Here's What $6.4 Billion Tiger Global Has Been Buying
Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.
Today, let's look at Tiger Global Management. The company's reportable stock portfolio totaled $6.4 billion in value as of March 31, 2013 and contained just a few dozen stocks. Indeed, the top 10 holdings make up about 50%of the overall portfolio's value.
So what does Tiger Global's latest quarterly 13F filing tell us? Here are a few interesting details:
The biggest new holdings are Liberty Media and Dollar General. Other new holdings of interest include Stratasys . 3-D printing specialist Stratasys has been surging in recent years, posting double-digit (and accelerating) revenue growth and topping analyst estimates. Bulls like strong sales growth for the composite material used in its printers, but bears worry that the stock has gotten ahead of itself and don't like a drop in free cash flow.
Among holdings in which Tiger Global Management increased its stake were 3D Systems and Baidu . Clearly, Tiger Global is bullish on 3-D printing, as that's also the focus of 3D Systems. The company's last earnings report was a bit mixed, with revenue up 31% and net income dropping. But 3-D printing is still in its infancy, with much promise. Some see the shares as a bit rich now, though, and there has been insider selling.
Chinese search engine giant Baidu has been hurt by China's slowing economic growth. Its last earnings report was disappointing (despite many impressive numbers), but its long-term prospects remain solid, as much of China and Asia has yet to get online. Some see the stock as cheap now, but the company does have serious competition. Meanwhile, Baidu is broadening its operations by expanding into video.
Tiger Global Management reduced its stake in lots of companies, including specialty chemical company W. R. Grace , which is getting close to emerging from Chapter 11 bankruptcy protection. Its last earnings report featured revenue and earnings below the company's own expectations, but that didn't faze Goldman Sachs, which recently upgraded Grace stock to its Conviction Buy list, citing its cash flow and a strengthening construction market.
Finally, Tiger Global's biggest closed positions included Starz and Yandex N.V. Other closed positions of interest include Mellanox . Mellanox, based in Israel, is a semiconductor company. Its last few years were quite strong, as it invested heavily in cloud computing and beat Wall Street estimates, though its latest earnings report was mixed. Mellanox is buying Kotura, a high-speed networking technology company. Some wonder whether Mellanox's best years are behind it, as it faces significant competition.
We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.
3D Systems is at the leading edge of a disruptive technological revolution, with the broadest portfolio of 3-D printers in the industry. However, despite years of earnings growth, 3D Systems' share price has risen even faster, and today the company sports a dizzying valuation. To help investors decide whether the future of additive manufacturing is bright enough to justify the lofty price tag on the company's shares, The Motley Fool has compiled a premium research report on whether 3D Systems is a buy right now. In our report, we take a close look at 3D Systems' opportunities, risks, and critical factors for growth. You'll also find reasons to buy or sell the stock today. To start reading, simply click here now for instant access.
The article Here's What $6.4 Billion Tiger Global Has Been Buying originally appeared on Fool.com.Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Baidu and Stratasys. The Motley Fool recommends Goldman Sachs. It recommends and owns shares of 3D Systems, Baidu, and Stratasys and has the following options on 3D Systems: short Jan. 2014 $36 calls and short Jan. 2014 $20 puts. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.