In this article, we shall be going over the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital. To skip our detailed analysis of Ro’s history, his investment strategy, and hedge fund performance, go directly and see Top 5 Stock Picks of Jesse Ro’s Tiger Legatus Capital.
Jesse Sunho Ro is the founder and portfolio manager at Tiger Legatus Capital, a New York-based hedge fund, in which Ro had an ownership share of 75%. Graduating magna cum laude from the Wharton School of the University of Pennsylvania, Jesse Ro has also worked as the head of the Investment Banking Division at Bear Stearns and Co, as an Investment Analyst at Axial Capital, and a Portfolio Manager at Viking Global Investors.
On June 16, Institutional Investor reported that Tiger Legatus Capital is the latest hedge fund to draw curtains over its operations and shut down indefinitely owing to dismal returns in the first five months of 2022. In a letter penned to investors, Ro informed them of his decision to liquidate the hedge fund and return all capital, adding that the fund structure and declining assets under management “do not provide the duration of capital necessary to successfully continue our investment strategy without compromising returns”.
The Financial Times has reported that Tiger Legatus was down 2.8 percent in the first quarter of 2022. The S&P 500 index cumulatively lost 5% in the same period. It is pertinent to note however that the fund, since its inception, has doubled investors money, and in 2022, has performed much better than its peers.
As of the first quarter of 2022, Tiger Legatus Capital had 12 stocks in its 13F investment portfolio, with large investments in private equities, healthcare and other services. The fund had a portfolio value of $62.4 million in managed 13F securities, a result of a 0.73% increase since the previous quarter, and a top 10 holdings concentration of 98.31%. According to the latest filings by the SEC, Tiger Legatus posted a turnover percentage of 50.0% with 3 new purchases, 2 additional purchases, and reduced holdings in 6 stocks. It has an average holding time of 5.17 quarters, with a discretionary AUM of $203.6 million.
Prominent stocks to feature on the Q1 2022 investment portfolio of Tiger Legatus Capital are Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp. (NYSE:THC). However, in this article, we shall only be going over the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital.
Methodology
The companies listed below have been chosen from the top of Tiger Legatus Capital’s 13F investment portfolio from Q1 2022. They have been ranked based on the stakes Jesse Ro holds in each stock.
Data from 900+ elite hedge funds tracked by Insider Monkey was used to identify the number of hedge funds that hold stakes in each firm.
Top 10 Stock Picks of Jesse Ro’s Tiger Legatus Capital
10. Madison Square Garden Sports Corp. (NYSE:MSGS)
Tiger Legatus Capital’s Stake Value: $2.15M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 3.44%
Number of Hedge Fund Holdings: 40
Based in New York City, New York, Madison Square Garden Sports Corp. (NYSE:MSGS) is an American sports holding company which specializes in the management of professional sports teams. The company was founded in 2010, and is perhaps known most for their management of teams like the Westchester Knicks and the New York Rangers. As of the first quarter of 2022, Silver Lake Partners is the largest shareholder in the stock, owning almost 1.9 million shares worth around $340.8 million. Ro’s Tiger Legatus owns 12,000 shares which have been valued at $2.2 million, a result of the hedge fund manager weakening his hold over the stock by 50%, with Madison Square Garden Sports Corp. (NYSE:MSGS) making up for 3.44% of Tiger Legatus’ investment portfolio for Q1 2022.
Investor interest around the stock seems to have picked up in Q1 2022, with 40 hedge funds long Madison Square Garden Sports Corp. (NYSE:MSGS), compared to 37 hedge funds just a quarter ago.
Longleaf Partners Fund, an investment management firm, mentioned Madison Square Garden Sports Corp. (NYSE:MSGS) in their Q3 2021 investor letter. This is what they had to say:
“While our largest holdings received at least a little market appreciation, our detractors were unreasonably punished based on headline-level misunderstandings. At MSG Sports (NYSE:MSGS) , the Knicks and James Dolan stir strong emotions among finance people in New York, but the fact remains that the Dolan family has made multiple shareholder-friendly moves over the years (which we benefited from as holders of the original incarnation of MSG 10 years ago in the Small-Cap Fund), and we believe that more could be coming for MSGS (NYSE:MSGS) in the near future. In the meantime, the teams’ ups and downs and the lack of any additional news will let the market paint a short-term focused picture. Our ultimate comfort and patience rest in owning the Knicks and the Rangers at a combined enterprise value of $4.8 billion for both. The NBA and NHL comparables, Forbes valuations, and Sportico valuations are all much higher than that for these two teams.”
Hence, like Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp (NYSE:THC), Madison Square Garden Sports Corp. (NYSE:MSGS) makes it to the list of the top 10 stock picks of Tiger Legatus Capital.
9. Vivid Seats Inc. (NYSE:SEAT)
Tiger Legatus Capital’s Stake Value: $2.17M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 3.49%
Number of Hedge Fund Holdings: 16
Founded in 2001, Vivid Seats Inc. (NYSE:SEAT) is an American ticket resale and exchange, public-limited company, headquartered in Chicago, Illinois. The company serves as the middleman between ticket buyers and sellers, reserving a 10% commission off of every ticket sale, with additional charges in the shape of service fees and shipping charges. Jesse Ro’s Tiger Legatus Capital decreased their hold over the stock by 68% in the first quarter of 2022, maintaining only 197,000 shares worth more than $2.17 million. This means that Vivid Seats Inc. (NYSE:SEAT) constitutes 3.49% of Jesse Ro’s 13F portfolio for Q1 2022.
8. Cohn Robbins Holding Corp. (NYSE:CRHC)
Tiger Legatus Capital’s Stake Value: $2.24M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 3.58%
Number of Hedge Fund Holdings: 50
Based in Wilmington, Delaware, Cohn Robbins Holding Corp. (NYSE:CRHC) is a blank check company specializing in effecting mergers, share exchange, asset acquisition, share purchase, reorganization or similar business combinations with one or more entities. Previously named CSR Acquisition Corp, the company was incorporated in 2020 under the name of Cohn Robbins Holding Corp. (NYSE:CRHC). Therefore, in addition to Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp (NYSE:THC), Cohn Robbins Holding Corp. (NYSE:CRHC) features on the list of the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital.
As of the first quarter of 2022, Israel Englander’s Millennium Management is the leading shareholder in the company, with a stake value of more than $52.2 million. Jesse Ro’s Tiger Legatus Capital has purchased more than 225,000 Cohn Robbins Holding Corp. (NYSE:CRHC) shares in the first quarter of 2022, which have been valued at more than $2.2 million.
7. Codere Online Luxembourg (NASDAQ:CDRO)
Tiger Legatus Capital’s Stake Value: $2.8M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 4.41%
Number of Hedge Fund Holdings: 2
Founded in 2021, Codere Online Luxembourg S.A (NASDAQ:CDRO) is an online gaming and sports operator, based in Luxembourg. The company specializes in providing an online sports betting and casino platform through its state-of-the-art website and cell-phone application, and primarily reserves its services for Latin-American markets. As of the first quarter of 2022, Israel Englander’s Millennium Management is the leading stakeholder in Codere Online Luxembourg S.A (NASDAQ:CDRO), owning 607,861 shares worth at around $3.3 million. Jesse Ro’s Tiger Legatus Capital is the second-largest shareholder in the company, with Codere Online Luxembourg S.A (NASDAQ:CDRO) making up for 4.41% of Ro’s investment portfolio.
Like Yandex N.V. (NASDAQ:YNDX), Uber Technologies Inc. (NYSE:UBER), and Tenet Healthcare Corp (NYSE:THC), Codere Online Luxembourg S.A (NASDAQ:CDRO) features on the list of the top 10 stock picks of Jesse Ro’s Tiger Legatus Capital.
6. DraftKings Holdings Inc. (NASDAQ:DKNG)
Tiger Legatus Capital’s Stake Value: $3.4M
Percentage of Tiger Legatus Capital’s 13F Portfolio: 5.58%
Number of Hedge Fund Holdings: 27
Based in Boston, Massachusetts, DraftKings Holdings Inc. (NASDAQ:DKNG) is an American daily fantasy sports contest and sports betting company, which facilitates users to enroll in daily and weekly fantasy sports-related contests and earn money based on individual player performances. In April 2020, DraftKings Holdings Inc. (NASDAQ:DKNG) became a publicly traded company via a reverse merger with SBTech and Diamond Eagle Acquisition Corp. As of the first quarter of 2022, Catherine Wood’s ARK Investment Management is the leading shareholder in the company, owning more than 23.4 million shares, awarding Wood a stake of $455.9 million in DraftKings Holdings Inc. (NASDAQ:DKNG).
Hedge fund sentiment around DraftKings Holdings Inc. (NASDAQ:DKNG) has taken a nose-dive in the first quarter of 2022, with only 27 hedge funds having stakes in the company, compared to 34 in Q4 2021. Jesse Ro’s Tiger Legatus Capital owns 179,000 shares which are worth more than $3.4 million.
Here is what Baron Small Cap Fund noted about DraftKings Holdings Inc. (NASDAQ:DKNG) in their Q4 2021 investor letter, a copy of which can be obtained here.
“Shares of DraftKings, Inc. (NASDAQ:DKNG) fell in the quarter, as stocks of online gaming companies were under pressure. Sports betting and i-gaming are rolling out with great fanfare and success across the country; however, investors seem concerned about competition and margins. Most participants are spending heavily on marketing and promotions, which is cutting into margins. We see this as worthy investment in customer acquisition at a moment in time when revenues are just building. We continue to believe that online sports betting and gaming will be enormous industries, that DraftKings (NASDAQ:DKNG) will be a leading player. We think the business will have high margins as it matures. We believe we are underwriting the business conservatively and see much upside in the long term.”
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Disclosure. None. Top 10 Stock Picks of Jesse Ro’s Tiger Legatus Capital is originally published on Insider Monkey.
