>
  1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
James Li
James Li
Articles (1449)  | Author's Website |

Julian Robertson's Top 4 Buys of the 3rd Quarter

Tiger Management starts Workday position, boosts 3 other holdings

November 23, 2020 | About:

Julian Robertson (Trades, Portfolio)'s Tiger Management disclosed this month that its top four buys in the third quarter included a new position in Workday Inc. (NASDAQ:WDAY) and position boosts to AerCap Holdings NV (NYSE:AER), Microsoft Corp. (NASDAQ:MSFT) and Facebook Inc. (NASDAQ:FB).

Considered the "father of hedge funds," Robertson launched Tiger Management in 1980 with approximately $8 million and expanded the firm's assets to over $22 billion during the 1980s and 1990s. The firm reported a 32% compounded rate of return to investors during Robertson's active years.

784766757b770eadb3b68015052a17a3.png

Tiger Management invests using long and short strategies, with the goal of buying shares in the top 200 companies and shorting shares in the bottom 200 companies. The firm is known for going all-in when Robertson is convinced he is correct.

Robertson closed his hedge fund to outside investors in 2000 following losses in the late 1990s as rival investors rode the dot-com bubble to high returns. Tiger Management currently just manages money funded by Robertson's internal investments.

As of third quarter-end, Tiger Management's $351 million equity portfolio contains 40 stocks, with 11 new positions and a turnover ratio of 9%. The top four sectors in terms of weight are technology, communication services, financial services and health care, representing 30.72%, 20.44%, 17.41% and 15.78% of the equity portfolio.

1ef5a0d3f16c55288fc153e387bb1045.png

Workday

Tiger Management purchased 11,800 shares of Workday, giving the position 0.72% weight in the equity portfolio. Shares averaged $197.97 during the third quarter.

c2648eb2eee731cfe70dc202191cfb93.png

The Pleasanton, California-based company offers human capital management, financial management and business planning solutions through its cloud-only platform. GuruFocus ranks the company's financial strength 5 out of 10: Although Workday has a strong Altman Z-score of 6.42, its cash-to-debt and debt-to-equity ratios are underperforming over 62% of global competitors.

6e2de4cfb984d49ad1d748eda674886f.png

Other gurus with holdings in Workday include Chase Coleman (Trades, Portfolio)'s Tiger Global Management and Andreas Halvorsen (Trades, Portfolio)'s Viking Global Investors, firms whose leader is a former "tiger cub" of Robertson.

54116eef60136954bdb24a7e2130c6b7.png

AerCap

Tiger Management purchased 269,000 shares of AerCap, increasing the position 23.62% and the equity portfolio 1.93%. Shares averaged $29 during the third quarter.

874aae3ef2d025f1f7bb36cf7f990555.png

GuruFocus ranks the Irish aircraft leasing company's profitability 8 out of 10 on the back of a 4.5-star business predictability rank and an operating margin that is outperforming over 96% of global competitors. Despite this, net margins and returns are underperforming over 60% of global transportation companies.

cc3c4f0e0c78b7e2b9cd6fb961c433e3.png

Microsoft

The firm purchased 23,000 shares of Microsoft, increasing the position 16.72% and the equity portfolio 1.38%. Shares averaged $210.04 during the third quarter.

4573f62d689c3b6e62a14d3e89c14b0f.png

GuruFocus ranks the Redmond, Washington-based software giant's profitability 9 out of 10 on several positive investing signs, which include a high Piotroski F-score of 8, expanding profit margins and a three-year revenue growth rate that outperforms over 70% of global competitors.

2625cf896c1cb135297da57aa413d2a6.png

Facebook

The firm purchased 14,000 shares of Facebook, increasing the holding 10.71% and the equity portfolio 1.04%. Shares averaged $257.89 during the third quarter.

9541be670cfad157d92edd32aeee480f.png

GuruFocus ranks the Menlo Park, California-based company's financial strength and profitability 9 out of 10 on several positive investing signs, which include a double-digit Altman Z-score, robust interest coverage and an operating margin that outperforms over 89% of global competitors.

3e7ad93c72af5b4e30e4a286e89f120d.png

Disclosure: No positions.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

James Li
I am an editorial researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


Rating: 0.0/5 (0 votes)

Comments

Please leave your comment:



Performances of the stocks mentioned by James Li


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)