In this article, we discuss the top 5 stock picks of Julian Robertson’s Tiger Management. If you want to see our detailed analysis of Robertson’s history, investment philosophy, and hedge fund performance, go directly to the Top 10 Stock Picks of Julian Robertson’s Tiger Management.
5. Micron Technology (NASDAQ:MU)
Tiger Management’s Stake Value: $41.5 million
Percentage of Tiger Management’s 13F Portfolio: 8.15%
Number of Hedge Fund Holders: 83
Micron Technology (NASDAQ:MU) is an Idaho-based producer of computer memory and computer data storage solutions, including dynamic random-access memory, flash memory, and USB flash drives.
Julian Robertson’s Tiger Management owned 446,300 shares in Micron Technology (NASDAQ:MU) at the end of December 2021, worth $41.6 million, representing 8.15% of the portfolio of the fund.
Marshall Wace LLP is the biggest stakeholder of Micron Technology (NASDAQ:MU) as of the end of the fourth quarter, according to the data tracked by Insider Monkey. Overall, 83 funds were bullish on Micron Technology (NASDAQ:MU) by the end of the December quarter, compared to 63 in the previous quarter.
In its Q1 2021 investor letter, Bonsai Partners, an asset management firm, highlighted a few stocks and Micron Technology (NASDAQ:MU) was one of them. Here is what the fund said:
“Micron is a manufacturer of memory semiconductor chips. Micron appreciated 17.3% during the quarter.
With the semiconductor cycle in full swing, sentiment continued to improve for major DRAM and NAND suppliers. Spot pricing for DRAM continues its upward march due to supply shocks across the industry and sustained demand levels that continue to outstrip supply.
As a result, Micron showed improving results for the fiscal first quarter, raised guidance intra-quarter for the fiscal second quarter, and offered strong guidance for the fiscal third quarter in both growth and margins.
While the cyclical nature of DRAM hasn’t changed, the cycles themselves continue to become more benign, leading to long-term economic improvement across these businesses. Micron is now continuously profitable, with industry players in a dramatically stronger position than even just five years ago.
The biggest negative surprise in the quarter came from Micron’s exit from its 3D XPoint hybrid memory business. The company also announced its decision to sell its accompanying Utah fab. Fortunately, this development does not alter the investment thesis much since 3D XPoint was an option ticket for future growth. While it’s unfortunate this product didn’t pan out, now is an excellent time to sell a fab, so perhaps it is a blessing in disguise?”
4. SLM Corporation (NASDAQ:SLM)
Tiger Management’s Stake Value: $60.8 million
Percentage of Tiger Management’s 13F Portfolio: 10.17%
Number of Hedge Fund Holders: 18
SLM Corporation (NASDAQ:SLM), commonly referred to as Sallie Mae, is an American publicly traded consumer banking corporation that offers college planning resources, tools, information, and loans.
Tiger Management owns over 3,089,655 shares in SLM Corporation (NASDAQ:SLM) worth more than $60.7 million, representing 11.92% of the fund’s investment portfolio. Overall, 18 funds were bullish on SLM Corporation (NASDAQ:SLM) by the end of the December quarter, versus the 27 funds in the previous quarter.
Among the hedge funds being tracked by Insider Monkey, Jeffrey Ubben of ValueAct Capital is the leading stakeholder in SLM Corporation (NASDAQ:SLM) at the end of the fourth quarter of 2021, with 14,601,031 shares worth approximately $287.2 million.
3. Meta Platforms, Inc. (NASDAQ:FB)
Tiger Management’s Stake Value: $52.3 million
Percentage of Tiger Management’s 13F Portfolio: 10.25%
Number of Hedge Fund Holders: 224
Julian Robertson’s Tiger Management owns 155,400 Meta Platforms, Inc. (NASDAQ:FB) shares, worth $52.3 million as of the fourth quarter, representing 10.25% of the firm’s portfolio.
In the fourth quarter, 224 hedge funds in the database of 924 elite funds tracked by Insider Monkey were long Meta Platforms, Inc. (NASDAQ:FB), holding total stakes worth $31.8 billion. Ken Fisher’s Fisher Asset Management is the most notable Meta Platforms, Inc. (NASDAQ:FB) stakeholder as of December 2021, with 9.6 million shares worth $3.2 billion.
Jefferies Group mentioned Meta Platforms, Inc. (NASDAQ:FB) in its Q3 2021 investor letter. Here is what the firm said:
“While still early, FB is in the process of building the platforms that will ultimately support the development the Metaverse. We look at FB’s position through the lens of 4 current investment initiatives: 1) Oculus VR hardware, 2) Smart glasses, 3) Augmented Reality lenses, and 4) “Horizon Workrooms”
Oculus Virtual Reality hardware: Since acquiring Oculus in 2014 ($2B deal), FB has been focused on developing best-in-class hardware and complementary software & services to support VR experiences. The Oculus Quest 2 is FB’s newest VR headset; it retails at $299 and allows users to play games, try fitness classes, play sports, and watch concerts in virtual environments. Most importantly, Quest 2 is linked to users’ Facebook accounts, which means users can seamlessly connect with friends in virtual environments to play games or spend time together. We believe one of FB’s biggest differentiators in VR is its large array of non-gaming experiences that were designed for Oculus. For instance, users can explore extreme terrain in National Geographic Explore VR, join virtual fitness classes, or simulate being a chef. As FB’s hardware continues to improve and becomes less cumbersome, we would expect a flywheel of greater developer and user adoption of VR…” (Click here to see the full text)
2. Microsoft Corporation (NASDAQ:MSFT)
Tiger Management’s Stake Value: $64.9 million
Percentage of Tiger Management’s 13F Portfolio: 12.73%
Number of Hedge Fund Holders: 262
Microsoft Corporation (NASDAQ:MSFT) is a Washington-based tech giant that provides software, support, and related services.
As of the end of the fourth quarter, 262 hedge funds tracked by Insider Monkey reported owning stakes in Microsoft Corporation (NASDAQ:MSFT). The total worth of these stakes is $75.7 billion. This shows the hedge fund sentiment is positive for the technology company as 250 funds had stakes in the company in the previous quarter, with a total worth of $65.9 billion.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ:MSFT) with 26.8 million shares worth more than $9 billion.
In its Q3 2021 investor letter, Polen Capital discussed its stance on Microsoft Corporation (NASDAQ:MSFT). Here is what the fund said:
“After modest Portfolio activity during the second quarter of 2021, activity increased during the third quarter. We would broadly characterize the various trades into two objectives: 1) managing risk, and 2) managing valuation. In both cases, we aimed to maintain the Portfolio’s growth profile. In aggregate, we believe we were able to increase expected earnings growth while reducing risk and the overall portfolio valuation… We also trimmed Microsoft, which had grown to nearly 10% of the Portfolio. At an 8% weighting, it still represents one of our largest positions.”
1. Blackstone Inc. (NYSE:BX)
Tiger Management’s Stake Value: $76.5 million
Percentage of Tiger Management’s 13F Portfolio: 15.02%
Number of Hedge Fund Holders: 62
Blackstone Inc. (NYSE:BX) is a leading global investment management company based in New York City that specializes in real estate, hedge funds, private equity, leveraged lending, senior debts, and rescue financing.
Julian Robertson’s Tiger Management owned 591,500 shares in Blackstone Inc. (NYSE:BX) at the end of December 2021, worth $76.5 million, representing 15.02% of the fund’s portfolio value.
John Allison’s Unio Capital is the biggest Blackstone Inc. (NYSE:BX) stakeholder from Q4 2021, with 117,333 shares worth $613.7 million. Overall, 62 hedge funds in the database of Insider Monkey were bullish on Blackstone Inc. (NYSE:BX) as of the end of the fourth quarter of 2021, with total stakes amounting to $3.1 billion.
Here is what Artisan Partners has to say about Blackstone Inc. (NYSE:BX) in its Q3 2021 investor letter:
“Among our top Q3 contributors were Blackstone. Investment stalwart Blackstone’s virtuous cycle is in full swing. Throughout Blackstone’s history, excellent investment performance and capital protection have allowed the firm to increase fundraising in existing verticals as well as launch new endeavors. Historically, less than 10% of assets under management mature in any given year, and that number should move lower with continued growth in perpetual capital vehicles. Blackstone’s A+ rated balance sheet and capital-light model are the backbone of its 85% of cash flow distribution policy via a variable quarterly dividend. In short, this is a long-duration fee stream and robust capital-raising engine.”
You can also take a look at Billionaire Stephen Mandel’s Top 10 Stock Picks and Tech Stock Portfolio: 10 Tech Stock Picks from Andrew Immerman and Jeremy Schiffman’s Palestra Capital Management.
