Coatue Management, the firm founded by Philippe Laffont (Trades, Portfolio), disclosed in a regulatory filing that its top five trades during the fourth quarter of 2022 included expansions to its holdings of Alibaba Group Holding Ltd. (BABA, Financial) and Advanced Micro Devices (AMD, Financial) and reductions to its positions in Rivian Automotive Inc. (RIVN, Financial), Uber Technologies Inc. (UBER, Financial) and The Walt Disney Co. (DIS, Financial).
A former protégé of Tiger Management (Trades, Portfolio)'s Julian Robertson, Laffont founded the New York-based firm in 1999. Coatue invests in domestic and international holdings using fundamental analysis and top-down stock picking.
As of December 2022, the firm’s $8.91 billion 13F equity portfolio contains 72 stocks, with 12 new positions and a quarterly turnover ratio of 32%. The top four sectors in terms of weight are technology, consumer cyclical, communication services and health care, which represnt 40.92%, 24.06%, 17.32% and 14.01% of the equity portfolio.
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.
Alibaba
Coatue invested in 4,796,186 shares of Alibaba (BABA, Financial), giving the stake 4.74% equity portfolio weight. Shares averaged $78.85 during the fourth quarter.
The transaction propelled Alibaba to the firm’s fifth-largest holding with a portfolio weight of 4.94%.
GuruFocus’ GF Value Line labeled the Hangzhou, Zhejiang-based e-commerce giant significantly undervalued based on its price-to-GF Value ratio of 0.41 as of Tuesday.
Alibaba has a GF Score of 91 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, a momentum rank of 6 out of 10 and a GF Value rank of 4 out of 10.
The company’s profitability ranks 9 out of 10 on several positive investing signs, which include a 3.5-star business predictability rank and an operating margin that outperforms approximately 84% of global competitors.
Other gurus with holdings in Alibaba include David Herro (Trades, Portfolio)’s Oakmark International Fund and PRIMECAP Management (Trades, Portfolio).
Advanced Micro Devices
The firm added 4,845,580 shares of Advanced Micro Devices (AMD, Financial), boosting the position by 611.12% and its equity portfolio by 3.52%.
Shares of Advanced Micro Devices averaged $66.01 during the fourth quarter; the stock is a possible value trap based on its low price-to-GF Value ratio of 0.60 as of Tuesday.
The Santa Clara, California-based microchip processing company has a GF Score of 91 out of 100 based on a rank of 9 out of 10 for financial strength and growth, a GF Value rank of 8 out of 10 and a rank of 7 out of 10 for momentum and profitability.
Advanced Micro Devices’ financial strength ranks 9 out of 10 on several positive investing signs, which include a high Altman Z-score of 6.68 and a debt-to-equity ratio that outperforms approximately 78% of global competitors.
Rivian
The firm sold 11,266,429 shares of Rivian (RIVN, Financial), slicing 57.49% of the position and 4.31% of its equity portfolio.
Although shares of Rivian averaged $29.44 during the fourth quarter, the stock tumbled 14% on Tuesday on the company’s plan to raise $1.3 billion in cash through the sale of convertible notes. The company’s financial strength ranks 6 out of 10 on the back of cash-to-debt ratios outperforming over 80% of global competitors despite having a modest Piotroski F-score of 5 out of 9 and a low Altman Z-score of 0.89.
Despite good financial strength, Rivian has a profitability rank of 1 out of 10 but not enough data to compute ranks for growth, GF Value and momentum. Thus, the GF Score of 20 out of 100 may give an incomplete picture of the company’s potential.
Uber Technologies
The firm sold 12,935,490 shares of Uber Technologies (UBER, Financial), chopping 77.79% of the position and 3.98% of its equity portfolio. Shares averaged $27.36 during the fourth quarter.
GuruFocus ranks the San Francisco-based rideshare company a possible value trap based on the company’s low price-to-GF Value ratio of 0.46 as of Tuesday and poor ranks for financial strength and profitability. Key warning signs include a low Altman Z-score of 0.39 and a gross profit margin that has declined by approximately 4.30% per year and underperforms more than 55% of global competitors.
Uber has a GF Score of 70 out of 100 based on a momentum rank of 10 out of 10, a growth rank of 6 out of 10, a profitability rank of 3 out of 10 and a rank of 4 out of 10 for GF Value and financial strength.
Walt Disney
The firm sold 2.95 million shares of Walt Disney (DIS, Financial), slicing 95.25% of the position and 3.23% of its equity portfolio.
Shares of Walt Disney averaged $95.65 during the fourth quarter; the stock is significantly undervalued based on its price-to-GF Value ratio of 0.63 as of Tuesday.
The Burbank, California-based entertainment giant has a GF Score of 78 out of 100 based on a rank of 8 out of 10 for GF Value and profitability, a growth rank of 4 out of 10 and a rank of 5 out of 10 for momentum and financial strength.
