Tiger Global Management, the firm founded by Chase Coleman (Trades, Portfolio), disclosed last week that its top five buys for the second quarter were CrowdStrike Holdings Inc. (CRWD, Financial), Salesforce.com Inc. (CRM, Financial), Workday Inc. (WDAY, Financial), Spotify Technology SA (SPOT, Financial) and Amazon.com Inc. (AMZN, Financial).
The New York-based firm applies investing strategies that Coleman learned from Tiger Management founder Julian Robertson (Trades, Portfolio). While the firm centers its investments primarily in small-cap and technology stocks, Tiger Global also looks at early-stage venture, late-stage venture, post-initial public offering and secondary market equities.
As of the quarter-end, Tiger Global's $25.79 billion equity portfolio contains 73 stocks, with four new positions and a turnover ratio of 6%. The technology sector has a portfolio weight of 35.88%, up from the previous-quarter weight of 34.90%.
The consumer cyclical and communication services sectors rank second and third with weights of 28.60% and 20.74%.
CrowdStrike
Tiger Global purchased 4.792 million shares of CrowdStrike, increasing the stake 1,916.80% and the equity portfolio 1.86%. Shares averaged $79.52 during the second quarter.
The Sunnyvale, California-based company provides a wide range of solutions to supplement security and network operations teams. According to GuruFocus, CrowdStrike's cash-to-debt and debt-to-equity ratios outperform over 74% of global competitors, suggesting good financial strength.
Salesforce.com
Tiger Global purchased 1,197,596 shares of Salesforce.com, increasing the position 105.78% and the equity portfolio 0.87%. Shares averaged $168.06 during the second quarter.
The San Francisco-based company operates a customer relationship management software-as-a-service product. GuruFocus ranks Salesforce.com's financial strength 7 out of 10, driven by a strong Altman Z-score of 5.94 despite interest coverage and debt ratios underperforming more than half of global competitors.
Other gurus with holdings in Salesforce.com include Ken Fisher (Trades, Portfolio) and Spiros Segalas (Trades, Portfolio).
Workday
Tiger Global purchased 692,000 shares of Workday, increasing the holding 29.85% and the equity portfolio 0.50%. Shares averaged $161.03 during the second quarter.
The Pleasanton, California-based company provides enterprise resource planning software for medium-sized and large companies. GuruFocus ranks Workday's financial strength 5 out of 10: Although the company has a high Altman Z-score of 5.43, debt ratios are underperforming over 80% of global competitors.
Spotify
Tiger Global purchased 447,109 shares of Spotify, increasing the position 16.33% and the equity portfolio 0.45%. Shares averaged $170.37 during the second quarter.
GuruFocus ranks the Stockholm-based music streaming service provider's financial strength 6 out of 10: Although the company has a strong Altman Z-score of 7.5, Spotify has a weak Piotroski F-score of 3 and a debt-to-equity ratio that underperforms 65.84% of global competitors.
Amazon.com
Tiger Global purchased 40,710 shares of Amazon.com, increasing the holding 7.37% and the equity portfolio 0.44%. Shares averaged $2,403.24 during the second quarter.
GuruFocus ranks the Seattle-based retail giant's profitability 8 out of 10 on several positive investing signs, which include expanding operating margins and a 4.5-star business predictability rank.
Disclosure: No positions.
Read more here:
- David Einhorn's Top 5 Trades in the 2nd Quarter
- Wallace Weitz's Top 5 Sells in the 2nd Quarter
- Top 5 Buys of Chuck Akre's Firm in the 2nd Quarter
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