Tiger Consumer Management

Tiger Consumer Management was started by Patrick McCormack, a former analyst at Tiger Management. McCormack’s hedge fund, is a ‘Tiger Fund, and was seeded by Julian Robertson, CEO of Tiger Management. The hedge fund currently has approximately $2 billion in assets under management.

Here’s a look at the recent 13F filing by Tiger Consumer Management Llc for its holdings as of June 30, 2012.

Overall fund movement for June 30, 2012

  • Market value – up by about $90 million
  • New investments – 6 stocks
  • Added to existing – 17 stocks
  • Completely sold – 10 stocks
  • Partly sold from existing – 3 stocks
  • Percentage of top 10 holdings – 44.5 percent

Sectors focus

  • The holdings are concentrated in Services, Technology, Basic Materials, Consumer Goods, Financials sectors.

Top 5 Holdings as a percentage of portfolio

  • Dollar General Corp. (NYSE:DG) – 4.95%
  • Michael Kors Holdings Ltd (NYSE:KORS) – 4.94%
  • Kraft Foods Inc (NASDAQ:KFT) – 4.91%
  • McKesson Corporation (NYSE:MCK) – 4.86%
  • Google Inc (NASDAQ:GOOG) – 4.85%

Top 5 New Stocks Added as a percentage of portfolio

  • Sherwin-Williams Company (NYSE:SHW) – 3.45%
  • Phillips-Van Heusen – 2.89%
  • Facebook Inc (NASDAQ:FB) – 2.46%
  • Wolverine World Wide, Inc. (NYSE:WWW) – 1.93%
  • Fifth & Pacific Companies Inc (NYSE:FNP) – 1.8%

Top 5 Stocks Sold Out as a percentage of previous portfolio

  • DIRECTV (NASDAQ:DTV) – 3.85%
  • MSC Industrial Direct Co Inc (NYSE:MSM) – 3.07%
  • Estee Lauder Companies Inc (NYSE:EL) – 2.93%
  • Life Time Fitness, Inc. (NYSE:LTM) – 2.5%
  • Liz Claiborne – 2.34%

Readers may also be interested in Statistics of the fund’s performance as of the end of July:

According to sources with direct knowledge of the matter, the fund was down around 2%, as of Q2 2012 against 2.8% of S&P 500. For the year, the fund has a positive return on 7% compared to 9.5% for S&P 500. Since inception in 2000, Tiger Consumer has returned 8.4% annually, versus the S&P500 return of 1.3% CAGR. The contribution of various components to the fund’s year to date gross return of around 8 percent are 3 percent from alpha, 2 percent from beta, and around 4 percent from leverage.

Fund strategy

The performance of the fund is anchored to successful short positions created on individual stocks, which are preferred against ETF or benchmark indices. According to McCormack, an emphasis on short market alpha is much more desirable in a bearish market rather than in an up-trending one.