“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.
READ ALSO: Tiger Global’s 15 Long-Term Stock Picks and 10 Best Growth Stocks To Invest In Now
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.
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).
10. Eli Lilly and Co (NYSE:LLY)
Shares held by Tiger Global: 969,800
Value of position: $859.18 million
Eli Lilly and Co (NYSE:LLY) is a leading pharmaceutical company with operations in over 125 countries. It specializes in treatments for diabetes, mental health, and chronic conditions, with top products like Trulicity and Prozac. The company earns revenue through a mix of long-established drugs and innovative new treatments, with a recent focus on Alzheimer’s and obesity.
What sets the company apart is its market dominance in diabetes and its fast growth in obesity treatments, both being rapidly expanding markets. Its continuous investment in R&D positions the firm ahead of many competitors, and as of October 2024, their anti-diabetic treatment Tirzepatide made Eli Lilly the most valuable drug company in the world with a $842 billion market cap.
Financially, Eli Lilly and Co (NYSE:LLY)’s profitability is impressive, with a profit margin of 20.48% and a return on equity of 65.32%. It reported $40.86 billion in trailing twelve-month revenue, with a forward P/E ratio of 34.72, indicating strong growth potential relative to other competitors on the market. Analysts project continued earnings growth, with an average price target of $997 between Wolfe Research, Deutsche Bank, and Barclays, suggesting a substantial upside of around 25.68%.
In Tiger Global’s portfolio, Eli Lilly and Co (NYSE:LLY) ranks as a significant holding, with 969,800 shares valued at $859.2 million, representing 3.66% of the total portfolio. The last quarter marked a 5% increase in the position, highlighting strong confidence in the company’s growth potential.
9. 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.
8. Nvidia Corp (NASDAQ:NVDA)
Shares held by Tiger Global: 9.68 million
Value of position: $1.18 billion
Nvidia Corp (NASDAQ:NVDA) is a global leader in the design and supply of graphics processing units (GPUs), application programming interfaces (APIs), and system-on-a-chip (SoC) units. The company is highly influential in fields like data science, high-performance computing, mobile computing, and automotive technologies, with a dominant market share in the discrete desktop GPU sector. Nvidia also plays a key role in artificial intelligence hardware and software.
Nvidia shows impressive growth, with a market cap of $3.31 trillion and strong profitability, including a profit margin of 55.04% and a return on equity of 123.77%. The company’s revenue for the trailing twelve months stands at $96.31 billion, with a net income of $53.01 billion. The forward P/E ratio of 31.75 suggests strong future earnings potential, especially with a PEG ratio of 0.84 indicating growth at an attractive price.
Nvidia Corp (NASDAQ:NVDA)’s earnings for the current fiscal year are projected to reach $2.95 per share, with revenue estimated at $129.11 billion. Analysts expect strong growth, forecasting a 127% increase in sales for the year, mostly driven by Nvidia’s dominance in AI and gaming. Wall Street analysts have set a 12-month price target for Nvidia at an average of $175.00.
Tiger Global holds 9.68 million shares of Nvidia Corp (NASDAQ:NVDA), valued at approximately $1.18 billion, which constitutes 5.01% of its portfolio.
7. Amazon Com Inc (NASDAQ:AMZN)
Shares held by Tiger Global: 6.42 million
Value of position: $1.20 billion
With a market capitalization of $2.16 trillion, Amazon Com Inc (NASDAQ:AMZN) is a major player in global technology and e-commerce, with a known presence in industries like retail, cloud computing, and digital entertainment. In 2024, Amazon’s revenue reached $620.13 billion, supported by a profit margin of 8.04%.
For Tiger Global Management, Amazon Com Inc (NASDAQ:AMZN) is a core part of its investment portfolio, alongside other tech giants mentioned in this list. Tiger Global holds 6.42 million shares of Amazon, representing a 5.1% weighting of their portfolio, valued at approximately $1.20 billion.
With a net income of $49.87 billion for the trailing twelve months, the company demonstrates strong profitability. Its forward P/E ratio of 33.44 supports this, suggesting it may still offer value relative to its future growth expectations. Investors expect revenue to grow by 10.95% in 2024, with projections of $706.51 billion for 2025.
Many investors see Amazon Com Inc (NASDAQ:AMZN) as a growth stock that continues to evolve, especially in areas like artificial intelligence, logistics, and entertainment. Amazon’s ability to maintain its dominance across multiple sectors and its ongoing innovation make it a company with a solid growth trajectory. The company’s future remains promising, as reflected in its analysts’ target price of $239 per share.
6. UnitedHealth Group Inc. (NYSE:UNH)
Shares held by Tiger Global: 2.37 million
Value of position: $1.38 billion
UnitedHealth Group Inc. (NYSE:UNH) is a diversified healthcare leader, operating two primary brands: UnitedHealthcare, offering health insurance, and Optum, which delivers healthcare services, technology, and pharmacy benefits. With a market cap of $559.88 billion, it is the world’s largest healthcare company by revenue, and a critical player in the U.S. health care system.
Tiger Global Management holds shares of UnitedHealth Group Inc. (NYSE:UNH) valued at $1.38 billion as of the end of September, which accounts for 5.9% of the portfolio. The fund recently increased its position by 1%, reflecting confidence in UNH’s potential for stable returns and future growth.
Due to expanded insurance enrollments in the fall and overall growth across all Optum segments, UnitedHealth Group Inc. (NYSE:UNH)’s recent performance has been robust. Analysts forecast EPS of $27.61 for 2024 and $29.99 for 2025, hinting at steady profitability. The company’s payout ratio of 54.72% supports a $2.10 quarterly dividend, being attractive for income-focused investors.
Considering the forward P/E of 20.41, UnitedHealth offers a reasonable valuation considering its scale and growth. Analysts maintain an average price target of $618.26, with a high of $675, optimistic about the firm’s persistence in capturing market share and delivering earnings growth.
5. Sea Ltd (NYSE:SE)
Shares held by Tiger Global: 16.04 million
Value of position: $1.51 billion
Sea Ltd (NYSE:SE), headquartered in Singapore, is a diversified tech conglomerate operating through four key divisions: Garena (digital entertainment), Shopee (e-commerce), SeaMoney (digital financial services), and Maribank (banking). Founded in 2009, Sea gained prominence with its Free Fire game and has expanded into a global operation employing over 67,000 people.
Tiger Management holds 16,041,335 shares of Sea Ltd (NYSE:SE), valued at $1.51 billion, representing 6.45% of its portfolio. This significant position highlights the fund’s confidence in Sea’s growth trajectory across its business segments.
Sea has delivered remarkable revenue growth, reporting $4.27 billion in its latest quarter, a 23.6% year-over-year increase. The company achieved an EPS of $0.54, a dramatic improvement from $0.06 in the prior year. Revenue projections also suggest significant expansion, with analysts estimating $16.68 billion for 2024 (+28.4%) and $19.41 billion for 2025 (+16.4%). Despite trading at a forward P/E of 46.08, Sea’s PEG ratio of 0.69 suggests it remains undervalued relative to its growth potential. Sea’s current price of $116 is below its valuation estimate of $173.92, offering a compelling buying opportunity, more so during market downturns, because of the firm’s high beta.
4. 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.
3. Alphabet Inc. (NASDAQ:GOOGL)
Shares held by Tiger Global: 10.30 million
Value of position: $1.71 billion
Alphabet Inc. (NASDAQ:GOOGL) is a leading global technology company known for its dominance in internet search and substantial investments in AI. Google Search, its flagship product, consistently holds around 90% of the global market share, driving the majority of Alphabet’s revenue through advertisement, which in the recent quarter, accounted for 75% of the company’s revenue, with an average growth of 11% over the past three quarters. In Tiger Global, the stocks account for 7.29% of the portfolio, with a value of approximately $1.7 billion.
Another division that reported a substantial increase in revenue is Google Cloud, outpacing competitors like Amazon Web Services and Microsoft Azure, with a 35% growth rate and over $11 billion in quarterly revenue. The global AI market presents solid opportunities for Alphabet, projected to grow from $200 billion to $1 trillion by the end of the decade.
Recent earnings indicate ongoing strength, with trailing twelve-month revenue of $339.86 billion and net income of $94.27 billion. Alphabet Inc. (NASDAQ:GOOGL) also expects substantial growth, with analysts forecasting EPS of $8.94 and revenue of $391.04 billion in 2025.
However, at the moment, Alphabet Inc. (NASDAQ:GOOGL) faces regulatory challenges, including antitrust cases related to its dominance in search and advertising. Some potential outcomes, such as the sale of its Chrome browser, raise investor concerns about operational disruptions. Increased competition in AI could also impact future performance, and other AI-focused stocks may offer higher short-term returns.
2. Microsoft Corp (NASDAQ:MSFT)
Shares held by Tiger Global: 5.34 million
Value of position: $2.30 billion
Microsoft Corp (NASDAQ:MSFT) remains a high-quality growth stock, demonstrating solid financial performance and significant market presence. The company holds a strong position in Tiger Global holdings, representing 9.81% of the portfolio, valued at $2.3 billion with 5.34 million shares held. Microsoft enjoys high confidence from major investors, with institutional interest being reflected in 279 hedge fund holders.
The company’s cloud computing business, particularly Azure, has been a key growth driver. Microsoft Corp (NASDAQ:MSFT) surpassed Wall Street’s targets, with revenue rising by $9 billion (17%), fueled by strong performance in Intelligent Cloud and More Personal Computing segments. Operating income increased by 23%, totaling $5.2 billion, with a 15% rise in the cost of revenue driven by Microsoft Cloud and gaming. A key highlight of Microsoft’s recent performance is the increased integration of AI, particularly through its Copilot assistant. Copilot’s expansion into new regions, including India, has increased its potential for driving both productivity gains and revenue growth.
Microsoft Corp (NASDAQ:MSFT)’s average revenue estimate for the current quarter is $68.91 billion, while looking forward, for the full year 2025, revenue is expected to reach $278.7 billion, representing a 13.7% year-over-year growth. For the current quarter (December 2024), analysts project an earnings per share (EPS) of $3.14, up from $2.93 a year ago. For the full year 2025, the average EPS estimate is $13.07, an increase from $11.80 in 2024.
Despite the strong growth in its core segments, Microsoft faces challenges as economic conditions in Europe could slow the growth of Azure, and capacity limitations are constraining the expansion of its AI products. Nevertheless, the company’s investments in AI and its expansion into new markets position it as a stable choice for sustained growth.
1. Meta Platforms Inc. (NASDAQ:META)
Shares held by Tiger Global: 7.47 million
Value of position: $4.27 billion
A dominant player in the social media and technology sectors, Meta Platforms Inc. (NASDAQ:META) is widely recognized for its flagship platforms Facebook, Instagram, and WhatsApp. The company generates revenue primarily through targeted ads, using AI personalization to boost user engagement and optimize ad performance. With a 19% year-over-year revenue increase in Q3 2024, Meta continues to demonstrate strong financial momentum, driven by a higher average ad price (+11% YoY) and operating margin growth to 43%.
Earnings per share (EPS) for 2024 are estimated at $22.6, a significant jump from $14.87 the previous year, with forward-looking estimates for 2025 reaching $25.33. Despite its heavy spending on AI and the metaverse, Meta’s profitability remains solid, with revenue for 2024 projected at $162.97 billion, up 20.8% from 2023.
Meta Platforms Inc. (NASDAQ:META) is now focusing on next-gen internet infrastructure, planning a $10 billion investment in a global fiber optic subsea cable. While still facing some regulatory challenges in the social media domain, and high capital expenditures for the Reality Labs division and AI in general, Meta remains a compelling investment. It is a top choice in Tiger Global Management portfolio, with shares of approximately $4.3 billion in value, accounting for 18.23% of the portfolio.
While we acknowledge the potential of META 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 META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 10 Companies Hoarding Bitcoin Like There’s No Tomorrow and Wall Street Analysts Can’t Stop Talking About These 10 AI Stocks
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.