Tiger Global Management, the firm led by Chase Coleman (Trades, Portfolio), disclosed in a portfolio update filing that its top-five trades during the fourth quarter of 2022 included boosts to its holdings in Amazon.com Inc. (AMZN, Financial) and Meta Platforms Inc. (META, Financial), reductions to its holdings in Datadog Inc. (DDOG, Financial) and JD.com Inc. (JD, Financial) and the closure of its position in Li Auto Inc. (LI, Financial).
A former protégé of Tiger Management (Trades, Portfolio), Coleman is known for his interest in small caps and technology stocks. His New York-based firm seeks high-quality stocks that benefit from secular growth trends and are led by quality management teams.
As of December 2022, the firm’s $8.16-billion 13F equity portfolio contains 55 stocks, with seven new positions and a quarterly turnover ratio of 19%. The top-three sectors in terms of weight include technology, consumer cyclical and communication services, with weights of 44.74%, 27.80% and 17.89%.
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.
Amazon.com
Tiger Global added 5,914,931 shares of Amazon.com (AMZN, Financial), boosting the position by 221.08% and its equity portfolio by 6.09%. Shares averaged $98.78 during the fourth quarter.
GuruFocus’ GF Value Line labeled the Seattle-based e-commerce giant a possible value trap based on the company’s low price-to-GF-Value ratio of 0.49 as of Friday and poor momentum rank of 2 out of 10. The low momentum rank stems from a 6-1 month momentum index of -31.47%, which underperforms over 85% of global competitors.
Despite low ranks for momentum and GF Value, Amazon.com has a GF Score of 82 out of 100, driven by a growth rank of 10 out of 10, a profitability rank of 8 out of 10 and a financial strength rank of 6 out of 10.
Meta Platforms
Tiger Global purchased 3,455,833 shares of Meta Platforms (META, Financial), expanding the position by 76.99% and its equity portfolio by 5.09%.
Shares of Meta averaged $117.43 during the fourth quarter; the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.46 as of Friday.
The Menlo Park, California-based social media giant has a GF Score of 89 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a financial strength rank of 7 out of 10 and a rank of 4 out of 10 for GF Value and momentum.
Meta’s profitability ranks 9 out of 10 on several positive investing signs, which include a three-star business predictability rank and an operating margin that outperforms approximately 86% of global competitors.
Datadog
The firm sold 4,809,031 shares of Datadog (DDOG, Financial), slicing 83.27% of the position and 3.92% of its equity portfolio.
Shares of Datadog averaged $78.12 during the fourth quarter; the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.37 as of Friday.
The New York-based machine data cloud software company has a GF Score of 50 out of 100 based on a financial strength rank of 6 out of 10, a GF Value rank of 4 out of 10 and a rank of 2 out of 10 for momentum and profitability. Despite this, the stock does not have enough data to compute a growth rank and thus, the GF Score may give an incomplete picture of the stock’s potential.
JD.com
The firm sold 8,048,177 shares of JD.com (JD, Financial), trimming 26.95% of its position and 3.72% of its equity portfolio.
Shares of JD.com averaged $50.31 during the fourth quarter; the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.45 as of Friday.
The Beijing-based e-commerce company has a GF Score of 81 out of 100 based on a growth rank of 10 out of 10, a financial strength rank of 7 out of 10, a profitability rank of 5 out of 10 and a rank of 4 out of 10 for momentum and GF Value.
Li Auto
The firm sold all 17,211,345 shares of Li Auto (LI, Financial), chopping 3.64% of its equity portfolio. Shares averaged $19.02 during the fourth quarter.
The Beijing-based electric vehicle company's financial strength ranks 7 out of 10 on several positive investing signs, which include a high Altman Z-score of 3.86 and a cash-to-debt ratio that outperforms approximately 80% of global competitors.
Despite high financial strength, Li Auto has a profitability rank of 2 out of 10 yet not enough data to compute ranks for growth, GF Value and momentum. Thus, the company’s GF Score of 23 out of 100 may give an incomplete picture of the stock’s potential.
