Tiger Global Management LLC, which is managed by Chase Coleman, while Feroz Dewan manages the firm’s hedge fund, has disclosed its equity positions as of the 31st of December 2014, in its latest 13F filing with the SEC. The firm took 25 new positions, made additional purchases on 11 previously held stocks, and closed its stake in 8 companies. While Alibaba Group Holding Ltd (NYSE:BABA) was the most significant of the new stakes initiated, Twenty-First Century Fox Inc (NASDAQ:FOXA), Mastercard Inc (NYSE:MA), TransDigm Group Incorporated (NYSE:TDG) and Bitauto Hldg Ltd (ADR) (NYSE:BITA) formed the highest percentage in terms of portfolio value.
Founded in 2001 by Chase Coleman, Tiger Global Management LLC is an offshoot of Tiger Management, one of the oldest hedge funds, managed by the legendary Julian Robertson. Coleman is one of those ‘Tiger Cubs’, the name given to hedge funds managers who were once employed by Robertson, who often seeded those funds to get them started; ‘tiger seed’. Tiger Global’s annualized return since its inception is 22.2%. Even for 2014, when many hedge funds struggled to post substantial returns, Tiger Global was able to deliver 16.9% returns. Tiger Global currently has $21.2 billion worth of regulatory assets under management.
Tiger Global disclosed 5.82 million shares of Alibaba Group Holding Ltd (NYSE:BABA), which amounted to an investment of $604.5 million at the end of December. However, considering the beating that Alibaba Group Holding Ltd (NYSE:BABA) has taken during this year, on account of missing the estimated revenue mark in its third quarter earnings report, the fund’s portfolio has in all probability taken a serious hit given the sizable stake that it had in the Chinese e-commerce giant at the end of the filing period. Alibaba posted revenues of $4.22 billion as compared with the estimated $4.45 billion.
Other hedge funds which purchased shares of Alibaba during the quarter include Dan Loeb’s Third Point and Jeffrey Ubben’s Starboard Value. They added 2.80 million and 400,000 shares respectively.
Twenty-First Century Fox Inc (NASDAQ:FOXA) occupied the spot of highest percentage contribution in Tiger Global’s portfolio, totalling 7.62%. No changes were made in the position during the fourth quarter and its value stood at about $645 million.
Despite beating the earnings estimates in its second quarter earnings report, the media and entertainment company has seen its stock price slide by nearly 10% since the start of this year. Headwinds for the company include a tough future outlook for network TV and also FX challenges.
Mastercard Inc (NYSE:MA) is also a strong component of Tiger Global’s portfolio, comprising nearly 7.62% of it, according to the latest filing. The fund’s exposure to the company was slightly reduced, as 372,411 shares were sold during the fourth quarter. This put the market value of the Mastercard position at nearly $621 million. Mastercard is also one of the top picks of Tom Russo‘s Gardner Russo & Gardner, with its stake in the company being valued at nearly $860 million.
The payments related service provider is up nearly 2% year-to-date after the company beat Earnings per Share (EPS) estimates by $0.02. The revenues reported also came in $30 million higher than estimated and amounted to $2.42 billion.
Tiger Global is also betting on TransDigm Group Incorporated (NYSE:TDG) to boost its portfolio returns during 2015. The designer, producer and supplier of engineered aircraft components saw its share in the fund’s portfolio decline slightly, as the managers shed some 5,076 of the company’s shares. However, the contribution of Transdigm in the fund’s portfolio still remains at a significant level of 5.89%, which amounts to nearly $499 million in market value.
The company’s stock has performed well since the start of this year and is up about 6.6%. Stockbridge Partners, led by Robert J. Small also has a significant stake in the company, which stands at about $262 million, according to the latest filing.
Tiger Global also has a sizable stake in Bitauto Hldg Ltd (ADR) (NYSE:BITA), which remained unchanged during the fourth quarter. The current holding comprises 6.57 million shares valued at about $462 million. The stake forms 5.46% of the fund’s portfolio value.
The provider of Internet content and marketing services for the fast growing Chinese automotive industry is down nearly 8.5% year-to-date, mostly owing to concerns surrounding the slowdown of the Chinese economy, which has significantly hit the auto industry there. The company has recently closed a partnership deal with JD.com and Tencent Holdings, which gives them a 25% and 3.3% stake in Bitauto respectively.
Disclosure: None
