Here's What This Huge Long-Term Winner Is Buyinghttp://www.fool.com/investing/general/2012/12/03/heres-what-this-huge-long-term-winner-is-buying.aspx Selena Maranjian
December 3, 2012
Every quarter, many money managers have to disclose what they've bought and sold, via "13-F" 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.Before 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 $16.5 billion in value as of Sept. 30, 2012.
The biggest new holdings are Schlumberger (NYSE: SLB ) and VeriSign (Nasdaq: VRSN ) . VeriSign, an Internet infrastructure services company, recently got good and bad news. Per a Department of Commerce decision, it will be able to continue registering ".com" websites, but it won't get automatic (up to) 7% annual rate increases. Still, it's a leader in its field and collects a lot of recurring revenue.
Among holdings in which Lone Pine Capital increased its stake were priceline.com (Nasdaq: PCLN ) and Cognizant Technology Solutions (Nasdaq: CTSH ) . Priceline has been experiencing strong growth internationally, with growth in Asia and the U.S. making up for weakness in Europe. The stock has been a huge winner for Motley Fool Stock Advisor investors. Some think it has risen too quickly lately, while others, such as a variety of Wall Street analysts as well as our own, think it has plenty of room to run, liking its fat profit margins and rapid growth rates..
IT consulting and outsourcing specialist Cognizant Technology Solutions' (Nasdaq: CTSH ) growth has slowed a bit in recent years, but it's still growing at a solid clip, with revenue up 18% over year-ago levels in its last quarter. In addition, management was pleased with strong growth from relatively new services, such as consulting, business process outsourcing, and IT infrastructure services. Its currently weak areas, such as Europe and the health-care market, are likely to recover eventually, boosting profits.
Lone Pine Capital reduced its stake in lots of companies, including Qualcomm (Nasdaq: QCOM ) . Qualcomm is supplying many millions of iDevices and Android devices with its LTE chip technology. It ran into trouble earlier in the year, though, when supply shortages at Taiwan Semiconductor (NYSE: TSM ) slowed its production. Qualcomm has been broadening its line of S4 Snapdragon processors for smartphones, and it has surpassed chip giant Intel (Nasdaq: INTC ) in market capitalization.