Steve Mandel’s Lone Pine Capital is launching a new hedge fund after a long time and again making a trademark choice in using the name, reports Stephen Taub for II Alpha. Lone Tamarack will be the fund’s first new long/short fund in over 10 years. Just like pine, tamarack—also called larch—is a conifer, extending Mandel’s fascination with trees.
Lone Pine to launch $2 billion fund
Lone Pine Capital manages $22 billion in assets and Lone Tamarack will begin managing money in January next year, with an estimated initial base of $2 billion. The hedge fund already manages Lone Cypress, Lone Kauri and Lone Cascade. The last fund Mandel launched was Lone Cascade in 2005, which was a long-only investment vehicle.
Stephen Mandel, Jr.’s Lone Pine Capital is launching a new fund at the beginning of the year.
The fund, to be named Lone Tamarack, will be the tiger cub’s first new long-short equity fund in more than a decade. It is expected to have $2 billion under management when it begins business at the beginning of January, according to an investor who has seen marketing materials for the new fund. Mandel’s new long-short fund comes around the same time several other tiger cubs have been bringing new long-only funds to market.
Lone Pine doing great in long-only fund
Lone Tamarack is going to be a subset of Lone Cypress and Lone Kauri, in stock picks the three funds will likely have 80% overlap, reports II Alpha. Lone Cypress and Lone Kauri are up 14% through September this year, whereas Lone Cascade has gained 23% YTD.
Lone Pine Capital top long positions have done well this year, Priceline.com Inc (NASDAQ:PCLN) is up 60%, Cognizant Technology Solutions Corp (NASDAQ:CTSH) up 13%, Google Inc (NASDAQ:GOOG) up 22%, eBay Inc (NASDAQ:EBAY) up 6% and The Gap Inc. (NYSE:GPS) has gained 29% this year. We have covered Mandel’s short portfolio in Europe, the fund’s negative bet in Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) did not work out very well. Take a deeper look at what Lone Pine Capital has been betting against here. The fund is also shorting a few names in Japan.
New launches from other tiger cubs
Tiger cubs have been particularly green in terms of fund launches this year—Tiger Global Management launched a long-only fund which would have been operational on October 1st. Hound Partners, a tiger grandcub, was thinking over launching a long-only fund. Coatue Management, founded by Philippe Laffont, also launched a long-only vehicle this year.