Top 5 Stock Picks of Christopher Lyle’s SCGE Management

In this article, we discuss the top 5 stock picks of Christopher Lyle’s SCGE Management. If you want to read our detailed analysis of Lyle’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Christopher Lyle’s SCGE Management.

5. Sea Limited (NYSE:SE)

SCGE Management: $718,678,000
Percentage of SCGE Management’s 13F Portfolio: 6.66%
Number of Hedge Fund Holders: 117

Sea Limited (NYSE:SE) is an online gaming firm that operates on internet and mobile platforms. Digital Entertainment, E-Commerce, and Digital Financial Services are the three segments of the company. Sea Limited (NYSE:SE)’s third quarter active users increased by 27.4% year-over-year to 729 million.

After rolling forward values following the company’s Q3 results, CLSA analyst Neel Sinha upgraded Sea Limited (NYSE:SE) to “Buy” from “Outperform” in November, with a price target of $455, up from $352. With 10.41 million shares worth $3.32 billion, Tiger Global Management is the largest shareholder of Sea Limited (NYSE:SE) as of Q3.

Overall, hedge funds are loading up on Sea Limited (NYSE:SE), as 117 out of the 867 funds tracked by Insider Monkey held stakes in the online gaming company, up from 104 funds a quarter earlier.

Tao Value, an investment management firm, in its second-quarter 2021 investor letter, mentioned Sea Limited (NYSE:SE). Here is what the fund said:

“Sea continued to execute above expectation. The gaming business continued strong momentum, recording bookings of $1.1 billion, growing 117% y-o-y. The major franchise Free Fire showed no sign of slowing down in established ASEAN & LatAm market and received positive reception from new markets like US. On e-commerce side, Shopee demonstrated early success in expanding to Brazil, by adopting a low-price category & gamification strategy. For 2021, Shopee is now top downloaded e-commerce app in Brazil, almost 2x of the second-place local leader Mercado Libre (MELI). I also see the most promising development is in its FinTech business – SeaMoney, which more than doubled its revenue in Q1 2021 from the previous quarter! With online lending products rolling out, SeaMoney is poised to grow rapidly, becoming the 3rd growth curve for Sea.”