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Top 5 4th-Quarter Buys of Chase Coleman's Tiger Global

Tiger cub’s firm takes a stake in PayPal and Google-parent Alphabet Continue reading... Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tiger Global Management, the firm founded by Julian Robertson (Trades, Portfolio) protege Chase Coleman (Trades, Portfolio), disclosed this week that its top five new buys for the fourth quarter of 2019 were PayPal Holdings Inc. (NASDAQ:PYPL), Alphabet Inc. (NASDAQ:GOOGL), Cardlytics Inc. (NASDAQ:CDLX), XP Inc. (NASDAQ:XP) and Bill.com Holdings Inc. (NYSE:BILL).” data-reactid=”11″>Tiger Global Management, the firm founded by Julian Robertson (Trades, Portfolio) protege Chase Coleman (Trades, Portfolio), disclosed this week that its top five new buys for the fourth quarter of 2019 were PayPal Holdings Inc. (NASDAQ:PYPL), Alphabet Inc. (NASDAQ:GOOGL), Cardlytics Inc. (NASDAQ:CDLX), XP Inc. (NASDAQ:XP) and Bill.com Holdings Inc. (NYSE:BILL).

The firm invests primarily in small-cap securities and the technology sector. According to GuruFocus’ industry overview pages, the information technology sector includes companies that design and develop computer operating systems, software products, hardware products, data storage products, networking products and semiconductors.

As of quarter-end, Tiger Global’s $18.88 billion equity portfolio contains 84 stocks, with turnover of 10%. The technology sector occupies 33% of the portfolio, with Microsoft Corp. (NASDAQ:MSFT) and Facebook Inc. (NASDAQ:FB) ranking in the top five holdings according to a Premium current portfolio feature.

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Other sectors that have at least a 10% weight in the equity portfolio include consumer cyclical, communication services and financial services, with weights of 25.22%, 19.72% and 12.62%.

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="PayPal” data-reactid=”43″>PayPal

Tiger Global purchased 2,448,000 shares of PayPal, giving the stake 1.46% weight in the equity portfolio. Shares averaged $104.36 during the quarter.

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The San Jose, California-based company provides electronic payment solutions to merchants and consumers. GuruFocus ranks PayPal’s profitability 8 out of 10 on several positive investing signs, which include a high Piotroski F-score of 7 and operating margins that have increased approximately 0.30% per year on average over the past five years.

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Other gurus with holdings in PayPal include Ken Fisher (Trades, Portfolio) and fellow tiger cub Philippe Laffont (Trades, Portfolio).

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Alphabet” data-reactid=”80″>Alphabet

Tiger Global purchased 106,360 shares of Alphabet, giving the position 0.79% weight in the equity portfolio. Shares averaged $1,292.54 during the quarter.

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The Mountain View, California-based company operates a wide range of online media platforms, including Google Search and YouTube. GuruFocus ranks Alphabet’s financial strength 9 out of 10 on several positive investing signs, which include robust interest coverage and a solid Altman Z-score of 10.68. Additionally, indicators of high profitability include a four-star business predictability rank and an operating margin that outperforms 80.24% of global competitors.

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Other gurus with holdings in Alphabet include Fisher and PRIMECAP Management (Trades, Portfolio).

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Cardlytics” data-reactid=”121″>Cardlytics

Tiger Global purchased 455,100 shares of Cardlytics, giving the position 0.16% weight in the equity portfolio. Shares averaged $49.46 during the quarter.

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According to its website, the Atlanta-based company increases the relevancy of marketing programs through purchase intelligence. Through insights of where customers spend their money, Cardlytics helps marketers “identify, reach and influence likely buyers at scale.”

GuruFocus data shows that Cardlytics has good short-term financial strength, driven by a cash-to-debt ratio of 2,266.29, outperforming 75.51% of global competitors.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="XP” data-reactid=”136″>XP

Tiger Global purchased 200,000 shares of XP, giving the position 0.04% weight in the equity portfolio.

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The Brazilian low-fee financial services provider made an initial public offering on Dec. 13, 2019. According to a company press release, XP provides two principal types of offerings: financial advisory services for retail clients and an open financial product platform providing access to over 600 investment products.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Bill.com” data-reactid=”150″>Bill.com

Tiger Global purchased 80,000 shares of Bill.com, giving the position 0.02% weight in the equity portfolio.

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The Palo Alto, California-based company provides cloud-based software that simplifies, digitalizes and automates complex back-office financial operations for small and medium-sized businesses. The company staged its initial public offering on Dec. 12, 2019.

Disclosure: No positions.

Read more here:

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="This article first appeared on GuruFocus.
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