Before his death in August 2022, legendary investor Julian Robertson was not just known for his leadership of Tiger Management (Trades, Portfolio), but also for taking a group of protégés under his wing. These student investors, many of whom later opened their own practices, are commonly referred to as “tiger cubs.”
As they were mentored by the same investor, it is no surprise that some of these guru fund managers have similar styles and even invest in some of the same stocks. An example of this is Chase Coleman (Trades, Portfolio), who now heads up Tiger Global Management, and Philippe Laffont (Trades, Portfolio), leader of Coatue Management.
Coleman’s New York-based hedge fund focuses on small-cap stocks and technology companies, especially startups. Meanwhile, Laffont’s firm, which is also headquartered in the Big Apple, takes a fundamental analysis approach to investing with both long-short strategies and top-down stock picking.
As of the end of the second quarter, the Aggregated Portfolio, a Premium GuruFocus feature based on 13F filings, found both gurus have positions in a number of tech stocks, including Microsoft Corp. (MSFT, Financial), Nvidia Corp. (NVDA, Financial), Intuit Inc. (INTU, Financial), Taiwan Semiconductor Manufacturing Co. (TSM, Financial) and Lam Research Corp. (LRCX, Financial).
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.
Microsoft
Coleman curbed his Microsoft (MSFT, Financial) stake by 4.43% to 5.67 million shares, while Laffont increased his position by 67.67% during the quarter to 5.29 million shares. The combined equity portfolio weight is 24.96%.
The Redmond, Washington-based software company has a $2.47 trillion market cap; its shares were trading around $333.05 on Tuesday with a price-earnings ratio of 34.37, a price-book ratio of 12 and a price-sales ratio of 11.75.
The GF Value Line suggests the stock is fairly valued currently based on its historical ratios, past financial performance and analysts’ future earnings projections.
At 97 out of 100, the GF Score indicates the company has high outperformance potential on the back of high ratings for profitability, growth and financial strength as well as more moderate value and momentum ranks.
GuruFocus data shows Coleman has gained an estimated 132.27% on his investment since the fourth quarter of 2016, while Laffont has generated a 40.81% return since the third quarter of 2021.
Of the gurus invested in Microsoft, Bill Gates (Trades, Portfolio)’ foundation trust has the largest stake with 0.53% of its outstanding shares. Ken Fisher (Trades, Portfolio), Dodge & Cox, PRIMECAP Management (Trades, Portfolio), the Harbor Capital Appreciation Fund (Trades, Portfolio) and several other gurus also own the stock.
Nvidia
In the second quarter, Coleman boosted his Nvidia (NVDA, Financial) position by 1,332.65%, while Laffont trimmed his stake by 6.73%. They have a combined equity portfolio weight of 11.85% in the stock.
The semiconductor chip manufacturer, which is headquartered in Santa Clara, California, has a market cap of $1.12 trillion; its shares were trading around $452.76 on Tuesday with a price-earnings ratio of 109.36, a price-book ratio of 40.68 and a price-sales ratio of 34.55.
According to the GF Value Line, the stock is modestly overvalued currently.
The GF Score of 82 implies the company has good outperformance potential, driven by solid ratings for profitability, growth and financial strength. The value and momentum ranks, however, are low.
GuruFocus estimates Coleman has gained 40.11% on his investment so far, while Laffont has gained roughly 88.91%.
With a 0.63% stake, Baillie Gifford (Trades, Portfolio) is Nvidia’s largest guru shareholder. Other top guru investors include Fisher, Harbor Capital, Frank Sands (Trades, Portfolio), PRIMECAP, Jim Simons (Trades, Portfolio)’ Renaissance Technologies, Steven Cohen (Trades, Portfolio) and David Tepper (Trades, Portfolio).
Intuit
Coleman increased his Intuit (INTU, Financial) holding by 136.91% in the second quarter, while Laffont boosted his stake by 25.05%. They have a combined portfolio weight of 5.34% in the stock.
The Mountain View, California-based software company, which is known for its TurboTax and QuickBooks services, has a $152.23 billion market cap; its shares traded around $543.18 on Tuesday with a price-earnings ratio of 64.36, a price-book ratio of 8.81 and a price-sales ratio of 10.69.
Based on the GF Value Line, the stock appears to be fairly valued currently.
The GF Score of 96 means the company has high outperformance potential. While it received high ratings for four of the criteria, the value rank is more moderate.
GuruFocus found Coleman has gained an estimated 31.74% on the investment, while Laffont has generated a 23.93% return.
Fisher is Intuit’s largest guru shareholder with a 0.94% stake. PRIMECAP and Andreas Halvorsen (Trades, Portfolio) also have notable holdings.
Taiwan Semiconductor Manufacturing
Coleman upped his Taiwan Semiconductor Manufacturing (TSM, Financial) stake by 136.91% during the second quarter, while Laffont increased his holding by 25.05%. The gurus have a combined portfolio weight of 4.92% in the stock.
The Taiwanese manufacturer of semiconductor chips has a market cap of $473.83 billion; its shares traded around $91.36 on Tuesday with a price-earnings ratio of 15.14, a price-book ratio of 4.44 and a price-sales ratio of 6.34.
The GF Value Line suggests the stock is significantly undervalued currently.
Supported by solid ratings for all five criteria, the GF Score of 100 implies the company has high outperformance potential.
Coleman has lost roughly 4.35% on his investment so far. GuruFocus data shows Laffont has gained around 0.83%.
Holding a 0.57% stake, Fisher is the company’s largest guru shareholder. Taiwan Semiconductor is also being held by First Eagle Investment (Trades, Portfolio), Baillie Gifford (Trades, Portfolio), Steve Mandel (Trades, Portfolio), Sands, Ruane Cunniff (Trades, Portfolio), Ron Baron (Trades, Portfolio) and many others.
Lam Research
During the quarter, Coleman expanded his Lam Research (LRCX, Financial) holding by 240.75%, while Laffont cut back his position by 3.42%. They have a combined equity portfolio weight of 4.35% in the stock.
The manufacturer of semiconductor fabrication equipment, which is headquartered in Fremont, California, has an $86.44 billion market cap; its shares were trading around $652.29 on Tuesday with a price-earnings ratio of 19.68, a price-book ratio of 10.59 and a price-sales ratio of 5.11.
According to the GF Value Line, the stock is fairly valued currently.
The GF Score of 92 indicates the company has high outperformance potential due to high ratings for profitability, growth and financial strength, a more moderate momentum rank and a low value grade.
Since establishing the position in the first quarter, GuruFocus estimates Coleman has gained 20.63%. Laffont has gained approximately 27.81% since entering the position in the third quarter of 2022.
Lam Research’s largest guru shareholder is Fisher with a 2.11% stake. Other top guru investors include Sands, Jeremy Grantham (Trades, Portfolio), Tepper and Ray Dalio (Trades, Portfolio)’s Bridgewater Associates.
Other common holdings and portfolio composition
Additional tech stocks the two gurus have in common are Uber Technologies Inc. (UBER, Financial) and CrowdStrike Holdings Inc. (CRWD, Financial).
Coleman’s $11.97 billion equity portfolio, which was composed of 41 stocks as of the end of the second quarter, is largely invested in the technology and communication services sectors.
Laffont’s $20.41 billion equity portfolio, which consisted of 91 stocks as of June 30, is heavily invested in the technology and communication services sectors.
