We recently compiled a list of the Tech Billionaire Chase Coleman’s Top 10 Stock Picks. In this article, we are going to take a look at where Apollo Global Management Inc. (NYSE:APO) stands against the other top stock picks of Tech Billionaire Chase Coleman.
“Tiger cub” Chase Coleman continues to shape the investment landscape with his strategic portfolio decisions. His New York-based investment firm, Tiger Global Management, helped him carve his own path in the financial world and distinguish himself as one of the most successful protegees of Julian Robertson. Previously, Coleman held the position of technology analyst at Tiger Management. Since its foundation in 2001, carrying forward Robertson’s legacy, Tiger Global Management has consistently outperformed market benchmarks.
Focusing mainly on the tech sector, with “headliners” such as Faceabook, Tiger Global led all venture capital firms in raised capital between 2007 and 2017. Additionally, in 2020, the firm generated $10.4 billion in profits for its investors, securing the top spot among hedge funds on LCH Investments’ annual list of world’s greatest hedge fund managers. When the tech sector faced a major downturn in 2022, Tiger Global’s portfolio, which was heavily invested in technology, took a significant hit. The bold strategy of sticking to high-growth technology firms paid off, as the firm’s equity portfolio recovered and showed steady gains in the following years.
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As of the end of the third quarter of 2024, Tiger Global’s holdings continue to reflect Coleman’s emphasis on the tech sector, with 45 holdings where technology stocks dominate 52.37% of the portfolio, along with concentrations in communication services, healthcare, and financial services. Despite a challenging global environment, the fund has maintained steady growth, increasing its value by over 1.08%, reaching over $23.4 billion in value.
Chase Coleman’s commitment to identifying high-quality businesses, especially in the tech sector, is reflected in Tiger Global’s top stock picks. These choices highlight a strategy centered on industry leaders and innovative companies with strong growth potential.
Chase Coleman of Tiger Global
Our Methodology
To compile the list of Chase Coleman’s top 10 stock picks, we have looked at Tiger Global Management’s latest 13F filing and identified the largest positions based on their value.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Apollo Global Management Inc. (NYSE:APO)
Shares held by Tiger Global: 12.29 million
Value of position: $1.53 billion
Apollo Global Management Inc. (NYSE:APO) is a prominent American asset management firm specializing in alternative investments. It focuses on credit, private equity, and real assets, serving a diverse client base, including pension funds, sovereign wealth funds, and institutional and individual investors. Tiger Global Management holds 12,285,193 shares of Apollo Global Management, valued at $1.53 billion, representing 6.54% of its portfolio.
The firm’s financial performance is characterized by strong revenue, income, and earnings growth: its trailing 12 months revenue is $31.67 billion, with an impressive 77.12% growth over the past five years. Net income for the trailing 12 months is $5.56 billion, showing a 64.2% increase over the same period. Additionally, the company’s diluted EPS for the TTM is $9.47, and analysts project continued growth, with EPS estimates of $7.13 for 2024 and $8.52 for 2025.
Recently, Apollo Global Management Inc. (NYSE:APO) has outlined an ambitious 5-year growth strategy focused on achieving an average annual Fee-Related Earnings (FRE) growth of 20%, doubling its Adjusted Net Income per share to $15 by 2029, and generating $21 billion in capital. As of this last quarter, progress seems to be in line with its objectives, with record FRE surpassing $1.5 billion year-to-date in 2024 and a 20% year-over-year increase in credit management fees. The company maintains cost discipline, keeping expense growth at 11% year-to-date despite rising revenues.
Overall, the stock is a strong choice due to its solid financial performance and clear strategic vision. Additionally, Apollo Global Management Inc. (NYSE:APO)’s inclusion in Baron FinTech Fund highlights the stock’s appeal to investors focusing on tech-enabled financial services.
Overall, APO ranks 4th on our list of Billionaire Chase Coleman’s top stock picks. While we acknowledge the potential of APO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than APO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
