Billionaire Chase Coleman Is Betting Big on Industry Disruptors from Tech Sector

Technology is still a hot sector as we can see from Billionaire Tiger Cub Chase Coleman‘s equity portfolio, which has just been disclosed in his firm’s 13F filing for the third quarter. Tiger Global Management held around $8.12 billion in shares of U.S publicly-traded companies, with the top three holdings represented by tech companies and amassing over 60% of the total value. Chase Coleman is one of the best performing Tiger Cubs, which is why we follow his moves as part of our investment strategy.

Through extensive research, we have determined that retail investors can generate substantial profits from piggybacking larger money managers. Hedge funds and other institutional investors focus on the long-term, which offsets the delays in their filings. Our focus is the small-caps that over 700 funds from our database are collectively bullish on and this approach has helped us generate returns of around 102% since August 2012, outperforming the broader market by around 53 percentage points (see more details here).

With this in mind, let’s take a look at Tiger Global Management’s top five holdings, starting from the bottom. On the fifth spot is Restoration Hardware Holdings Inc (NYSE:RH), in which the fund held 3.19 million shares as of the end of September; the value of the stake amounting to $297.98 million and representing 3.67% of Tiger Global’s equity portfolio. Restoration Hardware is a $3.7 billion home furnishings retailer, whose stock has gained nearly 11% since the beginning of 2015. Though it has lost over 10% in the last three months, being just ahead of the holiday season, Restoration Hardware Holdings Inc (NYSE:RH) could be a good stock to hold. Analysts are also bullish on Restoration Hardware, with a number of them upgrading the stock to ‘Buy’ or ‘Outperform’ in the last couple of weeks. Ken Griffin’s Citadel Advisors is another shareholder of Restoration Hardware Holdings Inc (NYSE:RH), which added 604,021 shares to its stake in the third quarter, reporting ownership of 1.01 million shares as of the end of September.

In FleetCor Technologies, Inc. (NYSE:FLT), Coleman’s fund reported a $628.92 million stake that contains 4.57 million shares. FleetCor Technologies, Inc. (NYSE:FLT)’s stock slid by 11% in the third quarter, but the investor kept his bullish thesis and took the opportunity to acquire 1.47 million shares, raising the stake by 47% on the quarter. So far, FleetCor’s shares are flat in year-to-date terms and sport a P/E ratio of 32.7, which is above the median for the S&P 500, but below the industry average. FleetCor provides fuel cards and other payment solutions for oil companies and retailers and should benefit from the growth in the payment business as more and more customers switch to non-cash methods of payment. Another Tiger Cub, Stephen Mandel of Lone Pine Capital, is also fond of FleetCor Technologies, Inc. (NYSE:FLT), as Lone Pine reported ownership of 6.43 million shares in its 13F filing for the third quarter.

On the next page, we are going to take a look at Chase Coleman’s top three tech bets, which include Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), and JD.Com Inc (ADR) (NASDAQ:JD).