New York, US – One of the most successful tech hedge fund managers Chase Coleman, 45, has one of the most successful investing track records since he received $25 million in seed capital from Tiger Management founder Julian Robertson. His firm Tiger Global Management posted a whopping 21% average return in the last 20 years and earned more than $10 billion in fiscal 2020 alone.
After generating substantial gains in 2020, the tiger cub doubled down his investment in tech stocks. Chase Coleman saw the tech market selloff as a buying opportunity. He claimed a multi billion dollar stake in kids gaming app Roblox, which went public in March.
Chase Coleman initiated 25 new positions in the first quarter this year and added to his 17 existing positions. Along with Roblox, DocuSign, DoorDash and Shopify were among the top buys in the latest quarter.
Despite tech stocks underperformance compared to value stocks since November last year, the elite investment manager strongly believes in the future prospects of the tech sector. He sold out only 2 stocks and reduced 8 positions during the first quarter.
Tech stocks have been under pressure since the beginning of this year amid investors shift towards value stocks, blamed mainly on vaccine rollout and improving economic trends.
Nevertheless, Tiger cub isn’t worried about the tech stocks pull-back in the past couple of months. He held almost 85% of the $45 billion worth of portfolio concentration in three high growth sectors, with information technology holding 41% of the overall weighting. The consumer discretionary and communications sectors represented 30% and 14% of the overall 13F portfolio, according to the latest 13F filing with Securities Exchange and Commision.
What’s more, the top five positions accounted for 35% of the total equity assets at the end of the first quarter, while the top ten holdings had a concentration of 51%. Let’s start digging into Chase Coleman’s top 3 positions to see where the elite fund manager’s money is moving:
The Chinese e-commerce platform JD.com is the largest stock holding of billionaire Chase Coleman’s hedge fund, accounting for 11.63% of the overall portfolio.
Following a stunning rally in 2020, shares of JD.com are struggling to extend that momentum into 2021. Its stock price is down 22% so far this year. Despite a selloff, Tiger Global left its position unchanged in the first quarter. Increasing regulatory concerns in China along with easing social distancing policies are blamed for the latest selloff.
It’s true that a post-pandemic environment is likely to create a negative impact on sales growth compared to 2020. The company still appears in a position to generate double digit revenue growth momentum in the years ahead considering its massive market share and consumers shift towards online platforms.
2. Microsoft Corporation
The tech giant Microsoft Corporation has been a member of tiger cub’s portfolio since 2016. His firm raised its existing position by 16% in the first quarter to 13.72 million shares, weighted around 7.35% of the overall portfolio and valued at $3.23 billion.
Shares of Microsoft are up 10% since the beginning of this year, enlarging twelve-month gains to 33%. In addition to share price gains, the company offers hefty dividend increases to shareholders, making it a good stock to buy and hold for the long-term.
The company appears in a strong position to back shareholders returns, thanks to a sustainable growth in financial numbers. Its revenue in the latest quarter came in at $41 billion, up 19% year over year. Microsoft expects to continue the double digit growth momentum in the coming quarter amid robust demand for its software and cloud products.
3. Roblox Corporation
Chase Coleman’s Tiger Global Management is counting big on the video gaming app company. His firm bought $2.62 billion worth of Roblox shares at its debut. While shares of Robolox are struggling to make noticeable gains yet, Colman looks optimistic over the future fundamentals of the entertainment company.
The company has been witnessing robust user growth both in the US and in the international markets. In the March quarter, Robolox users grew 87% outside of the U.S./Canada, and daily active users over the age of 13 more than doubled (111% growth year over year).
Morgan Stanley set a $87 price target for Roblox shares, representing more than 15% upside from the current level.
“This continued user engagement and bookings growth should give investors more confidence in the durability of RBLX’s forward growth and free cash flow potential,” Morgan Stanly analyst Brian Nowak said.
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