Yelp Inc (YELP) Gets a Positive Review from This Tiger Cub’s Hedge Fund

Baidu.com is another search-focused holding of Joho’s, making up over 6% of the fund’s 13F. While at Tiger Management, Karr lived in Tokyo and had a specific focus on Asian equities, and so it is no surprise that he has at least one Asian company in his portfolio. This Chinese search company is only around a tenth the size of Google, but has the best expected growth of Joho’s tech companies at a 39% expected EPS CAGR. Baidu is quite the value play when you compare its PEG of 0.52 to Google’s 1.40. Interestingly, Ken Fisher, founder of Fisher Asset Management and long-time Forbes columnist, dumped over 60% of his stake last quarter (see Ken Fisher’s other intriguing picks).

Facebook Inc (NASDAQ:FB) shares are down 30% since the company’s IPO debacle in May. At a trailing P/E of 250x, the tech company looks to be quite rich, but its 40x forward P/E tells us that future growth is a bit cheaper at the moment. Given many investors’ concerns over mobile monetization, we would prefer to stay on the sidelines. If the social network can begin executing mobile better, it may well meet its expected EPS growth rate of 27% per year over the next half-decade. Multi-billionaire George Soros was a major supporter of Facebook last quarter (see George Soros’ newest picks).

The only stock that Joho sold off completely last quarter was Zynga Inc (NASDAQ:ZNGA). This tech company has had a much harder time since going public in comparison to other high profile IPOs like Facebook and Yelp. Zynga is down almost 75% since its December 2011 IPO, and continues to trade at a forward P/E of 175x. Zynga has been pressured given its over-reliance on Facebook, but it will become less linked with the social media giant beginning next spring, and it will also turn toward possible growth opportunities in overseas gambling. Steven Cohen, founder of SAC Capital, also dumped all of his shares during the third quarter (check out Steven Cohen’s key picks).

To recap: we believe that Joho is sticking to their philosophy of running a concentrated equity fund that focuses on high-profile, high-growth stocks. Yelp is Joho’s newest addition to an overweighed tech portfolio and provides the fund with a robust growth opportunity. Two of Joho’s stocks also made our list of top ten tech stocks loved by hedge funds (see our entire Top Ten here).