Chase Coleman (Trades, Portfolio)’s Tiger Global Management recently disclosed its 13F portfolio updates for the fourth quarter of 2021, which ended on Dec. 31.
Coleman founded Tiger Global Management in 2001, when hedge fund legend Julian Robertson (Trades, Portfolio) gave him $25 million to start his own fund. The fund’s strategy is to deploy capital globally, focusing on big tech stocks as well as early- and late-stage venture, post-IPO, private equity and secondary market small caps.
Based on its latest quarterly filing, the firm’s biggest trade was a new stake in Nu Holdings Ltd. (NU, Financial). The rest of the top five trades were sells; Tiger Global Management closed its position in TransDigm Group Inc. (TDG, Financial) and reduced its holdings of Microsoft Corp. (MSFT, Financial), Apollo Global Management Inc. (APO, Financial) and Roblox Corp. (RBLX, Financial).
Nu Holdings
A new investment of 265,981,658 shares in Nu Holdings (NU, Financial) appeared among Tiger Global’s holdings, taking up 5.43% of the equity portfolio. During the quarter, shares traded for an average price of $9.82.
Nu Holdings is a Brazilian digital banking company that identifies itself as an “early-stage technology company.” One of the world’s largest digital banking platforms based on number of customers, Nu offers products across the five financial seasons: spending, saving, investing, borrowing and protecting.
On Feb. 17, shares of Nu Holdings traded around $10.19 for a market cap of $46.52 billion. Since going public in December 2021, the stock is mostly flat, having dropped to a low of $6.75 in January before recovering to around the initial public offering price.
The company has a cash-debt ratio of 14.31 after its successful IPO. The net margin of -38.34% shows the company is not yet profitable. Other gurus invested in the stock include Warren Buffett (Trades, Portfolio), Baillie Gifford (Trades, Portfolio), Frank Sands (Trades, Portfolio) and Catherine Wood (Trades, Portfolio).
TransDigm Group
Coleman’s firm sold its remaining stake of 1,757,245 shares in TransDigm Group (TDG, Financial); previously, it took up 2.11% of the equity portfolio. Shares traded around an average of $625.60 apiece in the three months through the end of December.
TransDigm is a manufacturing company that designs, engineers and produces components, systems and subsystems for the commercial and military aerospace sectors. The Ohio-based company is a global leader in its field, with dozens of locations throughout North America, Europe and Southeast Asia.
On Feb. 17, shares of TransDigm traded around $659.07 for a market cap of $36.54 billion. According to the GF Value Line, the stock is modestly overvalued.
The company has a financial strength rating of 3 out of 10 and a profitability rating of 9 out of 10. Warning signs include growing long-term debt and assets growing faster than revenue, while positive signs include a high Piotroski F-Score of 8 out of 9 and recent insider buys.
Microsoft
The firm reduced its Microsoft Corp. (MSFT, Financial) investment by 35.41% for a remaining stake of 8,482,234 shares, slimming the equity portfolio by 2.52%. Shares averaged $325.12 apiece during the quarter.
Microsoft is a multinational tech giant headquartered in Redmond, Washington. The company develops, manufactures, licenses, sells and supports PCs, consumer software, consumer electronics and related services. It is increasingly transitioning to the software-as-a-service revenue model.
On Feb. 17, shares of Microsoft traded around $293.45 for a market cap of $2.2 trillion. According to the GF Value Line, the stock is fairly valued.
The company has a financial strength rating of 6 out of 10 and a profitability rating of 9 out of 10. The GuruFocus system only finds one warning sign for assets growing faster than revenue; positive signs include expanding operating margins and growing revenue and Ebitda per share.
Apollo Global Management
Tiger Global Management reeled back its Apollo Global Management (APO, Financial) holding by 71.52%, ending the quarter with 6,369,585 shares. During the quarter, shares changed hands for an average of $72.36 apiece.
Apollo is a global alternative investment manager that invests in credit, private equity and real assets. The company raises, invests and manages credit, private equity and real assets funds as well as strategic investment accounts for institutional and individual investors.
On Feb. 17, shares of Apollo traded around $66.33 for a market cap of $37.87 billion. According to the GF Value Line, the stock is fairly valued.
The company has a financial strength rating of 3 out of 10 and a profitability rating of 7 out of 10. Warning signs include poor financial strength and shrinking revenue per share, while positive signs include insider buying and margin expansion.
Roblox
The firm pared back its Roblox (RBLX, Financial) investment by 73.72% for a remaining holding of 4,580,491 shares. Shares traded for around $97.97 apiece during the quarter.
Roblox’s namesake video game is available on phones, tablets and consoles. The game, which is free to download, provides a customizable virtual universe where players create their own avatars and environments. The company generates revenue from the sale of its in-game currency, Robux.
On Feb. 17, shares of Roblox traded around $53.93 for a market cap of $31.60 billion. Since it went public in March 2021, the stock is down 22%.
The company has a financial strength rating of 5 out of 10 and a profitability rating of 1 out of 10. Following it successful IPO, the company has plenty of cash with a cash-debt ratio of 7.9, though negative operating and net margins show it is not yet profitable.
Portfolio overview
As of the quarter’s end, the firm held shares in 169 stocks valued at a total of $45.94 billion. The turnover for the quarter was 15%.
Its top holding was JD.com Inc. (JD, Financial) with 8.20% of the equity portfolio, followed by Microsoft with 6.21% and Sea Ltd (SE, Financial) with 5.55%.
In terms of sector distribution, the firm has slightly more than half of its portfolio in technology stocks, with consumer cyclical and communication services stocks taking up 20% and 17% of the equity portfolio, respectively.
