(This post is part of our series on tracking hedge fund portfolios. If you're unfamiliar with tracking investments they disclose via SEC filings, check out our series preface on hedge fund filings.)
Next up is Stephen Mandel's hedge fund Lone Pine Capital. Mandel's firm is named after a historical lone pine tree at his alma mater, Dartmouth College. Before founding his own firm, Mandel worked at Julian Robertson's legendary Tiger Management and he seeks to identify companies with good management teams that are trading below intrinsic value. Recent activity out of Lone Pine includes a new stake in Longtop Financial Technologies (LFT) as well as a new position in Live Nation Entertainment (LYV).
For 2009, Lone Pine's main fund Lone Cypress was up 17.7% as noted in our hedge fund performance numbers post. Additionally, their Lone Kauri was up 12.1%, Lone Cascade up 44.4%, and Lone Dragon Pine up 72.9%. For other investment ideas from Mandel's hedge fund, we previously saw that they are bullish on education plays as well.
The positions listed below were Lone Pine's long equity, note, and options holdings as of March 31st, 2010 as filed with the SEC. All holdings are common stock unless otherwise denoted:
Brand New Positions
Cognizant Technology Solutions (CTSH)
DaVita (DVA)
United Parcel Service (UPS)
Ameriprise Financial (AMP)
Coca Cola (KO)
Activision Blizzard (ATVI)
Amazon (AMZN)
Polo Ralph Lauren (RL)
Amphenol (APH)
Walter Energy (WLT)
Salesforce.com (CRM)
Live Nation (LYV) ~ we covered this back when they bought it
Longtop Financial Technologies (LFT) ~ we also previously detailed this new stake
PNC Financial (PNC)
O'Reilly Automotive (ORLY)
Apollo Group (APOL)
Invesco (IVZ)
Wyndham Worldwide (WYN)
Umpqua Holdings (UMPQ)
Increased Positions
New Oriental Education (EDU): Increased by 238.2%
Mead Johnson Nutrition (MJN): Increased by 127.1%
Autodesk (ADSK): Increased by 119.8%
Yum Brands (YUM): Increased by 87.8%
Pactiv (PTV): Increased by 74.42%
Wells Fargo (WFC): Increased by 33.9%
Accenture (ACN): Increased by 31.8%
CVS Caremark (CVS): Increased by 16.7%
Qualcomm (QCOM): Increased by 14.7%
Estee Lauder (EL): Increased by 14.6%
Dr Pepper Snapple (DPS): Increased by 7%
Bank of America (BAC): Increased by 5.22%
JPMorgan Chase (JPM): Increased by 1.88%
Reduced Positions
Monsanto (MON): Reduced position by 63.6%
Green Mountain Coffee Roasters (GMCR): Reduced by 59%
Popular (BPOP): Reduced by 47.5%
Hewlett Packard (HPQ): Reduced by 42.5%
Baxter International (BAX): Reduced by 39.4%
Staples (SPLS): Reduced by 38.2%
Visa (V): Reduced by 33.5%
Goodrich (GR): Reduced by 21.6%
Mindray Medical (MR): Reduced by 18%
Citrix Systems (CTXS): Reduced by 11.8%
McDonald's (MCD): Reduced by 8.76%
Apple (AAPL): Reduced by 7%
Strayer Education (STRA): Reduced by 5.05%
Positions They Sold Out of Completely
HSBC Holdings (HBC)
Walgreen (WAG)
Walt Disney (DIS)
FLIR Systems (FLIR)
eBay (EBAY)
Discovery Communications (DISCA)
Precision Castparts (PCP)
MSCI (MXB)
Schein (HSIC)
Southwestern Energy (SWN)
Smithfield Foods (SFD)
VistaPrint (VPRT)
Melco Crown (MPEL)
E*Trade Financial (ETFC)
Marvel (MVL)
Grupo Aeroportuario Pacifico (PAC)
Grupo Aeroportuario Sure (ASR)
Deltek (PROJ)
Top 15 Holdings (by percentage of assets reported on 13F filing)
- JPMorgan Chase (JPM): 7.73%
- Qualcomm (QCOM): 5.72%
- Cognizant Technology Solutions (CTSH): 5.39%
- Apple (AAPL): 5.36%
- Accenture (ACN): 4.67%
- Yum Brands (YUM): 4.56%
- McDonald's (MCD): 4.50%
- Wells Fargo (WFC): 4.43%
- Baxter International (BAX): 3.57%
- Visa (V): 3.21%
- Strayer Education (STRA): 3.04%
- DaVita (DVA): 2.86%
- Bank of America (BAC): 2.65%
- Hewlett Packard (HPQ): 2.53%
- New Oriental Education (EDU): 2.27%
Lone Pine's largest exposure by far is in the information technology sector, followed by consumer discretionary and financials. For us, the most notable change to Mandel's portfolio was the addition of a brand new position in Cognizant Technology Solutions (CTSH) that they made their third largest holding. Their new stake in DaVita (DVA) was also sizable.
Of positions they already owned, they added heavily to their holdings in New Oriental Education (EDU), Mead Johnson Nutrition (MJN), Autodesk (ADSK), Yum Brands (YUM), and Pactiv (PTV). We make special note of their increase in MJN as we had previously examined why hedge funds like Mead Johnson Nutrition. Many hedge funds owned it in the fourth quarter of 2009 and as you'll see from our continuing coverage of first quarter 2010 portfolios, tons of hedgies have shares of MJN in their portfolio this time around as well.
Of the positions Lone Pine sold out of completely, only HSBC (HBC), Walgreen (WAG), and Walt Disney (DIS) were previously sizable stakes. They also significantly reduced position sizes in some of the hedge fund favorite names such as Monsanto (MON), Green Mountain Coffee Roasters (GMCR), and Popular (BPOP).
Assets reported on the 13F filing were $10.3 billion this quarter. Data from the SEC is aggregated and sorted automatically by Alphaclone, our source for sorting through all the hedge fund portfolio maneuvers and backtesting the performance (Market Folly readers can receive a special free 30 day trial). Remember that these filings are not representative of the hedge fund's entire base of AUM.
This post is part of our daily hedge fund portfolio tracking series. We've already detailed activity from numerous managers so click the links below to be taken to the respective portfolio updates: Seth Klarman's Baupost Group as well as Warren Buffett's Berkshire Hathaway. Be sure to check back daily for new hedge fund updates.
