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Hedge Fund Lone Pine Capital Reports Second Quarter Trades

gurufocus

gurufocus

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Steve Mandel is the manager and founder of the hedge fund Lone Pine Capital, a long-short equity money manager. A graduate of Harvard Business School, he is regarded as one of the "Tiger Cubs" due to his tenure under legendary hedge fund investor Julian Robertson at Tiger Funds. As such, he employs a similar long-short approach that invests primarily in stocks, and Mandel has outperformed the S&P 500 by 20% each year for the past eleven years.

His success stems from his bottom-up investing strategy that focuses on a company's underlying fundamentals and less on overarching macroeconomic events. He strives to understand a company's practices, operations, and future growth to decide on whether to long or short the stock. Compared to other managers, Mandel holds his positions for a short amount of time, quickly moving in and out of positions. As of 06/30/2011, Lone Pine Capital owns 60 stocks with a total value of $13.3 billion. These are the details of the buys and sells that have the impact to portfolio of more than 1%.

Stephen Mandel, like several other money managers, is often referred to as a “tiger-cub”. This originated from his tenure with renowned investor, Julian Robertson at Tiger Management Corporation. Julian Robertson is credited as one of the earliest founders of hedge funds. From his initial startup of $8 million, he made over $22 billion upon that capital by utilizing talented men and women as analysts from around the country. Many these analysts, who are now so eloquently referred to as “tiger-cubs”, would go on to launch their own hedge funds, When Julian Robertson shut down Tiger Management in 2000, he decided to further develop, mentor, and fund several of those that he felt were his brightest analysts. These analysts would then be known as “tiger-seeds”, and like their predecessors, would launch their own funds.

As a whole however, the successes of these funds cannot be described as consistent. The cubs are generally more successful then the seeds, perhaps due to their direct exposure and tutorage under Robertson. Several of the seeds posted losses in their first year, while others are under investigation for securities misconduct. It has been reasoned that these unspectacular results lie in the long-short equity strategy that Robertson utilized. The long-short equity strategy invests primarily in stocks, and as such, is more exposed to global macro events. Though fundamentals are pivotal to value investing, these funds experience greater movement in their positions due to the cyclical nature of the market. In addition, these new seeds are receiving less and less mentorage from Robertson, and as such, are not of the same veteran caliber as the cubs were when they launched their own funds.

This is the portfolio chart of Steve Mandel. You can click on the legend of the chart to show/hide buys, sells, or holdings. Each ball on the chart represents a position in the portfolio. You can move your mouse on the balls to see the details of each position and click to see the details of all guru trades with this position.



For the details of Steve Mandel's stock buys and sells, go to http://www.gurufocus.com/StockBuy.php?GuruName=Steve+Mandel

This is the sector weightings of his portfolio:

Consumer Services 28.1%
Technology 27.9%
Consumer Goods 11.1%
Industrials 10.5%
Health Care 7.7%
Not Assigned 5.8%
Financials 4.5%
Oil & Gas 2.8%
Basic Materials 1.6%


These are the top 5 holdings of Steve Mandel

  1. Apple Inc. (AAPL) - 1,977,263 shares, 4.9923% of the total portfolio. Shares added by 27.13%
  2. Cognizant Technology Solutions Corp. (CTSH) - 8,605,660 shares, 4.7473% of the total portfolio. Shares added by 35.43%
  3. Dollar General (DG) - 16,190,141 shares, 4.1271% of the total portfolio. Shares added by 2.55%
  4. Ralph Lauren Corp. (RL) - 4,085,898 shares, 4.0756% of the total portfolio. Shares added by 14.04%
  5. Crown Castle International Corp. (CCI) - 12,086,465 shares, 3.7083% of the total portfolio.


Added: Monsanto Co. (MON)

Steve Mandel added to his holdings in Monsanto Co. by 118.71%. His purchase prices were between $63.17 and $74.05, with an estimated average price of $67.48. The impact to his portfolio due to this purchase was 1.51%. His holdings were 5,082,322 shares as of 06/30/2011.

Added: Wabco Holdings (WBC)

Steve Mandel added to his holdings in Wabco Holdings by 212.83%. His purchase prices were between $60.13 and $73.85, with an estimated average price of $66.49. The impact to his portfolio due to this purchase was 1.43%. His holdings were 4,058,927 shares as of 06/30/2011.

Added: Cognizant Technology Solutions Corp. (CTSH)

Steve Mandel added to his holdings in Cognizant Technology Solutions Corp. by 35.43%. His purchase prices were between $65.54 and $82.9, with an estimated average price of $76.02. The impact to his portfolio due to this purchase was 1.24%. His holdings were 8,605,660 shares as of 06/30/2011.

Added: Apple Inc. (AAPL)

Steve Mandel added to his holdings in Apple Inc. by 27.13%. His purchase prices were between $315.32 and $353.009, with an estimated average price of $337.64. The impact to his portfolio due to this purchase was 1.07%. His holdings were 1,977,263 shares as of 06/30/2011.

Added: New Oriental Education & Technology Group (EDU)

Steve Mandel added to his holdings in New Oriental Education & Technology Group by 248.33%. His purchase prices were between $24.86 and $32.0475, with an estimated average price of $28.33. The impact to his portfolio due to this purchase was 1.05%. His holdings were 1,748,613 shares as of 06/30/2011.

New Purchase: Google Inc. (GOOG)

Steve Mandel initiated holdings in Google Inc.. His purchase prices were between $474.88 and $591.8, with an estimated average price of $527.63. The impact to his portfolio due to this purchase was 3.17%. His holdings were 831,332 shares as of 06/30/2011.

New Purchase: Bed Bath & Beyond Inc. (BBBY)

Steve Mandel initiated holdings in Bed Bath & Beyond Inc.. His purchase prices were between $48.49 and $58.02, with an estimated average price of $54.43. The impact to his portfolio due to this purchase was 1.83%. His holdings were 4,168,447 shares as of 06/30/2011.

New Purchase: Yandex N.v. (YNDX)

Steve Mandel initiated holdings in Yandex N.v.. His purchase prices were between $30.27 and $38.84, with an estimated average price of $32.83. The impact to his portfolio due to this purchase was 1.68%. His holdings were 6,278,312 shares as of 06/30/2011.

New Purchase: Dollar Tree Inc. (DLTR)

Steve Mandel initiated holdings in Dollar Tree Inc.. His purchase prices were between $55.69 and $67.16, with an estimated average price of $60.52. The impact to his portfolio due to this purchase was 1.55%. His holdings were 3,102,264 shares as of 06/30/2011.

New Purchase: Liberty Media Corp. Capital Common Series A (LCAPA)

Steve Mandel initiated holdings in Liberty Media Corp. Capital Common Series A. His purchase prices were between $73.45 and $91.14, with an estimated average price of $82.28. The impact to his portfolio due to this purchase was 1.38%. His holdings were 2,136,155 shares as of 06/30/2011.

New Purchase: American Tower Corp. Cl A (AMT)

Steve Mandel initiated holdings in American Tower Corp. Cl A. His purchase prices were between $49.52 and $55.48, with an estimated average price of $51.9. The impact to his portfolio due to this purchase was 1.34%. His holdings were 3,413,095 shares as of 06/30/2011.

New Purchase: Netflix Inc. (NFLX)

Steve Mandel initiated holdings in Netflix Inc.. His purchase prices were between $228.16 and $273.702, with an estimated average price of $247.56. The impact to his portfolio due to this purchase was 1.26%. His holdings were 639,421 shares as of 06/30/2011.

New Purchase: Teradata (TDC)

Steve Mandel initiated holdings in Teradata. His purchase prices were between $49.49 and $59.58, with an estimated average price of $54.01. The impact to his portfolio due to this purchase was 1.25%. His holdings were 2,752,711 shares as of 06/30/2011.

Reduced: Davita Inc. (DVA)

Steve Mandel reduced to his holdings in Davita Inc. by 91.9%. His sale prices were between $82.7 and $88.18, with an estimated average price of $85.35. The impact to his portfolio due to this sale was -1.3%. Steve Mandel still held 167,405 shares as of 06/30/2011.

Reduced: Yum! Brands Inc. (YUM)

Steve Mandel reduced to his holdings in Yum! Brands Inc. by 30.23%. His sale prices were between $49.58 and $56.69, with an estimated average price of $53.55. The impact to his portfolio due to this sale was -1.29%. Steve Mandel still held 7,282,003 shares as of 06/30/2011.

Sold Out: Jp Morgan Chase (JPM)

Steve Mandel sold out his holdings in Jp Morgan Chase. His sale prices were between $39.49 and $47.64, with an estimated average price of $43.33.

Sold Out: Mastercard Cl A (MA)

Steve Mandel sold out his holdings in Mastercard Cl A. His sale prices were between $253.55 and $309.7, with an estimated average price of $274.05.

Sold Out: Citrix Systems Inc. (CTXS)

Steve Mandel sold out his holdings in Citrix Systems Inc.. His sale prices were between $72.59 and $87.62, with an estimated average price of $79.6.

Sold Out: Scripps Networks Interactive (SNI)

Steve Mandel sold out his holdings in Scripps Networks Interactive. His sale prices were between $44.52 and $51.99, with an estimated average price of $49.15.

Sold Out: Mead Johnson Nutrition Co. (MJN)

Steve Mandel sold out his holdings in Mead Johnson Nutrition Co.. His sale prices were between $58.26 and $68.37, with an estimated average price of $64.49.

Sold Out: Lincare Holdings Inc. (LNCR)

Steve Mandel sold out his holdings in Lincare Holdings Inc.. His sale prices were between $28.33 and $31.61, with an estimated average price of $30.1.

Sold Out: Informatica Corp. (INFA)

Steve Mandel sold out his holdings in Informatica Corp.. His sale prices were between $51.2 and $58.66, with an estimated average price of $54.4.

Added: Accretive Health (AH)

Steve Mandel added to his holdings in Accretive Health by 309.82%. The impact to his portfolio due to this purchase was 1.03%. His holdings were 6,293,891 shares as of 06/30/2011.

Added: Goodrich Corp. (GR)

Steve Mandel added to his holdings in Goodrich Corp. by 49.03%. The impact to his portfolio due to this purchase was 1.47%. His holdings were 6,504,218 shares as of 06/30/2011.

About the author:

gurufocus
GuruFocus - Stock Picks and Market Insight of Gurus

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