Chase Coleman (Trades, Portfolio) has reported owning a large stake in a new stock, On Deck Capital (ONDK, Financial), according to GuruFocus Real Time Picks. Coleman is a former protégée of Julian Robertson (Trades, Portfolio) whose hedge fund, Tiger Global, has topped the S&P 500 this year through October with returns of 16.2%.
Coleman reported owning 6,333,004 shares of On Deck Capital Inc., the equivalent of 9.2% of the company, on Dec. 17, the day of its initial public offering. On Deck in the IPO offered 11.5 million shares to raise $230 million, valuing the company at $1.32 billion.
On Deck offers small loans under $250,000 online to small businesses such as doctor’s offices and hair salons, primarily those operating in California, Florida and New Jersey. Coleman frequently invests in companies in the online space, with holdings in Autohome Inc. (ATHM, Financial), 58.com Inc. (WUBA, Financial), Trulia Inc. (TRLA, Financial) and Twitter Inc. (TWTR, Financial), among others.
The company reported making $48 million in net revenue in the first nine months of 2014, compared to $16.4 million in the same period last year, according to its IPO prospectus. Its net loss totaled $14.4 million, compared to $18.8 million, for the same periods.
On Deck’s primary source of revenue is interest income, of which it reported $99.9 million, compared to $41.1 million, for the first nine months of 2014 and 2013.
Since the IPO, On Deck shares have tumbled 19.5% to close at $22.47 per share on Tuesday.
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