Tairen Capital’s Biggest Moves On Consumer Stocks in Q3

TAL Education Group (NYSE:XRS) forms 6.53% of Tairen Capital’s portfolio as of September 2016. The fund held 391,027 shares of this stock valued at $27.7 million at the end of the third quarter. It is another major company engaged in providing tutoring services for school students in China. It also operates an online education platform through its website – www.jzb.com. This $6.5 billion company has more than doubled in stock price over the last one year.  Analysts are overwhelmingly positive on this stock with 13 out of the 14 analysts covering the stock, rating it as a buy. Mr. Bang Xin Zhang aged 35 is the Chairman and CEO of this company. Most of the other top officers of this company are also quite young in their early 30’s. The company reported $195 million in revenues in the current quarter with a net income of $13 million. The number of funds holding this stock as per our records, increased during the third quarter to 24 from 15 in the quarter earlier. The value of their holding also appreciated to $341 million from $237 million quarter on quarter.

Amazon.com, Inc. (NASDAQ:AMZN) was the 6^th largest holding of Tairen Capital. The fund owned 23,900 shares of the stock valued at $20 million at the end of the third quarter. Besides being one of the world’s leading retailers, Amazon.com, Inc. (NASDAQ:AMZN) also has a strong presence in the cloud computing segment. The company’s Amazon Web Services (AWS) segment focuses on the sales of compute, storage, database and other service offerings for start-ups, enterprises, government agencies and academic institutions. The stock has outperformed the NASDAQ, giving a return of ~17% over the last one year compared to the 2% return given by NASDAQ. Amazon.com Inc. (NASDAQ:AMZN) is aggressively expanding in India which is the fastest growing major economy in the world. According to our system, the hedge funds having long position in Amazon.com Inc. (NASDAQ:AMZN) also increased by 5 to 150 by September end. Their share holding too appreciated to $20 billion from $19 quarter over quarter.

Priceline Group Inc. (NASDAQ:PCLN) formed 2.39% of Tairen Capital’s portfolio at the end of the third quarter. The fund initiated a new position in this company during the third quarter owning 6,900 shares of Priceline Group Inc. (NASDAQ:PCLN). This world’s largest online travel agency has a market value of $82 billion. The company owns some of the world’s largest brands such as booking.com, priceline.com and agoda.com. The company also offers rental car reservations across the world through rentalcars.com. In its most recent quarter, the company reported a healthy operating margin of 22.5% and a net income margin of 13.7%. This stock has been one of the best performing large online stocks, giving a return of more than 200% in the last 5 years. More than 11% of the company’s float as of September 30th was held by 98 funds from our database, from 85 in the second quarter.

Yum! Brands, Inc.(NYSE:YUM) is one the world’s largest owners and franchisers of restaurants in the world. Tairen Capital owned 135,339 shares of the stock valued at $8.8 million at the end of the third quarter, comprising 2% of its portfolio. The fund reduced its position by more than half during this quarter by selling more than 152,000 shares. The company owns leading brands such KFC, Pizza Hut and Taco Bell which have 42,000 restaurants in over 130 countries and territories. The company’s three brands focus on the chicken, pizza and Mexican-style food categories, respectively. The stock has performed poorly during the last one year falling by ~13% and is trading very near to its 52 week low price of $59.57. The company recently carved out it Chinese subsidiary and the two began trading as separate entities from November 1st. Yum! Brands, Inc.(NYSE:YUM) has a market value of $22.7 billion and reported $13 billion in revenues in fiscal year 2015. More than $4 billion worth of shares was held by 42 hedge funds that we track by the end of third quarter. 

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