Chase Coleman specializes in consumer services, technology and small capitalization companies. From time to time, Coleman deviates from his regular investments into real estate and fixed income investments on both the short and long side. As can be seen in his top 5 holdings, all of those equities are technologically oriented in some manner.
As a result of his investment strategies, Coleman’s returns have been largely positive year to year. Between 2001 and 2007, Coleman averaged returns of 47%, with a 70% return in 2007. However, in 2008 and 2009, he returned a negative return of 26% and 1% respectively. Comparatively speaking, for his best year in 2007, the benchmark returned 5.61%, while conversely, for his worst year in 2008, the benchmark returned a negative return of 37%.
In terms of the breakdown of Tiger Global Management, most of the fund is invested into consumer services, at 61.40% of the composite portfolio. For the most part, the fund remained relatively stable, with the biggest changes originating in a 6% and 3.4% reduction in consumer goods and health care. On the other hand, the greatest additions were in the consumer services and technology sector at 2.40% and 1% respectively.
|Overall Portfolio Composition||Q1 2011||Q4 2010||%Change|
In terms of the holdings of the fund, 40.17% of it is concentrated into the following five equities. The overall portfolio manages approximately $4.1 billion invested into 33 equities as of Q1 of 2011. As mentioned earlier, the top five holdings of the portfolio are invested into technological equities and consumer oriented businesses.
|Top Five Holdings for Q1||Symbol||Composition||Shares||Value|
|Value of Portfolio||4,110,000,000|
Apple develops and markets a variety of products ranging from software to flagship products such as the iPod and iPad. Apple trades at $338.04 with a market capitalization of $311.43 billion. Coleman paid an average of $202.38 per share, yielding a potential capital gain of 67.03%. Apple is the largest holding of Tiger Global Management, comprising approximately 12% of the entire firm. Between Q4 of 2010 and Q1 of 2011, Coleman increased his holdings of Apple by 24.97%.
Apple has a P/E ratio of 16.11, a P/B ratio of 6.58, and a P/S ratio of 4.87. With reported revenues of $65 billion, Apple earned $14 billion, a 21% margin. Their earnings for the year thus approximated $20.98 per share. For the last 5 years, Apple grew its revenues and earnings by 32.1% and 56.4% annually.
Apple recently demonstrated their next generation OS, the Lion at the company’s annual Worldwide Developers Conference. In other news, Samsung Electronics is attempting to force Apple to give up models of the iPhone and iPad in a patent infringement lawsuit. This parallels a similar lawsuit filed by Apple against Samsung with respect to the Samsung Galaxy phones.
GuruFocus rated AAPL with the business predictability rank of 1 star.
Viacom provides entertainment media via several mediums through two operational divisions: Media Networks and Filmed Entertainment. Some of their most well known brands are MTV, BET, and Nickelodeon. Viacom shares currently trade at $49.20, with a market capitalization of $28.79 billion. Coleman increased his holdings of Viacom by 6.24%, and paid an average price of $33.92 per share, a potential capital gain of 45%. Viacom is the second largest holding of the firm, comprising 8.95% of the overall portfolio.
Viacom has a P/E ratio of 15.52 and a P/B ratio of 3.25. For this fiscal year ending in 9/10, they reported revenues of $9.3 billion with a margin of 9.10%. Their current dividend yield stands at 2.04%, with earnings at $3.17 per share. Historically, over the last 5 years, Viacom has grown its earnings and revenues by 21.3% and 35.2% respectively.
Viacom announced in March the initialization of a $500 million debt offering due in 2017. In addition, the current dividend yield was increased 67% by the Board of Directors to $.25 from $.15. In other developments, Viacom, in cooperation with Endemol, is launching a new entertainment brand called Viacom Blink!, aimed at women between the ages of 16 and 49.
Liberty Global (LBTYA)
Liberty Global provides internet and telephone services primarily in Europe, Chile, and Australia. Their shares currently trade at $43.30 with a market capitalization of $10.95 billion. Coleman reduced his overall holdings of LBTYA by 2.73%, and paid an average price of $26.78 per share, a capital gain of 61.6%. Liberty Global is the third largest holding of the fund, comprising 6.53% of the entire fund.
Liberty Global has a P/B ratio of 3.50 and a P/S ratio of 1.21. For Liberty’s fiscal year ending in 12/10, revenues of $9 billion were reported. However, the net income for the year was a loss of $876 million. Liberty Global historically has grown its revenues and free cash flow by 31% and 11% annually for the last 5 years.
Foxtel recently offered LBTYA $2 billion for their holdings of AUSTAR, a rival Australian company. In other news, Germany is attempting to review antitrust implications with Liberty’s Global attempt to buy Germany’s third largest cable operator.
MercadoLibre is an online shopping provider catering to Latin American and Spanish speaking consumers. Their shares currently trade at $82.16 with a market capitalization of $3.63 billion. The overall position of MELI remained unchanged quarter to quarter, with an average price of $7.85 per share in the fund. This value represents a large potential capital gain of 946%.
MercadoLibre has a P/E ratio of 60, a P/B ratio of 23.05, and a P/S ratio of 18.26. Revenues for the year were reported at $216 million, with a net income at $56 million, a 25.85% margin. The dividend yield of MELI stands at .39%, with earnings at $1.37 for the year. Between 2009 and 2010, MELI grew revenues and earnings by 25.3% and 69.3% respectively.
Analysts at RBC capital placed a price target of $95 on MELI, a potential capital gain of 15.6% from its current trading price, and a rating of “OUTPEFORM.” In terms of internal changes, MercadoLibre announced the appointment of Pedro Arnt as the new company CFO.
Amazon is an online retailer connecting numerous buyers to sellers through its North America and International segment. In addition to the fees Amazon collects from sales and purchases, Amazon generates revenue through its own product line including items such as wallpaper, carpet, hair accessories and arguably their most well known flagship, the Kindle. Amazon trades at $185.69 currently, with a market capitalization of $83.94 billion. Coleman increased his holdings of AMZN by 41.01% quarter to quarter, with an average acquisition price of $148.62 per share, a potential capital gain of 25%.
Amazon has a P/E ratio of 80.46, a P/B ratio of 12.37, and a P/S ratio of 2.49. Their earnings for the year were reported at $2.31 per share, with a net margin of 3.35% on revenues totaling $34 billion. Earnings and revenues has grown by 33.8% and 29.7% respectively annually for the last 5 years.
Citigroup placed a “BUY” rating on AMZN, with a price target of $240. Amazon, along with other online retailers, is currently in the midst of an attempt to prevent the nationwide implementation of sales taxes on online sales and purchases. In terms of product news, Amazon is releasing a new cheaper Kindle whose costs are counterbalanced by advertisements on the screen.
GuruFocus rated AMZN with the business predictability rank of 1 star.