Tiger Global’s Chase Coleman is one of the more successful tiger cubs. Coleman’s Tiger Global has nearly $5 Billion under management and achieved an average 21% return per year since 2001. During the first nine months of 2010 Tiger Global’s flagship fund returned 64%. We analysed the returns of his top 10 positions in his 13F last month. These stocks returned around 5% during the last quarter of 2010. As a result, we can say that Coleman returned at least 70% in 2010 and became one of the best performing hedge funds in 2010.
Coleman is one of the early investors of Facebook, and his share of the company gained more than $1 Billion during the past couple of years. His other private investments include China’s largest online video company Youku.com (YOKU), E-Commerce China DangDang Inc (DANG), Russia’s Digital Sky Technologies, and LinkedIn, a networking website for professionals. LinkedIn already filed to go public in 2011.
In the fourth quarter, Coleman initiated 4 brand new positions: Visa (V), Ctrip (CTRP), Baidu (BIDU), and Liberty Global (LBTYK). Fellow tiger cub Steven Mandel’s Lone Pine is the only other hedge fund we follow which has Ctrip in its portfolio. Tiger Global also increased its positions in 10 other companies. Here’s how they performed:
Company Ticker Return Value (Million) VISA INC V 5.0% 144 CTRIP COM INTL LTD CTRP -5.3% 53 BAIDU INC BIDU 24.6% 53 LIBERTY GLOBAL INC LBTYK 15.5% 38 LIVE NATION ENTERTAINMENT IN LYV -5.8% 136 DUOYUAN GLOBAL WTR INC DGW -26.8% 15 LIBERTY MEDIA CORP NEW LCAPA 10.2% 223 MASTERCARD INC MA 10.5% 158 SEARS HLDGS CORP SHLD 22.3% 18 LIBERTY GLOBAL INC LBTYA 16.2% 236 AMAZON COM INC AMZN 0.2% 180 LONGTOP FINL TECHNOLOGIES LT LFT -13.7% 94 ELECTRONIC ARTS INC ERTS 15.2% 131 XEROX CORP XRX -5.6% 109
The weighted average return for Chase Coleman’s favourite stocks is 5.9% since the end of December, vs. SPY’s 4.8% return. In addition to his brand new $144 Million Visa position, Chase Coleman increased his Mastercard (MA) holdings by almost 30%. Stephen Mandel’s Lone Pine, John Burbank’s Passport Capital, and Richard Perry’s Perry Capital are Mastercard investors too. Amazon is another stock that’s extremely popular among Tiger cubs. John Griffin’s Blue Ridge Capital, Andreas Halvorsen’s Viking Global, Bill Miller’s Legg Mason, and Roberto Mignone’s Bridger Management have Amazon in their portfolios. Another Tiger cub investment was Longtop Financial (LFT). Lee Ainslie’s Maverick Capital and Lone Pine are the other hedge funds with LFT positions. Finally, Electronic Arts (ERTS) is a Tiger favourite Chase Coleman bought more of. Jonathan Auerbach’s Hound Partners, Bridger Management, Blue Ridge Capital, and Lone Pine are the other Tiger cubs with this position.
The rest of Coleman’s portfolio performed slightly better. Coleman had only 29 stocks in his 13F portfolio at the end of December. Here is how they performed since the end of December:
Company Ticker Return Value (Million) APPLE INC AAPL 5.0% 365 VIACOM INC NEW VIA 10.1% 295 DIRECTV DTV 10.8% 253 LIBERTY GLOBAL INC LBTYA 16.2% 236 LIBERTY MEDIA CORP NEW LCAPA 10.2% 223 MERCADOLIBRE INC MELI 3.3% 218 CABLEVISION SYS CORP CVC 8.7% 213 PRICELINE COM INC PCLN 8.6% 182 AMAZON COM INC AMZN 0.2% 180 MASTERCARD INC MA 10.5% 158 DISCOVERY COMMUNICATNS NEW DISCK 4.5% 147 VISA INC V 5.0% 144 LIVE NATION ENTERTAINMENT IN LYV -5.8% 136 ELECTRONIC ARTS INC ERTS 15.2% 231 MAKEMYTRIP LIMITED MAURITIUS MMYT -5.3% 112 XEROX CORP XRX -5.6% 109 TRANSDIGM GROUP INC TDG 12.1% 97 LONGTOP FINL TECHNOLOGIES LT LFT -13.7% 94 GENPACT LIMITED G -7.9% 64 CTRIP COM INTL LTD CTRP -5.3% 53 BAIDU INC BIDU 24.6% 53 LIBERTY GLOBAL INC LBTYK 15.5% 38 COMPANIA CERVECERIAS UNIDAS CCU -10.4% 30 IAC INTERACTIVECORP IACI 8.6% 27 SEARS HLDGS CORP SHLD 22.3% 18 DUOYUAN GLOBAL WTR INC DGW -26.8% 15 COMMSCOPE INC CTV 0.8% 11 POWER ONE INC NEW PWER -9.4% 9 RUBICON TECHNOLOGY INC RBCN 8.4% 4
Coleman really likes media and entertainment stocks. He also likes payment services stocks such as Visa, Mastercard, and MercadoLibre. His 13F portfolio returned 6.3% since the end of December, beating the SPY by 1.5 percentage points. Interestingly, during the fourth quarter Coleman sold all his holdings in 5 stocks: APOL, CISG, GDOT, LMT, and NKE. These stocks had a weighted average return of 13.8% so far this year, vs. SPY’s 4.8% return.