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Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.
Today, let's look at Tiger Global Management. The company's reportable stock portfolio totaled $6.4 billion in value as of March 31, 2013 and contained just a few dozen stocks. Indeed, the top 10 holdings make up about 50%of the overall portfolio's value.
So what does Tiger Global's latest quarterly 13F filing tell us? Here are a few interesting details:
The biggest new holdings are Liberty Media and Dollar General. Other new holdings of interest include Stratasys (NASDAQ: SSYS ) . 3-D printing specialist Stratasys has been surging in recent years, posting double-digit (and accelerating) revenue growth and topping analyst estimates. Bulls like strong sales growth for the composite material used in its printers, but bears worry that the stock has gotten ahead of itself and don't like a drop in free cash flow.
Among holdings in which Tiger Global Management increased its stake were 3D Systems (NYSE: DDD ) and Baidu (NASDAQ: BIDU ) . Clearly, Tiger Global is bullish on 3-D printing, as that's also the focus of 3D Systems. The company's last earnings report was a bit mixed, with revenue up 31% and net income dropping. But 3-D printing is still in its infancy, with much promise. Some see the shares as a bit rich now, though, and there has been insider selling.
Chinese search engine giant Baidu has been hurt by China's slowing economic growth. Its last earnings report was disappointing (despite many impressive numbers), but its long-term prospects remain solid, as much of China and Asia has yet to get online. Some see the stock as cheap now, but the company does have serious competition. Meanwhile, Baidu is broadening its operations by expanding into video.
Tiger Global Management reduced its stake in lots of companies, including specialty chemical company W. R. Grace (NYSE: GRA ) , which is getting close to emerging from Chapter 11 bankruptcy protection. Its last earnings report featured revenue and earnings below the company's own expectations, but that didn't faze Goldman Sachs, which recently upgraded Grace stock to its Conviction Buy list, citing its cash flow and a strengthening construction market.
Finally, Tiger Global's biggest closed positions included Starz and Yandex N.V. Other closed positions of interest include Mellanox (NASDAQ: MLNX ) . Mellanox, based in Israel, is a semiconductor company. Its last few years were quite strong, as it invested heavily in cloud computing and beat Wall Street estimates, though its latest earnings report was mixed. Mellanox is buying Kotura, a high-speed networking technology company. Some wonder whether Mellanox's best years are behind it, as it faces significant competition.
We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing. 13-F forms can be great places to find intriguing candidates for our portfolios.
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