Julian Robertson’s Tiger Management has a long and proud legacy within the hedge fund industry. Even though the original Tiger Management was closed in 2000, the firm’s impacts are still clearly felt through the work of Tiger Cubs, Tiger Seeds and Tiger Grand Cubs. Peltz International studied several funds in each of these three categories and analyzed their portfolios to compare their holdings and see how Robertson’s stock picking prowess is still impacting the industry. They found some very interesting overlaps in holdings, which they highlighted in a recent white paper.
Peltz explained first that in the late 1990s during the dotcom boom, Tiger Management avoided tech stocks, preferring “old economy” value stocks instead. However, the fund experienced huge redemptions as investors wanted to invest in technology, and Robertson ended up having to close it due to these massive redemptions. Today’s Tiger Cubs, Tiger Seeds and Tiger Grand Cubs are extremely active in the technology sector, as demonstrated by their top holdings.
Microsoft and Facebook led the way in overlaps
Peltz studied the second-quarter 13F filings of 32 Tiger Cubs, Seeds and Grand Cubs and discovered some strong overlaps in their positions. The firm looked at the 10 biggest positions of each of the 32 funds and found that 13 of them had Microsoft in their top 10. They also discovered that 11 of the 32 funds had Facebook in their top 10 holdings. Other repeat names in the top 10 lists of the 32 funds include Netflix, Amazon, Alphabet and Alibaba.
Based on aggregates of the percentage holdings of the 32 funds. Peltz found that Netflix was the highest aggregate holdings, followed by Microsoft and Facebook. The funds which held Netflix during the second quarter were SRS, Teewinot, Matrix Capital, D1 Capital, Valinor, Light Stream, Coatue, Miura Global, Tiger Global and Viking Global. The funds which held Microsoft were JoHo, Tiger Global, Hound Partners, Miura Global, Line Pine, Coatue, SRS, Bloom Tree, Steadfast, Viking, Tiger Eye, Maverick and Falcon Edge.
Uber, iShares and Chewy were among the top new positions
Peltz also found that Uber was the top new position among the 32 Tiger-related funds it studied during Q2. Nine of the funds added Uber during the quarter, while eight of them added iShares. Seven of the Tiger-related funds added Chewy. Uber was the biggest new position for three Tiger-related funds: Tiger Global, Coatue and Valinor.
Based on aggregate percentage held by the funds, Spyder S&P was at the top, followed by Uber and then Adaptive Bio.
Of note, Uber and Chewy were both new IPOs this year, and Chewy quickly became a hotly debated short position among some other funds. Other new positions added by multiple Tiger-related funds included Adaptive Biotechnology, Slack Technology, Boeing, the Real Real and Pinterest.
Top 10 holdings of some top Tiger Cubs, Seeds and Grand Cubs
Coatue: Liberty Broadband, Servicenow, Facebook, Microsoft, Netflix, Anaplan, Adobe, Mastercard, Alibaba, Amazon
Deerfield: Horizon Therapeutics, Horizon Pharma, Mylan, Orchard Therapeutics, Nevro, Homology Medicines, Aerie Pharmaceuticals, Intersect Ent, Immunomedics, Acceleron Pharma
Hound Partners: Cargurus, RPM International, Spirit Aerosystems, Facebook, Microsoft, PG&E, Nexstar Media, Fox, Palo Alto Network, Jeld-Wed Holding
Lone Pine Capital: Adobe Systems, Alibaba, Iqvia Holdings, Microsoft, UnitedHealth, Amazon, Union Pacific, Transdigm Group, Wynn Resorts, Autodesk
Maverick Capital: Humana, DXC Technology, Alphabet, Alibaba, Dupont De Nemours, Centene, Alnylam Pharmaceuticals, Commscope Holding, T-Mobile U.S., Microsoft
Tiger Global: Microsoft, Facebook, JD.com, Amazon, Fiat Chrysler, Apollo Global, Transdigm, Netflix, Alibaba, Spotify
Viking Global: Adaptive Biotechnology, Amazon, Anthem, Facebook, UnitedHealth, Microsoft, Boeing, JD.com, United Technologies, Netflix, Centene
Tiger Eye: GCI Liberty, Iacteractivecorp, Amazon, Atlassian, Smartsheet, Visa, Adobe, Iqvia Holdings, Madison Square Garden, Microsoft
To read Peltz's white paper in its entirety, including everything we didn't cover from it, click here.
This article first appeared on ValueWalk Premium