In this article we discuss the 10 best tech and dividend stocks to buy according to billionaire Chase Coleman. If you want to skip our detailed analysis of Coleman’s history and hedge fund performance, go directly to the 5 Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman.
Chase Coleman is a force to reckon with in the investment world. The billionaire investor has made a name for himself as the founder and partner of Tiger Global Management LLC. The New York-based investment firm invests in public and private internet, software, consumer, and financial technology companies.
Since its inception in the early 2000s, Tiger Global has grown into a highly successful investment firm with about $43 billion in portfolio. Coleman serves as the portfolio manager for the private and public equity businesses. He has previously worked for legendary investor Julian Robertson of Tiger Management. He has also worked with Lee Fixel, who oversaw Tiger Global’s venture funds, before stepping down in 2019.
While overseeing Tiger Global’s public equity segment, Coleman deploys fundamentally long and short-term investment strategies focusing on high-quality companies that benefit from secular growth. Tiger Global also invests in small-cap stocks and technology start-ups, with tremendous opportunities for growth.
As of the first quarter of 2021, Tiger Global Management LLC has a significant holding in Alibaba Group Holding Limited (NYSE: BABA), commonly referred to as China’s Amazon. The hedge fund run by Chase Coleman owns 4.48 million shares in the company worth over $1.02 billion, representing 2.33% of their investment portfolio. On May 13, Alibaba Group Holding Limited (NYSE: BABA) declared a 64% YoY increase in its Q1 2021 revenue.
The tiger cub also has a $4.5 billion stake in Chinese internet giant JD.com, Inc. (NASDAQ: JD). Tiger Global Management is a leading shareholder of JD.com, with 51 million shares worth more than $4 billion. JD.com, Inc. (NASDAQ: JD), China’s leading technology-driven e-commerce company, announced its Q1 2021 results on May 19. Net revenues were RMB203.2 billion, an increase of 39.0% from Q1 2020.
Another technology stock in Coleman’s portfolio is Amazon.com, Inc. (NASDAQ: AMZN). Tiger Global Management LLC holds 613,095 shares in the company worth over $1.90 billion, representing 4.36% of their portfolio. On April 5, Evercore ISI analyst Mark Mahaney upgraded Amazon.com, Inc. (NASDAQ: AMZN) to “Overweight” and set a price target of $4,000.00. At the end of the first quarter of 2021, 243 hedge funds in the database of Insider Monkey held stakes worth $50 billion in Amazon.com, Inc. (NASDAQ: AMZN), down from 273 the preceding quarter worth $52 billion. Based on our calculations, Amazon ranks 3rd in our list of the 30 Most Popular Stocks Among Hedge Funds.
The demand for dividend stocks has also been gaining traction as more people look for consistent revenue sources now that there is so much market uncertainty. Finding the best dividend stocks is not exactly a walk in the park, and it requires a lot of research. Even the hedge funds are struggling at finding valuable stocks amid the increasing financial volatility. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26, 2021, our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017, and they lost 13% through November 16. That’s why we believe hedge fund sentiment is a handy indicator that investors should consider. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this background in mind, let’s start our list of 10 best tech and dividend stocks to buy according to billionaire Chase Coleman. We used Coleman’s 13F portfolio for the first quarter of 2021 for this analysis and included some of the best dividend and tech stocks in his portfolio.
Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman
10. Mastercard Incorporated (NASDAQ: MA)
Coleman’s Stake Value: $257,780,000
Percentage of Chase Coleman’s 13F Portfolio: 0.59%
Dividend Yield: 0.48%
Number of Hedge Fund Holders: 151
Mastercard Incorporated (NASDAQ: MA) is an American multinational tech firm, which provides global payments processing network to consumers, financial institutions, merchants, governments, and businesses. It was founded in 1966 and is placed tenth on our list of 10 best tech and dividend stocks to buy according to billionaire Chase Coleman. The company stock has returned more than 17.92% to investors over the course of the past twelve months.
On April 27, cryptocurrency exchange and custodian Gemini collaborated with Mastercard Incorporated (NASDAQ: MA) for a crypto rewards credit card. On May 18, Mastercard Incorporated (NASDAQ: MA) was upgraded to “Outperform” from “Neutral” at Daiwa Securities, with a price target of $402.00.
The hedge fund run by Chase Coleman owns 724,000 shares in the company worth over $257 million. At the end of the first quarter of 2021, 151 hedge funds in the database of Insider Monkey held stakes worth $17.09 billion in Mastercard Incorporated (NASDAQ: MA), down 154 from the preceding quarter worth $17.98 billion.
In its Q4 2020 investor letter, Bretton Fund, an asset management firm, highlighted a few stocks and Mastercard Incorporated (NYSE: MA) was one of them. Here is what the fund said:
“While consumers resumed much of their spending by summer, what and how they used their Visas and Mastercards changed. For obvious reasons, people shifted to contactless payments—one of the Covid-era changes we think is permanent—and replaced travel purchases with online shopping and food delivery. Consumers spent more on their debit cards and less on their credit cards; Visa and Mastercard Incorporated (NASDAQ: MA) make more per transaction on the latter. They also make more on cross-border transactions that come mostly from international travel, which ground to a halt early in the pandemic. Visa’s and Mastercard’s earnings per share fell by 7% and 16%, respectively, compared to their usual mid-teens growth. We’re not too worried, and we think they’ll catch up nicely in the post-vaccine world. Visa’s stock returned 17.1% and Mastercard’s 20.2%.”
9. Visa Inc. (NYSE: V)
Coleman’s Stake Value: $34,512,000
Percentage of Chase Coleman’s 13F Portfolio: 0.07%
Dividend Yield: 0.56%
Number of Hedge Fund Holders: 164
Visa Inc. (NYSE: V) is a payment tech company, which smoothens digital payments among customers, businesses, financial institutions, and government agencies. It was founded in 1958 and is placed ninth on our list of 10 best tech and dividend stocks to buy according to billionaire Chase Coleman. The company stock has offered investors returns exceeding 15% in the past year.
On June 7, Visa Inc. (NYSE: V) was upgraded to “Overweight” from “Neutral” at Piper Sandler where the was set at $285. On April 28, Visa declared a quarterly dividend of $0.32 per share, in line with the previous. Like Microsoft Corporation (NASDAQ: MSFT), Alibaba Group Holding Limited (NYSE: BABA), JD.com, Inc. (NASDAQ: JD) and Amazon.com, Inc. (NASDAQ: AMZN), Visa Inc. (NYSE: V) is one of the best stocks to buy according to billionaire Chase Coleman.
Tiger Global Management LLC holds 163,000 shares in the company worth over $34 million. Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Akre Capital Management is a leading shareholder in Visa Inc. (NYSE: V) with 5.87 million shares worth more than $2 billion. Based on our calculations, Visa ranks 5th in our list of the 30 Most Popular Stocks Among Hedge Funds.
In its Q1 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Visa Inc. (NYSE: V) was one of them. Here is what the fund said:
“To make room for these new names with more attractive outlooks related to the reopening, we sold out of companies where the thesis is not playing out at the pace we expected including Visa.”
8. Intuit Inc. (NASDAQ: INTU)
Coleman’s Stake Value: $84,747,000
Percentage of Chase Coleman’s 13F Portfolio: 0.19%
Dividend Yield: 0.51%
Number of Hedge Fund Holders: 68
Intuit Inc. (NASDAQ: INTU) is an American company, which provides financial administration for its customers, micro-enterprises, and bookkeeping professionals globally. It was founded in 1983 and is placed eighth on our list of 10 best tech and dividend stocks to buy according to billionaire Chase Coleman. Intuit Inc. (NASDAQ: INTU) has returned more than 57% to investors over the past year.
On May 25, Intuit declared a quarterly dividend of $0.59 per share, in line with the previous. On May 27, Exane BNP Paribas analyst Stefan Slowinski upgraded Intuit Inc. (NASDAQ: INTU) from “Underperform” to “Neutral.” He set a price target of $470.00.
The hedge fund run by Chase Coleman owns 221,237 shares in the company worth over $84 million, representing 0.19% of their investment portfolio. Out of the hedge funds being tracked by Insider Monkey, Fundsmith LLP is a leading shareholder in Intuit Inc. (NASDAQ: INTU), with 4.6 million shares worth more than $1.7 billion.
Just like Microsoft Corporation (NASDAQ: MSFT), Alibaba Group Holding Limited (NYSE: BABA), JD.com, Inc. (NASDAQ: JD) and Amazon.com, Inc. (NASDAQ: AMZN), Intuit Inc. (NASDAQ: INTU) is one of the best stocks to buy according to billionaire Chase Coleman.
In its Q3 2020 investor letter, L1 Capital International Fund highlighted a few stocks and Intuit Inc. (NASDAQ: INTU) is one of them. Here is what L1 Capital International Fund said:
“Intuit epitomises the consistency, predictability and longevity of growth we seek in high quality businesses.
Intuit currently operates through 2 main divisions:
Software for financial and business management as well as integrated payroll solutions, merchant payment processing solutions, and financing for small businesses in the US and key global markets; and
Do-it-yourself and assisted income tax preparation software products and services sold in the U.S. and Canada.
Intuit also provides personal financial software and services through its Mint and Turbo products and has announced the acquisition of Credit Karma for US$7.1 billion which will significantly expand its personal finance capabilities, creating a third leg to Intuit’s growth stool.
Intuit’s tax capabilities also include software and services for professional accountants in the United States and Canada.
Intuit has made 5 “big bets” which extend across its divisions and drive its operating strategy and growth profile:
Utilisation of Artificial Intelligence (AI) and customer insight (based on unique data) to make products simpler and to increase the speed of product enhancements – many of Intuit’s products are “do it for myself” applications and AI can facilitate self-help and ease of use.
Connecting people to experts – QuickBooks Live, TurboTax Live and Mint Live enable customers to speak to independent experts to solve their issues, increasing the number of customers, engagement levels, and revenue per customer.
Facilitating “smart money decisions” by connecting customers with financial offerings that save them money – there are now 22 million registered users of Turbo and this division will be significantly expanded through Credit Karma’s over 100 million members (37 million monthly active users) once the acquisition completes.
Becoming “the source of truth for a business”, not just “the source of truth for your books” – Intuit aims to assist small business customers get paid fast, manage capital, pay employees and grow in an omnichannel world. Intuit has unique capabilities through the integrated QuickBooks software, Payroll, Payments and QuickBooks Cash bank account, facilitating payments ($65 billion charge volume) and optimising cashflow management.
Disrupt the market for accounting software for businesses with 10 to 100 employees – QuickBooks’ traditional strength lies with smaller businesses but QuickBooks Advanced expands the product’s capabilities to fully service larger businesses at a very competitive price point, albeit multiples of the standard QuickBooks price.
These “big bets” support consistent, predictable growth in all of Intuit’s key businesses:[Read the complete letter here]
7. Farmland Partners Inc. (NYSE: FPI)
Coleman’s Stake Value: $499,000
Percentage of Chase Coleman’s 13F Portfolio: 0.001%
Dividend Yield: 1.52%
Number of Hedge Fund Holders: 5
Farmland Partners Inc. (NYSE: FPI) is a real estate company, which procures high-yielding North-American farmlands, and provides loans to the farmers. Farmland Partners Inc. (NYSE: FPI) has returned more than 83% to investors during the course of the past twelve months. It was founded in 2013 and is ranked seventh on our list of 10 best tech and dividend stocks to buy according to billionaire Chase Coleman.
Last week, Farmland Partners Inc. (NYSE: FPI) acquired high-quality Louisiana-based farmland, for $26.8 million, with a plan to lease it for the coming years. On May 14, Farmland Partners Inc. (NYSE: FPI) declared a quarterly dividend of $0.05 per share in line with previous. Last month, the company reported Q1 2021 revenue of $11.58 million, down 0.6% YoY, beating estimates by $1.35 million. Just like Microsoft Corporation (NASDAQ: MSFT), Alibaba Group Holding Limited (NYSE: BABA), JD.com, Inc. (NASDAQ: JD) and Amazon.com, Inc. (NASDAQ: AMZN), Farmland Partners is one of the best stocks to buy according to billionaire Chase Coleman.
The hedge fund run by Chase Coleman owns 44,502 shares in the real estate company worth over $499,000. At the end of the first quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $2 million in Farmland Partners Inc. (NYSE: FPI), down from 8 the preceding quarter worth $3.7 million.
6. Microsoft Corporation (NASDAQ: MSFT)
Coleman’s Stake Value: $3,235,409,000
Percentage of Chase Coleman’s 13F Portfolio: 7.44%
Dividend Yield: 0.89%
Number of Hedge Fund Holders: 251
Microsoft Corporation (NASDAQ: MSFT) is a tech company, which provides, permits, and aids software, gadgets, and services globally. Microsoft Corporation (NASDAQ: MSFT) has offered investors returns exceeding 34% in the past year. It was founded in 1975 and is placed sixth on our list of 10 best tech and dividend stocks to buy according to billionaire Chase Coleman.
Last week, Morgan Stanley and Microsoft Corporation (NASDAQ: MSFT) collaborated to refurbish the bank’s IT conditions. Together, they will develop and co-launch the latest application infrastructure to meet the essential needs for financial services. On April 27, the company reported Q3 2021 revenue of $41.71 billion, up 19.1% YoY, beating the estimates by $860 million.
Tiger Global Management LLC holds more than 13 million shares in the firm, worth over $3 billion. This represents 7.44% of their portfolio. Its activity on Microsoft stock increased by 16% in the past few months, the latest data reveals. Based on our calculations, Microsoft Corporation (NASDAQ: MSFT) ranks 4th in our list of the 30 Most Popular Stocks Among Hedge Funds.
In its Q1 2021 investor letter, Polen Capital, an investment management firm, highlighted a few stocks and Microsoft Corporation (NASDAQ: MSFT) was one of them. Here is what the fund said:
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”
Just like Alibaba Group Holding Limited (NYSE: BABA), JD.com, Inc. (NASDAQ: JD) and Amazon.com, Inc. (NASDAQ: AMZN), Farmland Partners is one of the best stocks to buy according to billionaire Chase Coleman.
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Disclosure: None. 10 Best Tech and Dividend Stocks to Buy According to Billionaire Chase Coleman is originally published on Insider Monkey.
