This content is from: Corner Office
The Most Popular Stocks with the Tiger Crowd
These nine stocks had the most fans among the group of managers affiliated with Julian Robertson Jr.’s Tiger Management.
The investment activities of the so-called Tiger Cubs, Grandcubs, and Seeds — those hedge fund managers who have some sort of tie to the legendary octogenarian investor Julian Robertson Jr.’s Tiger Management Corp. — are always closely watched. This is because a portion of these roughly four dozen managers are considered among the most elite hedge fund managers, even though many of them are losing money this year. Here are the nine stocks that have the highest number of Tiger-related managers among their shareholders as of the end of the third quarter, according to data from Novus.com, a portfolio intelligence platform that tracks the holdings of more than 1,300 hedge funds. Three of the four most popular stocks among the Tiger crowd are among the so-called FANG stocks: Facebook, Amazon.com and Google, now called Alphabet. (Not on that list is Netflix, the “N” in FANG.)
FACEBOOK (25 Tiger-related investors))
Facebook is once again the most widely held stock among the Tiger crowd, with 25 firms holding shares of the social media pioneer. The stock is the second-largest individual long holding of Andreas Halvorsen’s Viking Global Investors, which is also the largest sizable hedge fund investor in Facebook. It is the largest U.S. long position of several Tiger descendants, including Philippe Laffont’s Coatue Management, and is the third-largest U.S. long of John Griffin’s Blue Ridge Capital and Chris Hansen’s Valiant Capital Management.
The e-commerce giant is the largest long holding of Viking Global Investors and the hedge fund firm’s best performer in both the second and third quarters. “The market underappreciates the strength of the company’s revenue growth and the degree to which margins are likely to expand over the next several years,” it told clients in its second-quarter letter. The stock is also the second-largest U.S. long of Chase Coleman’s Tiger Global Management.
CHARTER COMMUNICATIONS (19)
The cable and broadband giant is the largest U.S. long holding of Stephen Mandel Jr.’s Lone Pine Capital, which is the company’s tenth-largest shareholder. It is also the third-largest U.S. long holding of Tiger Global, which told investors in its second-quarter letter that the stock could double in the next three or four years. Several smaller Tiger Grandcubs and Seeds count the stock as their second-largest long, including Tybourne Capital Management, Tiger Eye Capital, and Marble Arch Investments.
ALPHABET Class C (18)
The nonvoting class of Google’s parent company became a new position for Tiger Global in the third quarter, making it the firm’s eighth-largest U.S. long position. Viking sharply increased its stake in the search giant, making it the firm’s seventh-largest holding. If you combine the C shares with its stake in the A shares, Alphabet is Viking’s second-largest long bet.
THE PRICELINE GROUP (17)
The online travel agency known for brands like Booking.com is the largest U.S. long holding of Tiger Global. In its second-quarter letter, the hedge fund called it a “compelling opportunity,” citing its growing market share of global hotel bookings, flat-to-positive margins, aggressive capital return to shareholders, its “great” management team, and an attractive stock market valuation. It is also the largest holding of smaller Tiger-related firms like Bloom Tree Partners and Fox Point Capital Management.
FLEETCOR TECHNOLOGIES (16)
The payment-processing company has been a longtime favorite among the Tiger crowd. Lone Pine is the second-largest shareholder, while Tiger Global is the seventh-largest. It is also the fourth-largest U.S. long holding of Valinor Management and a major holding of Tiger Eye and Bloom Tree.
ALIBABA GROUP HOLDING (13)
The Chinese e-commerce giant was rediscovered by the Tiger crowd — and hedge funds in general — in the third quarter. Tiger Global established a new, 5.3 million-share stake, making the stock its fifth-largest U.S. long position. Lone Pine bought nearly the same amount of shares, but they are only the firm’s 21st largest U.S. long. Coatue Management was another major initial buyer of the stock.
LIBERTY GLOBAL Class C (13)
Blue Ridge Capital is the seventh-largest shareholder of the telecom giant; however, it is not a significant part of the Tiger Cub’s portfolio. In fact, no Tiger-related fund includes the stock among its top-ten holdings. Other investors include Falcon Edge Capital.
The Tiger crowd warmed up to this stock last quarter, with 13 holding positions in the credit card processor, compared with ten in the second quarter. Discovery Capital Management boosted its stake in Visa by more than 50 percent, making the stock the fifth-largest U.S. long holding of the global macro investor. The stock is also the fourth-largest holding of Miura Global Management.