been valued at $2.2 million, a result of the hedge fund manager weakening his hold over the stock by 50%, with Madison Square Garden Sports Corp. (NYSE:MSGS) making up for 3.44% of Tiger Legatus’ investment portfolio for Q1 2022.
Investor interest around the stock seems to have picked up in Q1 2022, with 40 hedge funds long Madison Square Garden Sports Corp. (NYSE:MSGS), compared to 37 hedge funds just a quarter ago.
Longleaf Partners Fund, an investment management firm, mentioned Madison Square Garden Sports Corp. (NYSE:MSGS) in their Q3 2021 investor letter. This is what they had to say:
“While our largest holdings received at least a little market appreciation, our detractors were unreasonably punished based on headline-level misunderstandings. At MSG Sports (NYSE:MSGS) , the Knicks and James Dolan stir strong emotions among finance people in New York, but the fact remains that the Dolan family has made multiple shareholder-friendly moves over the years (which we benefited from as holders of the original incarnation of MSG 10 years ago in the Small-Cap Fund), and we believe that more could be coming for MSGS (NYSE:MSGS) in the near future. In the meantime, the teams’ ups and downs and the lack of any additional news will let the market paint a short-term focused picture. Our ultimate comfort and patience rest in owning the Knicks and the Rangers at a combined enterprise value of $4.8 billion for both. The NBA and NHL comparables, Forbes valuations, and Sportico valuations are all much higher than that for these two teams.”
Hence, like Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp (NYSE:THC), Madison Square Garden Sports Corp. (NYSE:MSGS) makes it to the list of the top 10 stock picks of Tiger Legatus Capital.
9. Vivid Seats Inc. (NYSE:SEAT)
Tiger Legatus Capital’s Stake Value: $2.17M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 3.49%
Number of Hedge Fund Holdings: 16
Founded in 2001, Vivid Seats Inc. (NYSE:SEAT) is an American ticket resale and exchange, public-limited company, headquartered in Chicago, Illinois. The company serves as the middleman between ticket buyers and sellers, reserving a 10% commission off of every ticket sale, with additional charges in the shape of service fees and shipping charges. Jesse Ro’s Tiger Legatus Capital decreased their hold over the stock by 68% in the first quarter of 2022, maintaining only 197,000 shares worth more than $2.17 million. This means that Vivid Seats Inc. (NYSE:SEAT) constitutes 3.49% of Jesse Ro’s 13F portfolio for Q1 2022.
8. Cohn Robbins Holding Corp. (NYSE:CRHC)
Tiger Legatus Capital’s Stake Value: $2.24M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 3.58%
Number of Hedge Fund Holdings: 50
Based in Wilmington, Delaware, Cohn Robbins Holding Corp. (NYSE:CRHC) is a blank check company specializing in effecting mergers, share exchange, asset acquisition, share purchase, reorganization or similar business combinations with one or more entities. Previously named CSR Acquisition Corp, the company was incorporated in 2020 under the name of Cohn Robbins Holding Corp. (NYSE:CRHC). Therefore, in addition to Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp (NYSE:THC), Cohn Robbins Holding Corp. (NYSE:CRHC) features on the list of the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital.
As of the first quarter of 2022, Israel Englander’s Millennium Management is the leading shareholder in the company, with a stake value of more than $52.2 million. Jesse Ro’s Tiger Legatus Capital has purchased more than 225,000 Cohn Robbins Holding Corp. (NYSE:CRHC) shares in the first quarter of 2022, which have been valued at more than $2.2 million.
7. Codere Online Luxembourg (NASDAQ:CDRO)
Tiger Legatus Capital’s Stake Value: $2.8M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 4.41%
Number of Hedge Fund Holdings: 2
Founded in 2021, Codere Online Luxembourg S.A (NASDAQ:CDRO) is an online gaming and sports operator, based in Luxembourg. The company specializes in providing an online sports betting and casino platform through its state-of-the-art website and cell-phone application, and primarily reserves its services for Latin-American markets. As of the first quarter of 2022, Israel Englander’s Millennium Management is the leading stakeholder in Codere Online Luxembourg S.A (NASDAQ:CDRO), owning 607,861 shares worth at around $3.3 million. Jesse Ro’s Tiger Legatus Capital is the second-largest shareholder in the company, with Codere Online Luxembourg S.A (NASDAQ:CDRO) making up for 4.41% of Ro’s investment portfolio.
Like Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp (NYSE:THC), Codere Online Luxembourg S.A (NASDAQ:CDRO) features on the list of the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital.
6. DraftKings Holdings Inc. (NASDAQ:DKNG)
Tiger Legatus Capital’s Stake Value: $3.4M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 5.58%
Number of Hedge Fund Holdings: 27
Based in Boston, Massachusetts, DraftKings Holdings Inc. (NASDAQ:DKNG) is an American daily fantasy sports contest and sports betting company, which facilitates users to enroll in daily and weekly fantasy sports-related contests and earn money based on individual player performances. In April 2020, DraftKings Holdings Inc. (NASDAQ:DKNG) became a publicly traded company via a reverse merger with SBTech and Diamond Eagle Acquisition Corp. As of the first quarter of 2022, Catherine Wood’s ARK Investment Management is the leading shareholder in the company, owning more than 23.4 million shares, awarding Wood a stake of $455.9 million in DraftKings Holdings Inc. (NASDAQ:DKNG).
Hedge fund sentiment around DraftKings Holdings Inc. (NASDAQ:DKNG) has taken a nose-dive in the first quarter of 2022, with only 27 hedge funds having stakes in the company, compared to 34 in Q4 2021. Jesse Ro’s Tiger Legatus Capital owns 179,000 shares which are worth more than $3.4 million.
Here is what Baron Small Cap Fund noted about DraftKings Holdings Inc. (NASDAQ:DKNG) in their Q4 2021 investor letter, a copy of which can be obtained here.
“Shares of DraftKings, Inc. (NASDAQ:DKNG) fell in the quarter, as stocks of online gaming companies were under pressure. Sports betting and i-gaming are rolling out with great fanfare and success across the country; however, investors seem concerned about competition and margins. Most participants are spending heavily on marketing and promotions, which is cutting into margins. We see this as worthy investment in customer acquisition at a moment in time when revenues are just building. We continue to believe that online sports betting and gaming will be enormous industries, that DraftKings (NASDAQ:DKNG) will be a leading player. We think the business will have high margins as it matures. We believe we are underwriting the business conservatively and see much upside in the long term.”
5. Uber Technologies Inc. (NYSE:UBER)
Tiger Legatus Capital’s Stake Value: $5.07M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 8.12%
Number of Hedge Fund Holdings: 144
With almost 23.8 million shares, Ken Fisher’s Fisher Asset Management is the leading shareholder in the stock, with a stake value of $849.07 million in Uber Technologies Inc. (NYSE:UBER), as of the end of the first quarter.
Jesse Ro’s investment in Uber Technologies Inc. (NYSE:UBER) is much more conservative, and with him decreasing his hold over the stock by 16% in Q1 2022, the hedge fund manager now owns 142,000 shares valued at $5.07 million. Consequently, Uber Technologies Inc. (NYSE:UBER) now constitutes 8.12% of Tiger Legatus Capital’s investment portfolio for Q1 2022. Investor interest around the stock has taken a nosedive in Q1 2022, with 144 hedge funds long the stock, compared to 153 in the previous quarter.
ClearBridge Investments mentioned Uber Technologies Inc. (NYSE:UBER) in their Q3 2021 investor letter. This is what they said:
“We have also been looking for multiyear secular trends outside of the IT and Internet sectors to help us maintain a portfolio that can perform well in markets with varied sector or factor leadership. In particular, electrification of the global economy and the transition to electric vehicles (EVs) are areas where we continue to add exposure. We are investing in the brains behind EVs through NXP in the control center and Aptiv for safety features. Global rideshare leader Uber Technologies, Inc. (NYSE:UBER) will also be a key player in the transition from internal combustion engines to EVs.”
4. Expedia Group Inc. (NASDAQ:EXPE)
Tiger Legatus Capital’s Stake Value: $5.1M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 8.21%
Number of Hedge Fund Holdings: 88
Headquartered in Seattle, Washington, Expedia Group Inc. (NASDAQ:EXPE) is an American online travel shopping company for consumer and small business travel. Their websites primarily constitute travel fare aggregators and travel metasearch engines, and as of the first quarter of 2022, Ro’s Tiger Legatus Capital owns 26,200 shares which are valued at $5.1 million.
Hedge fund sentiment around Expedia Group Inc. (NASDAQ:EXPE) seems to have picked up since Q4 2021, where only 82 hedge funds were long the stock, as compared to 88 in Q1 2022. On June 28, Piper Sandler analyst Thomas Champion bestowed an ‘Overweight’ rating on Expedia Group Inc. (NASDAQ:EXPE), maintaining the target price of $155.
Here is what Aristotle Capital Management had to say about Expedia Group Inc. (NASDAQ:EXPE) in their Q1 2022 investor letter:
“Expedia (NASDAQ:EXPE) outperformed in the first quarter following a better-than-expected earnings report for the company’s fourth quarter of 2021. During the pandemic, the company reduced expenses which has improved operating leverage as revenue recovers. Expectations for travel in 2022 have improved as COVID cases have declined.”
3. Apollo Global Management Inc. (NYSE:APO)
Tiger Legatus Capital’s Stake Value: $5.89M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 9.43%
Number of Hedge Fund Holdings: 64
Apollo Global Management Inc. (NYSE:APO) is an American global alternative investment management firm, which is based in New York City, New York, and specializes in credit investment, private equity, and real assets. As of the first quarter of 2022, Apollo Global Management Inc. (NYSE:APO) had over $512 billion worth of assets under management, with Mark Racheksy’s MHR Fund Management emerging as the leading shareholder with stakes worth almost $36 million. Ro’s Tiger Legatus Capital bought 95,000 shares, which are worth more than $5.89 million. This has led to Apollo Global Management Inc. (NYSE:APO) contributing 9.43% to Jesse Ro’s 13F investment portfolio for the first quarter of 2022.
Miller Value Partners, an investment management firm, mentioned Apollo Global Management Inc. (NYSE:APO) in their Q4 2021 investor letter. This is what they said:
“Apollo Global Management (NYSE:APO) rose 18.4% during the quarter. The company reported Q3 distributable earnings (DE) of $1.71, well ahead of consensus of $1.10 and the quarterly dividend of $0.50/share (2.8% annualized yield). Fee-related earnings of $300M beat by 7% while realized net performance fees of $312M topped estimates by 23%. Total assets under management (AUM) of $481.1Bn and fee-earning AUM of $361.3Bn both rose +2% sequentially on the back of robust capital raising with $18.1Bn of inflows over the period. Additionally, Apollo (NYSE:APO) hosted their 2021 Investor Day, outlining long-term financial targets including over $9/share in distributable earnings by 2026 (14% Compound Annual Growth Rate (CAGR) from $5.50 pro-forma 2022E) and fee-related earnings of $4.50-$4.75 (18% CAGR). Management expects to roughly double AUM by 2026 to $1trn from $481Bn currently with a 2.25x increase in fee-related revenues to $4.6Bn.”
2. Tenet Healthcare Corp. (NYSE:THC)
Tiger Legatus Capital’s Stake Value: $13.9M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 22.31%
Number of Hedge Fund Holdings: 55
Based in Dallas, Texas, Tenet Healthcare Corp. (NYSE:THC) is a multinational healthcare services company which operates in over 65 hospitals and 450 healthcare facilities in countries around the world. Since its founding in 1969, Tenet Healthcare Corp. (NYSE:THC) has expanded, cultivating multiple brands, subsidiaries, joint ventures and partnerships, most notably the USPI and Conifer Health Solutions. Jesse Ro’s Tiger Legatus Capital has a stake value of more than $13.9 million through its purchase of 162,000 shares in Q1 2022, which means Tenet (NYSE:THC) constitutes 22.31% of Ro’s 13F investment portfolio.
On June 16, Loop Capital analyst Joseph France conferred a ‘Buy’ rating on the stock, maintaining the price target at $80.
Oakmark Funds mentioned Tenet Healthcare Corp. (NYSE:THC) in their Q3 2021 investor letter. This is what they said:
“Tenet (NYSE:THC) may be best known as the second-largest public hospital chain in the U.S., but its largest business is outpatient acute care centers. In early 2020, investors fled the health care industry because of the great uncertainty that the pandemic presented. The early days of the pandemic were very hard on the hospital industry especially, but as the Covid-19 surge peaked and diminished, hospitals were able to schedule elective procedures and engage in profitable activities.”
1. Patria Investments Ltd. (NASDAQ:PAX)
Tiger Legatus Capital’s Stake Value: $18.5M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 29.68%
Number of Hedge Fund Holdings: 11
Founded in 1994 and based in the Cayman Islands, Patria Investments Ltd. (NASDAQ:PAX) is an alternative investment management firm with a combined AUM of $27.6 billion. Primarily focused on Latin America and a global presence with offices in 9 cities over 4 continents, Patria Investments Ltd. (NASDAQ:PAX) deals in private equity, infrastructure and credit investment, and real assets. As of the first quarter of 2022, Adage Capital Management is the leading shareholder in the company, with over 2.65 million shares worth more than $47.2 million. Jesse Ro’s Tiger Legatus Capital is the fourth-largest shareholder in Patria Investments Ltd. (NASDAQ:PAX), owning more than 1.04 million shares which have been valued at $18.52 million. Ro has significantly strengthened his hold over the stock by 11456% in the first quarter of 2022.
Follow Insider Monkey on Twitter
Suggested Articles:
- 10 Stocks to Buy and Hold for Long Term According to Warren Buffett
- 10 Cryptocurrencies Trending on Reddit in March
- 10 Best SPACs to Invest In According to Reddit
Disclosure. None. Top 10 Stock Picks of Jesse Ro’s Tiger Legatus Capital is originally published on Insider Monkey.
