Will Billionaire Chase Coleman’s Tiger Global’s New Bets on Automotive, Tech, and Consumer Stocks Help It Recover from a Bad Year?

Tiger Global Management added TransDigm Group Incorporated (NYSE:TDG) to its equity portfolio during the fourth quarter and held 428,771 shares worth $106 million at the end of December. Another Tiger Cub, Lee Ainslie’s Maverick Capital Ltd is also bullish on the company, having reported a 777,086-share stake at the end of December. The producer of aircraft components could be in for trouble, following Trump’s pricing restriction on aerospace and defense sectors, since Department of Defense is TransDigm Group Incorporated’s (NYSE:TDG) largest customer. According to a report by Andrew Left of Citron Research, President Trump should target TransDigm going forward because the company seems to have illogically raised the prices of its goods. TransDigm Group Incorporated (NYSE:TDG) reported fiscal 2017 first quarter earnings of $2.57 per share which met analyst estimates. Reported revenues of $814 million exceeded consensus estimate of $804.51 million.

In Domino’s Pizza, Inc. (NYSE:DPZ), Tiger Global initiated a stake that contained 612,289 shares valued at $97.5 million at the end of 2016. Among other investors bullish on the stock are Two Sigma Advisors, Renaissance Technologies and Conatus Capital Management. Even though there has been an increased awareness towards low-carb and healthy food styles, pizza has remained the favorite food of Americans. The company owns 28% of the pizza delivery market and should benefit from the digitization trend, which should reduce operating costs and enable the company to further reduce delivery times which has been its USP. At the end of the third quarter, Domino’s Pizza, Inc. (NYSE:DPZ) provided a long-term outlook, which includes 7%-11% increase in global retail sales and a growth in both domestic (2%-5%) and international (3%-6%) same store sales.

Tiger Global Management exited its position in Apple Inc. (NASADQ:AAPL) as it sold 3.61 million shares during the fourth quarter. On the other hand, billionaire Warren Buffet’s Berkshire Hathaway boosted its stake in Apple by 42.13 million shares to 57.36 million shares at the end of December. For the fiscal first quarter of 2017, Apple Inc. (NASDAQ:AAPL) reported earnings of $3.36 per share, which was in line with analyst expectation. Revenues of $78.35 billion was above consensus estimate of $77.28 billion. During the year end quarter, Apple Inc (NASDAQ:AAPL) became the No.1 seller of smartphones globally, beating Samsung. The company reported selling 78.3 million iPhones above the estimated 76 million units sale, and representing an increase of 5% year-over-year during the October-December period. Apple Inc. (NASDAQ:AAPL) investors have reasons to cheer about the prospects of next iPhone, strong financial performance and an Indian manufacturing base. The stock has already gained over 18% since the beginning of 2017.

Disclosure: None