Lone Pine Capital, the firm founded by Steve Mandel (Trades, Portfolio), disclosed in a 13F regulatory portfolio filing that its top trades during the fourth quarter of 2022 included new holdings in Advanced Micro Devices Inc. (AMD, Financial) and Moderna Inc. (MRNA, Financial), a boost to its holding in Amazon.com Inc. (AMZN, Financial) and the closure of its positions in PayPal Holdings Inc. (PYPL, Financial), Autodesk Inc. (ADSK, Financial) and Meta Platforms Inc. (META, Financial).
Prior to founding the Greenwich, Connecticut-based firm, Mandel worked as senior managing director and consumer analyst at Tiger Management (Trades, Portfolio). Lone Pine builds its equity portfolio using fundamental analysis and bottom-up stock picking through both value and growth methodologies. The firm invests in both long and short equity positions.
As of December 2022, Lone Pine’s $10.48-billion 13F equity portfolio contains 30 stocks, with seven new positions and a quarterly turnover ratio of 15%. The top-four sectors in terms of weight are technology, consumer cyclical, financial services and health care, with weights of 33.60%, 32.13%, 18.35% and 10.79%.
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.
Advanced Micro Devices
Lone Pine invested in 3,910,268 shares of Advanced Micro Devices (AMD, Financial), giving the position a 2.42% equity portfolio weight. Shares averaged $66.01 during the fourth quarter.
GuruFocus’ GF Value Line labeled the Santa Clara, California-based semiconductor a possible value trap based on its low price-to-GF-Value ratio of 0.58 as of Thursday and a poor momentum rank of 5 out of 10.
Despite low momentum, Advanced Micro Devices has a GF Score of 91 out of 100 based on a growth rank of 10 out of 10, a financial strength rank of 9 out of 10, a GF Value rank of 8 out of 10 and a profitability rank of 7 out of 10.
The company’s financial strength ranks 9 out of 10 on several positive investing signs, which include a high Altman Z-score of 6.35 and a debt-to-equity ratio that outperforms approximately 78% of global competitors.
Moderna
The firm invested in 1,352,518 shares of Moderna (MRNA, Financial), giving the position 2.32% equity portfolio weight. Shares averaged $163.51 during the fourth quarter.
GuruFocus’ GF Value Line labeled the Cambridge, Massachusetts-based biotech company a possible value trap based on its low price-to-GF-Value ratio of 0.04 as of Thursday.
Moderna has a GF Score of 72 out of 100 based on a financial strength rank of 9 out of 10, a growth rank of 8 out of 10, a momentum rank of 6 out of 10, a profitability rank of 3 out of 10 and a GF Value rank of 2 out of 10.
The company’s financial strength ranks 9 out of 10 on several positive investing signs, which include a high Altman Z-score of 8.31 and a debt-to-equity ratio that outperforms approximately 64% of global competitors.
Amazon.com
The firm added 2,955,699 shares of Amazon.com (AMZN, Financial), expanding the position by 44.2% and its equity portfolio by 2.37%. The position represents the firm’s third largest holding as of the fourth quarter.
Shares of Amazon.com averaged $98.78 during the fourth quarter.
GuruFocus’ GF Value Line labeled the Seattle-based e-commerce giant a possible value trap based on its low price-to-GF-Value ratio of 0.48 as of Thursday and a poor momentum rank of 4 out of 10.
Despite low momentum, Amazon.com has a GF Score of 86 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 8 out of 10, a financial strength rank of 6 out of 10 and a GF Value rank of 4 out of 10.
PayPal
The firm sold all 8,294,340 shares of PayPal (PYPL, Financial), chopping 6.73% of its equity portfolio.
Shares of PayPal averaged $80.04 during the fourth quarter; the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.32 as of Thursday.
The San Jose, California-based electronic payment company has a GF Score of 89 out of 100 based on a rank of 10 out of 10 for profitability and growth, a momentum rank of 7 out of 10, a financial strength rank of 6 out of 10 and a GF Value rank of 2 out of 10.
Autodesk
The firm sold all 2,221,479 shares of Autodesk (ADSK, Financial), trimming 3.91% of its equity portfolio.
Shares of Autodesk averaged $200.68 during the fourth quarter; the stock is significantly undervalued based on its price-to-GF-Value ratio of 0.64 as of Thursday.
The San Rafael, California-based application software company has a GF Score of 83 out of 100 based on a rank of 8 out of 10 for momentum and GF Value, a growth rank of 7 out of 10, a profitability rank of 6 out of 10 and a financial strength rank of 5 out of 10.
Meta Platforms
The firm sold all 2,913,821 shares of Meta Platforms (META, Financial), trimming 3.73% of its equity portfolio.
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 Thursday.
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.
