Here's What This Huge Long-Term Winner Has Been Buying

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 Lone Pine Capital, founded by Steve Mandel in 1997. Prior to that, Mandel was a managing director at Tiger Management. Lone Pine is one of the biggest hedge fund companies, and reportedly beat the S&P 500 for 11 years in a row. Like many value investors, Mandel is known to dig deep into companies, aiming to buy undervalued ones.

The company's reportable stock portfolio totaled $17.0 billion in value as of June 30, 2012.

Interesting developments
So what does Lone Pine Capital's latest quarterly 13F filing tell us? Here are a few interesting details:

New holdings include Netflix (Nasdaq: NFLX  ) , which has seen its stock chopped by about 75% over the past year, leading some to now see it as a bargain. Its future isn't crystal clear, though, as it has formidable competition from Amazon.com and other fronts, and the content that it needs to acquire isn't cheap. Still, it's growing, and expanding abroad, and some even speculate that it might get bought out.

Among holdings in which Lone Pine increased its stake was IT consulting and outsourcing specialist Cognizant Technology Solutions (Nasdaq: CTSH  ) . The company's growth has slowed a bit in recent years, but it recently reported solid revenue and earnings increases. Cognizant (and its peers) are expecting slowing demand due to global economic malaise. Still, it's been retaining plenty of business, recently inking a $330 million deal (over seven years) with ING, for example. One advantage it has is its focus on North America, doing less business in troubled Europe than many rivals.

Lone Pine reduced its stake in a handful of companies, including "big data" specialist Teradata (NYSE: TDC  ) . The stock has zoomed some 46% over the past year, which probably has some looking for more undervalued stocks. But Teradata still seems to have plenty of room to grow, offering data warehousing solutions, among other things, to companies that desperately need it. Its revenue and earnings have been growing at double-digit rates over the past few years, and growth rates have been accelerating, too.

Finally, Lone Pine unloaded several companies, such as Green Mountain Coffee Roasters (Nasdaq: GMCR  ) and Las Vegas Sands (NYSE: LVS  ) . Coffee purveyor Green Mountain has seen its stock grow by an average of 36% annually over the past decade, but also plunge some 77% over the past year. Bears worry about device saturation, management missteps, and patents that will expire soon, ushering in more competition. (Some doubt its move into lemonade, as well.) It, too, is thought of as a possible acquisition target, now that its stock has sunk.

Meanwhile, shares of Las Vegas Sands have sunk about 9%, due in part to sluggishness in Las Vegas itself. It's a major player in Asia, though, and many investors are bullish on its prospects in places such as Macau and Singapore, though in Macau some worry that its properties there will be taking business from each other. Growth there has been slowing, too, and the company has further expansion plans for Spain, Vietnam, and elsewhere.

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. 13F forms can be great places to find intriguing candidates for our portfolios.

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Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Amazon.com, Teradata, and Netflix, but she holds no other position in any company mentioned. Click here to see her holdings and a short bio. The Motley Fool owns shares of Green Mountain Coffee Roasters, Netflix, and Amazon.com. Motley Fool newsletter services have recommended buying shares of Green Mountain Coffee Roasters, Teradata, Amazon.com, and Netflix, as well as creating a lurking gator position in Green Mountain Coffee Roasters. The Motley Fool has a disclosure policy.

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  • Report this Comment On September 04, 2012, at 2:36 PM, cp757 wrote:

    Most investors in the gaming industry know the big names in the business, with Las Vegas Sands being the one with the biggest growth story. They will add 50 thousand rooms in the next 6 or 7 years.

    In Macau

    Las Vegas Sands is at the right place at the right time and Macau is on pace for 37.445 billion dollars. In 2011 revenue for Macau was $33.5 billion dollars. Macau did 3.3 billion dollars in August and this increase in revenue is due to mass market gambling.

    Las Vegas Sands has the highest percentage in mass market. The most rooms, gaming tables, and slots. The revenue in Macau will be 4 billion dollars higher in 2012 than it was in 2011 and will go even higher in 2013.

    The Hotel Rooms in Macau that Las Vegas Sands will open over the next few months is 9,324 4/5‐star hotel rooms. That's 39% of all the 4/5‐star hotel inventory and the other operators average just 12.2% each.

    In Macau the reason Las Vegas Sands is going to dominate the market is because they have a total Table Capacity of 1,535 mass tables and that's 27% of all the mass tables

    The 5 other operators in Macau do not have the 135-player Imperial Stadium Baccarat Multi-Tabling games like The Venetian Macau and it's 100-player younger cousin at the Sands Macau

    In Macau Las Vegas Sands owns, The Venetian Macao, The Plaza Macao, Four Seasons Hotel Macao and the Four Seasons-branded apartments at the Sands Cotai Central development, as well as the Sands Macao on the Macau peninsula. The company is currently finishing construction on a 6,400-room complex at Sands Cotai Central, which will feature the Sheraton, St. Regis, Holiday Inn, and Intercontinental hotel brands.

    Las Vegas Sands will build The Venetian Hengqin International Convention and Resort Project, a 10,000 room multi-billion dollar project to develop parts of Hengqin Island into a convention and resort destination.

    The project will include four million sq ft of convention space, hotels, retail, vacation homes, and golf, tennis and yachting amenities. Hengqin Island is next to Cotai Central giving Las Vegas Sands added room capacity with a total of almost 24,000 rooms just in the Macau area.

    In Barcelona

    Las Vegas Sands president and chief operating officer Mike Leven told a news conference here that its verdict would now come early in September 2012.

    "Construction would begin in mid-2013 and take five to 10 years", Leven said. Construction and tourism have been the main engines of Spanish growth for 20 years. Sheldon Adelson is looking at Barcelona as a spot for the new casino which could come together soon . Barcelona would add the attraction of a tour ship dock which could drive more traffic than the proposed Madrid location.

    Adelson has not made the final decision and is waiting for final terms from the local governments. The European Las Vegas, is a complex that would have 12 great hotels with 36,000 rooms, 6 casinos, 50,000-seat sports center, 3 golf courses and a Convention Center plus 27 restaurants that would start construction in 2013.

    In Singapore

    The Marina Bay Sands has 2,561 rooms with 99% occupancy and will add 1500 to 2500 rooms to the location.

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