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Groupon, Twitter Investor Chase Coleman Buys Stake in Internet-Based Zillow Inc.

Holly LaFon

Holly LaFon

255 followers
Chase Coleman (Trades, Portfolio), founder of the hedge fund seeded by investing legend Julian Robertson (Trades, Portfolio), Tiger Global Management, has added another Internet stock to his portfolio, Zillow Inc. (Z). Coleman’s top holdings contain several Internet-based companies, including Priceline.com Inc. (PCLN), Amazon.com Inc. (AMZN), and Yahoo Inc. (YHOO). He also has smaller interests in a number of other well-known dot-coms, such as Groupon Inc. (GRPN), TripAdvisor Inc. (TRIP), Zynga Inc. (ZNGA), Twitter Inc. (TWTR).

Coleman acquired 3,136,081 shares of Zillow Inc., a 9.5% stake in the company, on April 21, 2014, according to GuruFocus Real Time Picks. Zillow’s share price closed at $103 that day, jumping 8.3% from its morning open and hitting a 52-week high. Year to date, Zillow’s shares have gained 25% and trade around $101.68 on Tuesday.

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Zillow operates a portfolio of home and real estate websites and businesses that give information about available homes. The company also has the largest real estate and rental advertising network in the U.S., through a partnership with Yahoo Homes. It began trading in 2011, and has a market cap of $4.04 billion after the price advanced almost 200% since.

In its most recent earnings report, released Feb. 12, the company announced several record year-over-year operating measures. Fourth-quarter revenue rose 70% to $58.3 million, net income increased to $2.7 million from $549,000, and EBITDA reached $15.2 million from $6.8 million. Traffic and mobile usage also grew to record numbers.

The company is aiming to grow through throughout 2014 by investing in expanding its audience, its Premier Agent business, and its mortgages and emerging marketplaces. In 2013, Zillow grew to roughly double the size of its two closets competitors based on web and mobile traffic.

Zillow’s revenue and earnings history:

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Cash and cash equivalents on the company’s balance sheet totaled $201.8 million at Dec. 31, 2013, up from $150.04 million at the same time last year.

Zillow currently has a P/B of 6.3 and P/S of 16.61.

For more Chase Coleman (Trades, Portfolio) stocks, visit his portfolio here. Real Time Picks is a Premium feature. Not a Premium Member of GuruFocus? Try it free for 7 days here!


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