Chase Coleman (Trades, Portfolio), founder of Tiger Global Management and one of the late Julian Robertson's former "tiger cubs," disclosed his first-quarter equity portfolio earlier this month.
As an early investor in Meta Platforms Inc.’s (META, Financial) Facebook and Spotify Technology SA (SPOT, Financial), the guru's New York-based hedge fund is known for focusing on small-cap stocks and technology startups. It also searches for value opportunities among early-stage venture, late-stage venture, post-initial public offering and secondary market equities.
Keeping these considerations in mind, the 13F filing for the three months ended March 31 showed Coleman entered nine new positions, sold out of eight stocks and added to or trimmed a slew of other existing investments. His largest trades for the quarter included a new stake in Taiwan Semiconductor Manufacturing Co. (TSM, Financial) and boosts to the Alphabet Inc. (GOOGL, Financial), Take-Two Interactive Software Inc. (TTWO, Financial), Intuit Inc. (INTU, Financial) and Microsoft Corp. (MSFT, Financial) holdings.
Investors should be aware 13F filings do not give a complete picture of a firm’s holdings as the reports only include its positions in U.S. stocks and American depository receipts, but they can still provide valuable information. Further, the reports only reflect trades and holdings as of the most-recent portfolio filing date, which may or may not be held by the reporting firm today or even when this article was published.
Taiwan Semiconductor Manufacturing
After selling out in fourth-quarter 2022, Coleman invested in 1.58 million shares of Taiwan Semiconductor (TSM, Financial), allocating 1.34% of the equity portfolio to the stake. The stock traded for an average price of $89.76 per share during the quarter.
The Taiwanese manufacturer of semiconductor chips has a $514.96 billion market cap; its shares were trading around $99.29 on Thursday with a price-earnings ratio of 15.41, a price-book ratio of 4.87 and a price-sales ratio of 6.56.
The GF Value Line suggests the stock is significantly undervalued currently based on its historical ratios, past financial performance and analysts’ future earnings projections.
At 99 out of 100, the GF Score indicates the company has high outperformance potential, driven by solid ratings for profitability, growth, value, momentum and financial strength.
Of the gurus invested in Taiwan Semiconductor, Ken Fisher (Trades, Portfolio) has the largest stake with 0.49% of its outstanding shares. First Eagle Investment (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Baillie Gifford (Trades, Portfolio), Philippe Laffont (Trades, Portfolio), Frank Sands (Trades, Portfolio) and a number of other gurus also have large positions in the stock.
Alphabet
The guru expanded his stake in Alphabet (GOOGL, Financial) by 124.40%, picking up 4.64 million Class A shares. The transaction had an impact of 4.37% on the equity portfolio. Shares traded for an average price of $95.94 each during the quarter.
He now holds 8.36 million shares, which occupy 7.89% of the equity portfolio and is the fifth-largest holding. GuruFocus estimates Coleman has gained 13.48% on the investment so far.
The communications services company headquartered in Mountain View, California, which owns the Google search engine, YouTube and a number of other businesses, has a market cap of $1.57 trillion; its Class A shares were trading around $123.26 on Thursday with a price-earnings ratio of 27.45, a price-book ratio of 6.01 and a price-sales ratio of 5.64.
According to the GF Value Line, the stock is modestly undervalued currently.
The GF Score of 99 implies the company has high outperformance potential on the back of solid ratings for financial strength, profitability, growth, value and momentum.
With 0.33% of its outstanding Class A shares, Fisher is Alphabet’s largest guru shareholder. Other top guru investors include PRIMECAP Management (Trades, Portfolio), Dodge & Cox, the Harbor Capital Appreciation Fund (Trades, Portfolio), Bill Nygren (Trades, Portfolio), Philippe Laffont (Trades, Portfolio), Hotchkis & Wiley and Daniel Loeb (Trades, Portfolio).
Take-Two Interactive Software
Impacting the equity portfolio by 1.83%, the investor boosted the Take-Two Interactive Software (TTWO, Financial) position by 236.16%, buying 1.68 million shares. During the quarter, the stock traded for an average per-share price of $111.53.
Coleman now holds 2.4 million shares, which account for 2.60% of the equity portfolio and is the ninth-largest holding. GuruFocus data shows he has gained an estimated 22.75% on the investment to date.
The New York-based video game holding company has a $22.75 billion market cap; its shares were trading around $134.76 on Thursday with a price-book ratio of 2.38 and a price-sales ratio of 4.09.
Based on the GF Value Line, the stock is modestly undervalued currently.
Further, the GF Score of 86 means the company has good performance potential. While it received high ratings for four of the criteria, the financial strength rank was more moderate.
Coleman is now Take-Two’s largest guru shareholder with a 1.42% stake. Steven Cohen (Trades, Portfolio), Nygren and Diamond Hill also have significant positions in the stock.
Intuit
With an impact of 1.81% on the equity portfolio, the Intuit (INTU, Financial) holding was upped by 32,677.78%, or 447,032 shares. The stock traded for an average price of $410.51 per share during the quarter.
The guru now holds 448,400 shares, which make up 1.82% of the equity portfolio. GuruFocus found Coleman has gained 15.70% on the investment over its lifetime.
The company headquartered in Mountain View, California, which provides financial software like TurboTax and QuickBooks, has a market cap of $115.76 billion; its shares were trading around $412.63 on Thursday with a price-earnings ratio of 60.50, a price-book ratio of 7.31 and a price-sales ratio of 8.58.
The GF Value Line suggests the stock is modestly undervalued currently.
Supported by robust ratings across the board, the GF Score of 99 indicates the company has high outperformance potential.
Holding a 0.90% stake, Fisher is the company’s largest guru shareholder. PRIMECAP and Andreas Halvorsen (Trades, Portfolio) also have large positions in Intuit.
Microsoft
Coleman increased the Microsoft (MSFT, Financial) stake by 12.82%, or 674,257 shares. The transaction had an impact of 1.77% on the equity portfolio. During the quarter, shares traded for an average price of $255.08 each.
He now holds 5.93 million shares, reflecting 15.55% of the equity portfolio and the largest position. GuruFocus says he has gained an estimated 129.71% on the long-held investment.
The Redmond, Washington-based software company known for its Windows operating system and Office suite of products, has a $2.41 trillion market cap; its shares were trading around $323.87 on Thursday with a price-earnings ratio of 35.09, a price-book ratio of 12.37 and a price-sales ratio of 11.69.
According to the GF Value Line, the stock is fairly valued currently.
The GF Score of 97 means the company has high outperformance potential, receiving high ratings for profitability, growth, financial strength and momentum. The value rank, however, was more moderate.
Bill Gates (Trades, Portfolio)’ foundation trust has the largest position in the stock with 0.53% of its outstanding shares. Other top guru investors include Fisher, Dodge & Cox, PRIMECAP, Baillie Gifford (Trades, Portfolio), Harbor Capital, Al Gore (Trades, Portfolio)’s Generation Investment and Jeremy Grantham (Trades, Portfolio).
Additional trades and portfolio composition
During the quarter, the guru also entered a position in Apple Inc. (AAPL, Financial), added to the holdings of Apollo Global Management Inc. (APO, Financial) and Datadog Inc. (DDOG, Financial) and cut back the investments in Kanzhun Ltd. (BZ, Financial) and Snowflake Inc. (SNOW, Financial).
A majority of Coleman’s $10.99 billion equity portfolio, which is composed of 56 stocks, is invested in the technology, communication services and consumer cyclical sectors.
