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 Take-Two Interactive Software Inc. (NASDAQ:TTWO) 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).
Take-Two Interactive Software Inc. (NASDAQ:TTWO)
Shares held by Tiger Global: 5.84 million
Value of position: $897.55 million
Take-Two Interactive Software Inc. (NASDAQ:TTWO) is a prominent American video game holding company, known for blockbuster franchises like Grand Theft Auto, NBA 2K, and Red Dead Redemption. The company is also a major player in the esports industry, owning 50% of the NBA 2K League. Its revenue is generated through its vast gaming portfolio, capitalizing on the successful franchises that are popular up to this day. Their focus on both traditional gaming and esports ensures a diverse revenue model, which suggests growth potential in spite of the volatility of the gaming market.
Tiger Global holds a notable position in Take-Two Interactive Software Inc. (NASDAQ:TTWO), with 5.8 million shares valued at approximately $897.6 million, representing 3.82% of its portfolio. This position has increased by 4%, which reflects confidence in the firm’s ability to grow within the gaming industry.
Despite a top-line revenue of $5.46 billion for the trailing twelve months, the company has faced profitability challenges, with a significant negative profit margin of -66.4%. The high forward P/E ratio of 80.65 suggests expectations for strong future growth, though the current risks are reflected in its negative earnings. Analysts project a steady sales growth of 5.62% for 2025, and a strong jump of 43.52% for 2026. With a current market cap of $32.59 billion, analysts have set a target price of $185.33, with limited downside potential but a promising upside based on Take-Two Interactive Software Inc. (NASDAQ:TTWO)’s future releases.
Overall, TTWO ranks 9th on our list of Billionaire Chase Coleman’s top stock picks. While we acknowledge the potential of TTWO 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 TTWO 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.
