The latest 13F season is here, when many money managers issue required reports on their holdings. It can be worthwhile to pay attention, as you might get an investment idea or two by seeing what some major investors have been buying and selling.
For example, consider Lone Pine Capital, founded by Steve Mandel in 1997. Lone Pine is one of the biggest hedge fund companies and has reportedly outperformed the S&P 500 handily since inception. Its reportable stock portfolio totaled $23 billion in value as of March 31, 2014. According to its recently released 13F statement, Lone Pine established or added to positions in Cognizant Technology Solutions Corp (CTSH +0.02%), ICICI Bank Ltd (IBN 0.46%), and Ctrip.com International, Ltd. (CTRP 0.78%).
Cognizant Technology Solutions is an IT consulting and outsourcing specialist. It's based in the U.S. but has much of its operations based in India, home to other top outsourcers. The company is likely to be affected by immigration reform, so last year it announced plans to hire 10,000 people in the U.S. Cognizant has been growing briskly, with its most recent quarter featuring double-digit revenue and earnings growth. With a forward P/E of 16 -- well below its five-year average of 25 -- the stock seems appealingly priced. Bulls like its international growth prospects.
India-based ICICI Bank got a boost recently when India elected a new, pro-business prime minister. The bank's most recently reported quarter featured earnings up 15% over year-ago levels, along with increases in net interest income and fee income. On the other hand, asset quality worsened, operating expenses increased, and loan-loss provisions were steeper than expected. ICICI stocks yields 1.5%.
Ctrip.com International, based in China, is a well-regarded online travel booking site. Revenue has been growing briskly in recent years, but earnings have not quite followed suit, and profit margins have been shrinking. Some worry that the company might spend some of its big cash pile on suboptimal acquisitions. Its first quarter featured revenue up a whopping 36% over year-ago levels, while non-GAAP operating income, excluding charges, fell 29%. Mobile transaction value grew more than fourfold during the previous year, with management noting, "Mobile has surpassed PC Internet to be the most important booking platform for our accommodation reservation business, contributing over 40% of our transactions during the quarter and over 60% on the peak day."
