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Julian Robertson’s Hedge Fund Portfolio in 2022: 7 Latest Stock Picks

In this article, we will look at the 7 latest stock picks of Julian Robertson’s Tiger Management. You can skip reading about Julian Robertson’s investment career which details his investment strategies and his hedge fund’s performance and go directly to Julian Robertson’s Hedge Fund Portfolio in 2022: 2 Latest Stock Picks.

Julian Robertson is an American billionaire investor and philanthropist. Mr. Robertson was born in 1932 in North Carolina, United States. He attended the University of North Carolina at Chapel Hill and graduated from there in 1955. The billionaire also served in the U.S. Navy for a brief period of 2 years until 1957. After his service, he started his financial career as a stockbroker at Kidder, Peabody & Co. and worked his way up to leading the firm’s asset management division, Webster Securities.

Tiger Management

After retiring from his roles at Kidder, Peabody & Co., Julian Robertson founded his hedge fund Tiger Management in 1980. Mr. Robertson’s trading strategies proved profitable for Tiger Management and grew it from an $8 million hedge fund in 1980 to a $7.2 billion hedge fund in 1996. As of this May, Forbes estimates Mr. Robertson to be worth $4.8 billion. In addition to investing in hedge funds, the billionaire owns several golf properties and resorts and is also a generous philanthropist. Mr. Robertson has reportedly donated $1.3 billion of his wealth to charitable causes. As of March 31, 2022, Tiger Management’s 13F portfolio is valued at over $606.45 million.

Julian Robertson’s Investment Strategy and Performance

Mr. Robertson adopted a long-short investment strategy for stock investing. His flagship strategies outperformed the S&P 500 for about two decades. The billionaire generated an average annual return of 31.7% between 1980 and 1998. The S&P 500’s average annual return over the same period was valued at 12.7%. The billionaire’s long-short strategies beat the S&P 500 by roughly 19% over 18 years. Mr. Robertson earned the titles “The Father of Hedge Funds” and “The Wizard of Wall Street”, due to his unique investment approach. One of the most notable quotes from the billionaire is:

We’ve had a movement away from value investing to momentum investing, where price is not a factor. I can’t tell you how many good investors really believe that price no longer matters, and that’s not my style…

Tiger Management has a top 10 holdings concentration of 51.09%, with the majority chunk of its investments in the Technology and Financials sectors. Some of the most notable holdings of Julian Robertson’s Tiger Management include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and QUALCOMM, Incorporated (NASDAQ:QCOM).

Our Methodology

To determine the 7 latest stock picks of Julian Robertson’s Tiger Management, we reviewed Mr. Robertson’s hedge fund’s Q1 2022 investment portfolio. We narrowed down our selection to stocks that the billionaire’s fund initiated positions in. Along with each stock, we have mentioned the analyst and investor sentiment around it. We derived the hedge fund sentiment from Insider Monkey’s database, which as of Q1 2022 tracks over 900 elite hedge funds.

Now that we have learned about Tiger Management’s performance and history, let’s dive into the 7 latest stock picks of Julian Robertson’s Tiger Management.

Julian Robertson’s Hedge Fund Portfolio in 2022: 7 Latest Stock Picks

7. Applovin Corporation (NASDAQ:APP)

Tiger Management’s Stake Value: $1,195,000

Percentage of Tiger Management’s 13F Portfolio: 0.19%

Number of Hedge Fund Holders: 28

AppLovin Corporation (NASDAQ:APP) operates a software-based platform that allows mobile app developers to enhance the marketing and monetization of their apps in the United States and internationally. It is one of the newest additions to Tiger Management’s investment portfolio, and the fund has stakes worth $1.19 million in the company which accounts for 0.19% of its 13F portfolio.

This May, AppLovin Corporation (NASDAQ:APP) released earnings for the fiscal first quarter of 2022. The company reported earnings per share of $0.06 and missed EPS estimates by $0.38. The company’s revenues came in at $625.42 million, up 3.57% year over year from $603.88 million. Shortly after, on May 12, BofA analyst Omar Dessouky upgraded AppLovin Corporation (NASDAQ:APP) to Buy from Neutral with a $43 price target.

By the end of Q1 2022, 28 hedge funds were long AppLovin Corporation (NASDAQ:APP) with stakes of $913.93 million. This is compared to 31 positions in the preceding quarter with stakes worth $1.33 billion.

AppLovin Corporation (NASDAQ:APP) is one of the newest additions to Tiger Management’s portfolio. Other notable stocks held by Tiger Management for a long time include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and QUALCOMM, Incorporated (NASDAQ:QCOM).

Here is what Vulcan Value Partners had to say about AppLovin Corporation (NASDAQ:APP) in its “Vulcan Value Partners Large Cap Fund” fourth-quarter 2021 investor letter:

AppLovin Corp. provides software solutions for mobile app developers. The company owns a portfolio of over 200 mobile games and operates an advertising platform for third-party gaming apps. The two segments create a mutually beneficial relationship. AppLovin collects and uses data gathered from its own portfolio of gaming apps to enhance its ad placement capabilities on its software platform. Recent privacy changes made by various governments and by Apple that restrict the collection of consumer data have made AppLovin’s first-party data more valuable and have strengthened its competitive position. In addition, AppLovin acquired Twitter’s MoPub advertising platform at a very attractive price. This acquisition provides the opportunity to add significant scale to AppLovin’s existing business. In the short time since we have purchased the stock, our high opinion of management has been cemented by AppLovin’s outstanding operating results and capital allocation.”

6. Nemaura Medical Inc. (NASDAQ:NMRD)

Tiger Management’s Stake Value: $1,639,000

Percentage of Tiger Management’s 13F Portfolio: 0.27%

Number of Hedge Fund Holders: 1

Nemaura Medical Inc. (NASDAQ:NMRD) operates as a medical technology company that discovers, develops, and commercializes diagnostic medical devices. On February 11, the company announced earnings for the fiscal third quarter of 2022. Nemaura Medical Inc. (NASDAQ:NMRD) reported a loss per share of $0.15 and missed EPS estimates by $0.01. Nemaura Medical Inc. (NASDAQ:NMRD) reported revenues of $0.18 million and outperformed consensus by $0.03 million.

This March, H.C. Wainwright analyst Yi Chen initiated coverage of Nemaura Medical Inc. (NASDAQ:NMRD) with a Buy rating and a $12 price target. Chen noted that the company is pioneering non-invasive, needle-free, and flexible continuous glucose monitoring systems and cited the company’s flagship product, sugarBEAT, to be a unique glucose monitoring system in the market.

Tiger Management is the only stakeholder in Nemaura Medical Inc. (NASDAQ:NMRD) as of the first quarter of 2022. The fund initiated a position in the med-tech company and purchased over 0.37 million shares, which brought the fund’s stakes to $1.63 million. The investment covers 0.27% of Tiger Management’s 13F portfolio.

5. ServiceNow, Inc. (NYSE:NOW)

Tiger Management’s Stake Value: $2,339,000

Percentage of Tiger Management’s 13F Portfolio: 0.38%

Number of Hedge Fund Holders: 90

ServiceNow, Inc. (NYSE:NOW) is a leading provider of enterprise cloud computing solutions that define, structure, manage, and automate services for enterprises worldwide. It is one of the newest buys of Tiger Management. Julian Robertson’s hedge fund initiated a position in ServiceNow, Inc. (NYSE:NOW) in Q1 2022. His fund’s stakes in the company were valued at $2.33 million, which accounts for 0.38% of Tiger Management’s 13F portfolio.

On April 27, ServiceNow, Inc. (NYSE:NOW) announced earnings for the fiscal first quarter of 2022. The company registered an EPS of $1.73 and exceeded expectations by $0.03. Moreover, the company’s revenues grew 26.62% year over year and came in at $1.72 billion, outperforming market consensus by $22.78 million.

This May, Stifel analyst Brad Reback lowered his price target on ServiceNow, Inc. (NYSE:NOW) to $550 from $650 while maintaining a Buy rating on the shares. The analyst contended that the company presented its long-term model in which it increased its fiscal year 2024 and 2026 subscription revenue targets to $11 billion and $16 billion, respectively, and noted that it aims to achieve these targets organically. The analyst sees ServiceNow, Inc. (NYSE:NOW) maintaining a revenue growth of over 20% and also driving significant margin expansion. 

By the end of the first quarter of 2022, 90 hedge funds were long ServiceNow, Inc. (NYSE:NOW). The total stakes of these hedge funds were valued at $7.48 billion, down from $8.49 billion in the preceding quarter with 90 positions.

ClearBridge Investments mentioned ServiceNow, Inc. (NYSE:NOW) in its “Select Strategy” third-quarter 2021 investor letter. Here is what the firm said:

“Offsetting the consumer slowdown, the Strategy benefited from resilience among its disruptive IT and communications holdings serving the enterprise market. ServiceNow is also a strong performer in helping businesses streamline their workflows and enhance customer relationships and marketing.”

4. SentinelOne, Inc. (NYSE:S)

Tiger Management’s Stake Value: $4,293,000

Percentage of Tiger Management’s 13F Portfolio: 0.7%

Number of Hedge Fund Holders: 38

SentinelOne, Inc. (NYSE:S) provides cybersecurity solutions in the United States and internationally. In the first quarter of 2022, Tiger Management initiated a position in SentinelOne, Inc. (NYSE:S) and purchased over 0.11 million shares of the company, which amount to a stake value of $4.29 million. The investment covers 0.7% of Tiger Management’s 13F portfolio.

On March 15, SentinelOne, Inc. (NYSE:S) released earnings for the fiscal fourth quarter of 2022. The company reported a loss per share of $0.17 but beat expectations by $0.01. Moreover, the company reported revenues of $65.64 million, beating revenue consensus by $4.95 million.

On May 23, Jefferies analyst Joseph Gallo slashed his price target on SentinelOne, Inc. (NYSE:S) to $25 from $40 and reiterated a Hold rating on the shares. Gallo has cut his price targets across 28 software companies due to tightening economic headwinds and a risk of recession.

At the close of the first quarter of 2022, Insider Monkey found 38 hedge funds that held stakes in SentinelOne, Inc. (NYSE:S) that were worth $2.23 billion. This is compared to 39 positions in the previous quarter with stakes worth $3.01 billion.

Here is what ClearBridge Investments had to say about SentinelOne, Inc. (NYSE:S) in its “SMID Cap Growth Strategy” fourth-quarter 2021 investor letter:

“We added six new positions in the fourth quarter. We see next-generation cybersecurity provider SentinelOne, although early in its growth lifecycle, as capable of taking share from legacy players in the antivirus and broader cybersecurity industry.”

3. Alphabet Inc. (NASDAQ:GOOG)

Tiger Management’s Stake Value: $4,888,000

Percentage of Tiger Management’s 13F Portfolio: 0.8%

Number of Hedge Fund Holders: 160

On April 26, Alphabet Inc. (NASDAQ:GOOG) announced earnings for the fiscal first quarter of 2022 in which it beat revenue consensus by $124.63 million. The company reported earnings per share of $24.62, missing Wall Street estimates by $0.93. Alphabet Inc. (NASDAQ:GOOG) generated revenues of $68.01 billion, up 22.95% year over year from $55.31 billion.

In the first quarter of 2022, Tiger Management initiated a position in Alphabet Inc. (NASDAQ:GOOG) with stakes of $4.88 million. Alphabet Inc. (NASDAQ:GOOG) covers 0.8% of the hedge fund’s investment portfolio.

On May 24, Jefferies analyst Brent Thill cut his price target on Alphabet Inc. (NASDAQ:GOOG) to $3,100 from $3,400 but reiterated a Buy rating on the stock.

At the end of the first quarter of 2022, 160 hedge funds were long Alphabet Inc. (NASDAQ:GOOG) with stakes worth $29.68 billion. This is compared to 158 positions in the previous quarter with stakes of $36.62 billion.

Tiger Management holds significant stakes in Alphabet Inc. (NASDAQ:GOOG). Other companies that Tiger Management is heavily invested in include Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:FB), and QUALCOMM, Incorporated (NASDAQ:QCOM).

Baron Funds mentioned several companies in its “Baron Global Advantage Fund” first quarter 2022 investor letter, one of which was Alphabet Inc. (NASDAQ:GOOG). Here is what the firm had to say:

“We have modestly reduced the size of our position in Alphabet Inc. (NASDAQ:GOOG) (from 6.5% at the end of the fourth quarter of 2021 to 5.3% as of the end of the first quarter of 2022), after the stock rallied 64% in 2021 and continued outperforming during the first quarter, declining just 3%.”

 

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Disclose. None. Julian Robertson’s Hedge Fund Portfolio in 2022: 7 Latest Stock Picks is originally published on Insider Monkey.



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