Dollar General Corp. (DG), Twenty-First Century Fox (FOXA), Vipshop Holdings Ltd – ADR (VIPS): Billionaires Chase Coleman and Feroz Dewan Love These Stocks
By Javier Hasse in Hedge Funds, News
Published: August 21, 2014 at 8:59 am
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As we reported last month, Tiger Global Management’s* star hedge fund Tiger Global, managed by Feroz Dewan, returned 6.1% in June, and more than 15.2% in the first semester of 2014, widely outperforming the S&P 500 index. In last month’s article, we took a look at the main stock picks driving this performance, and some of them are present amongst the fund’s largest equity positions. So, let’s take a look at these in order to find out if any of them are still attractive.

Tiger Global’s largest long equity stake was placed in Twenty-First Century Fox Inc (NASDAQ:FOXA), a $77.9 billion market cap diversified media and entertainment company. Following a 4% decrease in its exposure to the company, the fund owns 18.51 million shares of Twenty-First Century Fox Inc (NASDAQ:FOXA), worth more than $650 million.

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Chase Coleman Tiger Global Management

Over the second quarter, Twenty-First Century Fox Inc (NASDAQ:FOXA)’s stock gained 11.2%, contributing to Tiger Global’s above-average returns. As the price escalated, the fund could have seen a chance to make some money, and sold some of its stock. However, its stake still makes it the third largest hedge fund shareholder of record of the company.

Other funds with even larger stakes in Twenty-First Century Fox Inc (NASDAQ:FOXA) are Donald Yacktman’s Yacktman Asset Management, which last declared ownership of 44.22 million shares, down from 58.62 million shares and Boykin Curry’s Eagle Capital Management, which owns more than 20.65 million shares of the company, up by 2% over the quarter.

Second in line is Vipshop Holdings Ltd – ADR (NYSE:VIPS), a $12.56 billion market cap Chinese online discount retailer. Tiger Global last declared ownership of more than 2.42 million shares. This position, worth $456 million, makes it the largest hedge fund shareholder of record –amongst those that we track, and accounts for roughly 5.8% of its total equity portfolio.

Vipshop Holdings Ltd – ADR (NYSE:VIPS)’s stock has been in an uptrend for a while now. Year to date, the stock gained more than 157%, and, over 2013, the upsurge reached 535%. Although Tiger Global could not fully reap the profits from this increment, because it started a position in the company over the fourth quarter of 2014, the gains were still large.

Another fund that largely profited from Vipshop Holdings Ltd – ADR (NYSE:VIPS) is John Burbank’s Passport Capital, which last disclosed ownership of 1.59 million shares, after the sale of 201,434 shares over the second quarter.

Last in this list is Dollar General Corp. (NYSE:DG), a $19.38 billion market cap discount retailer of which Tiger Global owns 7.89 million shares. Although the stake remained untouched over the second quarter, it increased in market value. The fund’s position at Dollar General Corp. (NYSE:DG) is now worth more than $452 million, after the stock gained more than 3.5% between April and the end of June.

Another major hedge fund that seems quite bullish about is Dollar General Corp. (NYSE:DG) is Larry Robbins’ Glenview Capital, which boosted its exposure by 26% over the quarter, and now owns 8.21 million shares.

* Tiger Global Management is an asset management firm founded and managed by Chase Coleman

Disclosure: Javier Hasse holds no position in any stocks or funds mentioned.

Category: Hedge Funds, News

Tags: Boykin Curry, Chase Coleman, Dollar General Corp (DG), Donald Yacktman, Eagle Capital Management, Feroz Dewan, Glenview Capital, Hedge Fund:25, John Burbank, Larry Robbins, NASDAQ:FOXA, NYSE:DG, NYSE:VIPS, Passport Capital, Tiger Global Management, Twenty-First Century Fox (FOXA), Vipshop Holdings Ltd - ADR (VIPS), Yacktman Asset Management

SPDR S&P 500 ETF Trust (SPY): Is Soros Aiming For a Big Correction?
By Ritesh Anan in Economy, Hedge Funds, Macroeconomic Predictions, News
Published: August 21, 2014 at 8:32 am
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Billionaire investor George Soros boosted his position in SPDR S&P 500 ETF Trust (NYSEARCA:SPY)’s Puts by around a sixfold during the second quarter of 2014. With the markets not correcting significantly, Soros’ huge bearish position, which accounts to $2.21 billion or 17% of his portfolio,  is raising many eyebrows on the Street. Brian Wesbury, Chief Economist and First Trust Advisors and John Spallanzani, Director of Sales and Trading at GFI Group discussed Soros’ huge bearish position in SPDR S&P 500 ETF Trust (NYSEARCA:SPY) on Fox Business.

“I think he just sees a low volatility right, So, that’s a perfect opportunity to hedge your portfolio, I think Jana Partners took out $4 billion worth of protection just recently. I think, why not hedge a little bit of your portfolio when volatility is trading in a 11-12 range. So, I think, they hedged before volatility spiked and what was going on in Ukraine and Russia and obviously I don’t think they covered those bets [...],” Spallanzani said. image: hedge fund research
Spallanzani remarked that people like George Soros are traders and if they get an environment where volatility is low such that buying SPDR S&P 500 ETF Trust (NYSEARCA:SPY) Puts is cheap, they are going to buy it just to hedge their portfolios. He feels  positions like the one Soros has taken on SPDR S&P 500 ETF Trust (NYSEARCA:SPY) are not necessarily a good indicator of where people like George Soros think the market will move. Wesbury bought what Spallanzani said, agreeing that it might just be a low cost insurance, though he revealed that he is taking the other side of the trade i.e. he is bullish on the market. Wesbury thinks that even though S&P is trading at highs, the market is still relatively cheap and is almost 12% to 15% undervalued.

“[...] Earnings in the second quarter for the S&P 500 are going to be up 11% over a year ago, expectations were only for 4% growth. So, the market is beating in earnings, it’s beating in revenues, the economy is coming in stronger. I think this is the time to be long stocks not short,” Wesbury said.

Disclosure: None

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