Tiger Consumer Management, the hedge fund managed by Patrick McCormack, has made its 13G filing with the U.S. Securities and Exchange Commission for the end of the fourth quarter of 2014. In the filing, the fund revealed a total of 25 positions held through the end of the year. The fund’s equity portfolio is valued at around $1.39 billion, down from $2.01 billion reported at the end of the third quarter. The top five holdings in terms of value, were Liberty Global plc (NASDAQ:LBTYK), CarMax Inc (NYSE:KMX), Facebook Inc (NASDAQ:FB), Netflix Inc. (NASDAQ:NFLX), and Michael Kors Holdings Ltd (NYSE:KORS). In this article, we will discuss each of these holdings.
New York-based Tiger Consumer Management is one of the many hedge funds seeded by legendary investor Julian Robertson, who is the founder of Tiger Management. As the name suggests, Tiger Consumer Management mainly focuses on the consumer sector. “We do not engage in market timing and therefore do not change our net exposure based on a market or economic view. The two governing factors to our growth are liquidity and research capacity,” McCormack writes in a 2010 letter to investors.
Here are Tiger Consumer Management’s five largest holdings at the end of 2014. At the top is Liberty Global plc (NASDAQ:LBTYK), despite the fund reducing its stake by over 30% during the fourth quarter. The investor revealed ownership of 1.51 million shares, down from the 2.04 million shares held previously. The stake is valued at $72.84 million. Liberty Global plc (NASDAQ:LBTYK) is a $31.8 billion market cap international cable company, which operates in 14 countries. Among the funds we track, Boykin Curry’s Eagle Capital Management is the largest shareholder of the company, owning 32.96 million shares as of December 31, 2014. Another investor is John H. Scully’s SPO Advisory Corp, which reported holding 22.64 million shares of the company as of the end of the fourth quarter.
Next is CarMax Inc (NYSE:KMX), a $14.2 billion market cap company engaged in the used cars business. During the fourth quarter, Tiger Consumer Management decreased the size of its position in the company to 1.09 million shares, worth $72.77 million, down 36% from the 1.72 million shares held earlier. Other notable investors of the company include Tom Gayner’s Markel Gayner Asset Management, which held 4.96 million shares at the end of the year, and Abrams Bison Investments, run by Gavin M. Abrams, which also seems to be fan of the company, as it reported owning 3.25 million shares as of the end of December, 2014.
Tiger Consumer Management disclosed its third largest stake as being in Facebook Inc (NASDAQ:FB), which has a market cap of $212.3 billion. During the fourth quarter, the fund reduced its stake in the social networking company to 854,980 shares from 1.19 million shares held at the end of the previous quarter. The reported value of the holding is $66.71 million.
Facebook Inc (NASDAQ:FB) is also a favorite stock of Stephen Mandel’s Lone Pine Capital, which boosted its stake in the company to 13.50 million shares during the fourth quarter. In its latest 13F filing, Coatue Management, run by Philippe Laffont, owned 7.18 million shares in Facebook Inc (NASDAQ:FB). During the fourth quarter, John Griffin’s Blue Ridge Capital also initiated a new position in Facebook Inc (NASDAQ:FB), purchasing 3.24 million shares of the social media giant.
Tiger Consumer’s fourth largest holding was Netflix Inc. (NASDAQ:NFLX), a new position for the fund, as it purchased 182,098 shares, worth $62.21 million during the fourth quarter. Netflix Inc. (NASDAQ:NFLX) is a $28.13 billion market cap streaming television service. The company’s stock gained 7.91% during last calendar year. Recently, Netflix Inc. (NASDAQ:NFLX) conducted a senior notes offering, comprised of $700 million of 5.50% senior notes due 2022, and $800 million of 5.875% senior notes due 2025.
As we reported previously, Netflix Inc. (NASDAQ:NFLX) is looking to take over the world with an ambitious plan of covering over 200 countries by 2016, from the current 50. A push for the Chinese market should be a great addition to Netflix Inc. (NASDAQ:NFLX) considering the country is home to more than 1.37 billion people and considered to have one of the fastest growing internet penetration levels.
The latest 13F filing from Carl Icahn shows that the investor held around 1.41 million shares of Netflix Inc. (NASDAQ:NFLX) as of December 31, 2014. Other investors betting big on the company include Coatue Management, which reported holding 1.79 million shares as of the end of 2014.
On the fifth spot is Michael Kors Holdings Ltd (NYSE:KORS), in which Tiger Consumer Management cut its stake to 808,351 shares, worth $60.71 million, from around 1.21 million shares. For the fiscal third quarter ended December 27, 2014, the company posted net income of $303.68 million, or $1.48 per share, compared to $229.64 million, or $1.11 per share, for the same quarter in fiscal 2013.
Other investors that see value in the company include Stephen Mandel’s Lone Pine Capital, which held 11.08 million shares as of December 31, 2014. During the fourth quarter, Rob Citrone’s Discovery Capital Management upped its stake in Michael Kors Holdings Ltd (NYSE:KORS) by over 30% to 3.22 million shares.
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