Hedge Funds Blue Ridge Capital and Maverick Capital are boths run by the managers that are trained by the legendary Julian Robertson at Tiger Funds. They share the similar value investing philosophy, and a few common holdings, too: JPMorgan Chase & Co., Apple Inc., Google Inc., Express Scripts Inc., VISA Inc., Discovery Communications, Inc., Apollo Group Inc.
Blue Ridge Capital was founded by Mr. John Griffin, who was known as legendary investor Julian Robertson's right hand man. Mr. Griffin is adjunct professor of finance at Columbia Business School and a visiting professor at the University of Virginia. He began his career as a financial analyst for Morgan Stanley Merchant Banking Group before moving on to Tiger Management, where he became president in 1993.
Blue Ridge runs a long-short portfolio. For the long positions the firm focuses on the companies that can produce a superior return over a three to five-year time period. For short positions it focuses the stocks that will underperform, or “not make it”, over a one to two year period. The likely reason their shorts work: the underlying companies fail in a poor economic environment. The portfolio is generally net long. The shorts help the portfolio because they can go to zero in a poor market, whereas the longs may go down a lot, but they will come back based on the strength of the underlying businesses.
Because he owns both long and short positions, Mr. Griffin has the luxury of being somewhat indffierent to the macro environment, which he claims that he had “no idea what is going on", and he is not concerned.
Dallas based Maerick Capital was founded by Mr. Lee Ainslee in 1993. Also learned from legendary great Julian Robertson at Tiger Management, Mr. Ainslie has averaged more than 13% a year since from 1995 to 2009. In the market crash of 2008, his fund lost about 30%.
Maverick has six industry sector heads, most of whom are more or less the same age as Mr. Ainslie. They are the experts in their respective industries: consumer, health care, cyclical, retail, financial, and telecommunications, media, and technology. Mr. Ainslie talks to them throughout the day about new and current stocks in the portfolio. With that input, he ultimately makes the final decision.
Maverick runs long only fund and market neutral funds. They pick both long and short positions based on fundamentals.
These are some consensus holdings of the two tiger cub hedge funds:
J.P. Morgan Chase & Co. is a global financial services firm. Jpmorgan Chase & Co. has a market cap of $160.42 billion; its shares were traded at around $40.32 with a P/E ratio of 12 and P/S ratio of 1.6. The dividend yield of Jpmorgan Chase & Co. stocks is 0.5%.
JPM recently reported second-quarter 2010 net income of $4.8 billion, compared with $2.7 billion in the second quarter of 2009. Earnings per share were $1.09, compared with $0.28 in the second quarter of 2009.
Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: “Our net income increased to $4.8 billion, including the benefit from a $1.5 billion reduction of loan loss reserves – which we do not believe represents normal ongoing earnings – partially offset by a charge of $550 million for the U.K. bonus tax.”
Apple Inc. has a market cap of $237.46 billion; its shares were traded at around $260.96 with a P/E ratio of 19.7 and P/S ratio of 5.5. Apple Inc. had an annual average earning growth of 83.1% over the past 5 years.
Google Inc. has a market cap of $154.01 billion; its shares were traded at around $484.35 with a P/E ratio of 21 and P/S ratio of 6.5. Google Inc. had an annual average earning growth of 65.7% over the past 10 years.
Express Scripts, Inc. is one of the largest pharmacy benefit management companies in North America. Express Scripts Inc. has a market cap of $23.2 billion; its shares were traded at around $42.2 with a P/E ratio of 22.5 and P/S ratio of 1. Express Scripts Inc. had an annual average earning growth of 17.8% over the past 10 years.
ESRX Product Revenues for the three months ended June 30, 2010: Network pharmacy revenues increased by $4,357.7 million, or 134.8%, in the three months ended June 30, 2010 over the same period of 2009. Home delivery and specialty revenues increased $1,408.3 million, or 74.6%, in the three months ended June 30, 2010 from the same period in 2009. Approximately $5,533.5 million of the total product revenue increase is due to the increase in volume due to the acquisition of NextRx and the new contract with the DoD.
Visa Inc. has a market cap of $63.13 billion; its shares were traded at around $75.18 with a P/E ratio of 22.4 and P/S ratio of 9.1. The dividend yield of Visa Inc. stocks is 0.7%.
DISCOVERY COMMUNICATIONS INC. is a holding company that conducts operations through its two wholly owned operating subsidiaries, Ascent Media Group, LLC and Ascent Media CANS, LLC, and throught its 66. Discovery Communications, Inc has a market cap of $10.73 billion; its shares were traded at around $37.85 with a P/E ratio of 28.7 and P/S ratio of 3.1. Discovery Communications, Inc had an annual average earning growth of 129.9% over the past 5 years.
Apollo Group, Inc. has been providing higher education to working adults for over 25 years. Apollo Group Inc. has a market cap of $7.23 billion; its shares were traded at around $47.81 with a P/E ratio of 9.4 and P/S ratio of 1.8. Apollo Group Inc. had an annual average earning growth of 26.4% over the past 10 years. GuruFocus rated Apollo Group Inc. the business predictability rank of 4-star.
Consolidated net revenue of Apollo Group for the three months ended May 31, 2010, totaled $1,337.4 million, which represents a 27.7% increase over the third quarter of fiscal 2009. Contributing to the growth in the third quarter was a 13.3% year-over-year increase in University of Phoenix total Degreed Enrollment to 476,500, as well as $75.8 million in net revenue from BPP Holdings, which was acquired in the fourth quarter of fiscal 2009.
To check the consensus holdings of any combination of your favorite Gurus, please go to Aggregated Portfolio of Gurus. This is one of the features that GuruFocus offers to Premium Members of GuruFocus. If you are not a Premium Member, why not Take a 7-Day Free Trial?
Blue Ridge Capital was founded by Mr. John Griffin, who was known as legendary investor Julian Robertson's right hand man. Mr. Griffin is adjunct professor of finance at Columbia Business School and a visiting professor at the University of Virginia. He began his career as a financial analyst for Morgan Stanley Merchant Banking Group before moving on to Tiger Management, where he became president in 1993.
Blue Ridge runs a long-short portfolio. For the long positions the firm focuses on the companies that can produce a superior return over a three to five-year time period. For short positions it focuses the stocks that will underperform, or “not make it”, over a one to two year period. The likely reason their shorts work: the underlying companies fail in a poor economic environment. The portfolio is generally net long. The shorts help the portfolio because they can go to zero in a poor market, whereas the longs may go down a lot, but they will come back based on the strength of the underlying businesses.
Because he owns both long and short positions, Mr. Griffin has the luxury of being somewhat indffierent to the macro environment, which he claims that he had “no idea what is going on", and he is not concerned.
Dallas based Maerick Capital was founded by Mr. Lee Ainslee in 1993. Also learned from legendary great Julian Robertson at Tiger Management, Mr. Ainslie has averaged more than 13% a year since from 1995 to 2009. In the market crash of 2008, his fund lost about 30%.
Maverick has six industry sector heads, most of whom are more or less the same age as Mr. Ainslie. They are the experts in their respective industries: consumer, health care, cyclical, retail, financial, and telecommunications, media, and technology. Mr. Ainslie talks to them throughout the day about new and current stocks in the portfolio. With that input, he ultimately makes the final decision.
Maverick runs long only fund and market neutral funds. They pick both long and short positions based on fundamentals.
These are some consensus holdings of the two tiger cub hedge funds:
| Symbol | Blue Ridge Capital | Maverick Capital | ||||
| Share | Value ($1000s) | Change | Share | Value ($1000s) | Change | |
| JPM | 9,600,000 | 429,600 | 11.3% | 5,375,219 | 240,541 | New |
| AAPL | 1,390,000 | 326,650 | 0% | 1,543,784 | 362,789 | -2.99% |
| GOOG | 480,000 | 272,218 | New | 446,080 | 252,981 | New |
| ESRX | 1,915,000 | 194,870 | 0% | 1,214,737 | 123,612 | -42.22% |
| V | 1,620,700 | 147,532 | 0.93% | 2,694,288 | 245,261 | 48.61% |
| DISCA | 3,982,500 | 134,569 | -25% | 1,223,884 | 41,355 | 48.45% |
| APOL | 805,000 | 49,338 | New | 5,683,992 | 348,372 | 9.63% |
JPMorgan Chase & Co. (JPM, Financial)
Blue Ridge Capital owns 9,600,000 shares of JPM, valued as $430 million as of Mar. 31, 2010, which accounts for 7.03% of his equity portfolio. Maverick Capital owns 5,375,219 shares of JPM, valued as $241 million as of Mar. 31, 2010, which accounts for 2.57% of his equity portfolio. This is a new position forJ.P. Morgan Chase & Co. is a global financial services firm. Jpmorgan Chase & Co. has a market cap of $160.42 billion; its shares were traded at around $40.32 with a P/E ratio of 12 and P/S ratio of 1.6. The dividend yield of Jpmorgan Chase & Co. stocks is 0.5%.
JPM recently reported second-quarter 2010 net income of $4.8 billion, compared with $2.7 billion in the second quarter of 2009. Earnings per share were $1.09, compared with $0.28 in the second quarter of 2009.
Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: “Our net income increased to $4.8 billion, including the benefit from a $1.5 billion reduction of loan loss reserves – which we do not believe represents normal ongoing earnings – partially offset by a charge of $550 million for the U.K. bonus tax.”
Apple Inc. (AAPL, Financial)
Blue Ridge Capital owns 1,390,000 shares of AAPL, valued as $327 million as of Mar. 31, 2010, which accounts for 5.34% of his equity portfolio. Maverick Capital owns 1,543,784 shares of AAPL, valued as $363 million as of Mar. 31, 2010, which accounts for 3.88% of his equity portfolio.Apple Inc. has a market cap of $237.46 billion; its shares were traded at around $260.96 with a P/E ratio of 19.7 and P/S ratio of 5.5. Apple Inc. had an annual average earning growth of 83.1% over the past 5 years.
Google Inc. (GOOG, Financial)
Blue Ridge Capital owns 480,000 shares of GOOG, valued as $272 million as of Mar. 31, 2010, which accounts for 4.45% of his equity portfolio. Maverick Capital owns 446,080 shares of GOOG, valued as $253 million as of Mar. 31, 2010, which accounts for 2.71% of his equity portfolio. Google is new position for both of the hedge funds.Google Inc. has a market cap of $154.01 billion; its shares were traded at around $484.35 with a P/E ratio of 21 and P/S ratio of 6.5. Google Inc. had an annual average earning growth of 65.7% over the past 10 years.
Express Scripts Inc. (ESRX)
Blue Ridge Capital owns 1,915,000 shares of ESRX, valued as $195 million as of Mar. 31, 2010, which accounts for 3.19% of his equity portfolio. Maverick Capital owns 1,214,737 shares of ESRX, valued as $124 million as of Mar. 31, 2010, which accounts for 1.32% of his equity portfolio.Express Scripts, Inc. is one of the largest pharmacy benefit management companies in North America. Express Scripts Inc. has a market cap of $23.2 billion; its shares were traded at around $42.2 with a P/E ratio of 22.5 and P/S ratio of 1. Express Scripts Inc. had an annual average earning growth of 17.8% over the past 10 years.
ESRX Product Revenues for the three months ended June 30, 2010: Network pharmacy revenues increased by $4,357.7 million, or 134.8%, in the three months ended June 30, 2010 over the same period of 2009. Home delivery and specialty revenues increased $1,408.3 million, or 74.6%, in the three months ended June 30, 2010 from the same period in 2009. Approximately $5,533.5 million of the total product revenue increase is due to the increase in volume due to the acquisition of NextRx and the new contract with the DoD.
VISA INC. (V, Financial)
Blue Ridge Capital owns 1,620,700 shares of V, valued as $148 million as of Mar. 31, 2010, which accounts for 2.41% of his equity portfolio. Maverick Capital owns 2,694,288 shares of V, valued as $245 million as of Mar. 31, 2010, which accounts for 2.62% of his equity portfolio.Visa Inc. has a market cap of $63.13 billion; its shares were traded at around $75.18 with a P/E ratio of 22.4 and P/S ratio of 9.1. The dividend yield of Visa Inc. stocks is 0.7%.
This is the complete holding history of V by Blue Ridge Capital:
This is the complete holding history of V by Maverick Capital:
DISCOVERY COMMUNICATIONS, INC (DISCA, Financial)
Blue Ridge Capital owns 3,982,500 shares of DISCA, valued as $135 million as of Mar. 31, 2010, which accounts for 2.2% of his equity portfolio. Maverick Capital owns 1,223,884 shares of DISCA, valued as $41 million as of Mar. 31, 2010, which accounts for 0.44% of his equity portfolio.DISCOVERY COMMUNICATIONS INC. is a holding company that conducts operations through its two wholly owned operating subsidiaries, Ascent Media Group, LLC and Ascent Media CANS, LLC, and throught its 66. Discovery Communications, Inc has a market cap of $10.73 billion; its shares were traded at around $37.85 with a P/E ratio of 28.7 and P/S ratio of 3.1. Discovery Communications, Inc had an annual average earning growth of 129.9% over the past 5 years.
Apollo Group Inc. (APOL, Financial)
Blue Ridge Capital owns 805,000 shares of APOL, valued as $49 million as of Mar. 31, 2010, which accounts for 0.81% of his equity portfolio. Maverick Capital owns 5,683,992 shares of APOL, valued as $348 million as of Mar. 31, 2010, which accounts for 3.73% of his equity portfolio.Apollo Group, Inc. has been providing higher education to working adults for over 25 years. Apollo Group Inc. has a market cap of $7.23 billion; its shares were traded at around $47.81 with a P/E ratio of 9.4 and P/S ratio of 1.8. Apollo Group Inc. had an annual average earning growth of 26.4% over the past 10 years. GuruFocus rated Apollo Group Inc. the business predictability rank of 4-star.
Consolidated net revenue of Apollo Group for the three months ended May 31, 2010, totaled $1,337.4 million, which represents a 27.7% increase over the third quarter of fiscal 2009. Contributing to the growth in the third quarter was a 13.3% year-over-year increase in University of Phoenix total Degreed Enrollment to 476,500, as well as $75.8 million in net revenue from BPP Holdings, which was acquired in the fourth quarter of fiscal 2009.
This is the complete holding history of APOL by Blue Ridge Capital:
This is the complete holding history of APOL by Maverick Capital:
To check the consensus holdings of any combination of your favorite Gurus, please go to Aggregated Portfolio of Gurus. This is one of the features that GuruFocus offers to Premium Members of GuruFocus. If you are not a Premium Member, why not Take a 7-Day Free Trial?
