As of Nov. 9, hedge fund manager, Chase Coleman, of New York-based Tiger Global Management LLC, has significantly enlarged his stake of discount deals provider, Groupon Inc. (NASDAQ:GRPN), according to GuruFocus Real Time Picks.
Stocking up on Groupon stretched Coleman’s ownership to 9.9 percent, inflating his latest holding to 65 million shares.
Coleman first reported Groupon as a new buy in his third quarter portfolio updates, initially starting off with only 1.3 million shares at an average price of about $6.25. Currently, Groupon stock is selling at $3.45 per share, and is up almost 12 percent for this morning’s trading.
Launched in 2008, Groupon only declared its IPO about a year ago, when its stock sold about $25 per share, strengthening its brand and concept of bringing the best local deals around one’s city.
With a market cap of $1.94 billion, Groupon has expanded to 48 countries, beyond its Chicago headquarters and California office, and into regional offices in locations such as Europe, Latin America and Asia.
Groupon reported a consolidated revenue of all of its segments of $568.6 million, an increase of 32 percent compared to a year ago, according to its third quarter fiscal report. Groupon also experienced strong results for its gross billings (customer purchases of goods and services), operating income and free cash flow year-over-year comparisons despite a decreased operating cash flow of 35 percent. At the end of the quarter, Groupon reported having $1.2 billion in cash and cash equivalents, and no long-term debt.
In the report, Groupon also provided an update of its new segment, Groupon Goods, which operates under the same premise, but instead targeting company goods at discounted rates.
"Our solid performance in North America was offset by continued challenges in Europe," said Groupon CEO, Andrew Mason, in the Groupon fiscal release. "Groupon Goods has evolved into a second major category that our customers clearly love. With deals on everything from designer sunglasses to big-screen televisions to most-wanted toys, we think it will be a great gifting destination this holiday season."
Besides Coleman, other Gurus who have reported to buying Groupon shares in the third quarter include George Soros, Chris Davis, Joel Greenblatt, Paul Tudor Jones and John Burbank. (View Groupon’s holding history with other Gurus at GRPN: Holding History.)
In addition to Groupon, Coleman reported 13 other new buys in his third quarter portfolio updates, along with three additions to current shares, 10 reductions to current shares and four stocks in which Coleman completely sold out – a total of 31 transactions.
Coleman’s current stock lineup totals 43 stocks, a value of $7.1 billion and a quarter-over-quarter turnover rate of 18 percent.
The technology sector makes up about 50 percent of Coleman portfolio. His top holdings are:
- Apple Inc. (NASDAQ:AAPL) representing 12% of his portfolio, which is 0.14% of shares outstanding.
- Yandex NV (NASDAQ:YNDX) representing 8% of his portfolio, which is 7.18% of shares outstanding.
- Google Inc. (NASDAQ:GOOG) representing 7.4% of his portfolio, which is 0.21% of shares outstanding.
- Priceline.com (NASDAQ:PCLN) representing 6.9% of his portfolio, which is 1.58% of shares outstanding.
- Yahoo! Inc. (NASDAQ:YHOO) representing 5.6% of his portfolio, which is 2.11% of shares outstanding.
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