"Tracking Lone Pine Capital Portfolio – Q3 2022 Update"
"Lone Pine Capital’s 13F portfolio value remained almost steady at $10.61B this quarter.They increased PayPal and added Autodesk and TransDigm Group while dropping Alphabet, Atlassian, and ServiceNow.The top three positions are Workday, Amazon, and PayPal. They add up to ~21% of the portfolio.This article is part of a series that provides an ongoing analysis of the changes made to Lone Pine Capital’s 13F portfolio on a quarterly basis. It is based on their regulatory  filed on 11/14/2022. Please visit our  article for an idea on their investment philosophy and our  for the fund’s moves during Q2 2022.This quarter, Lone Pine’s 13F portfolio value remained almost steady at $10.61B. The number of holdings increased from 30 to 31. The top three positions are at ~21% while the top five are ~34% of the 13F assets: Workday, Amazon, PayPal, Bath & Body Works, and Microsoft.Note: Stephen Mandel stepped down from managing investments at Lone Pine Capital in January 2019 in a previously announced (September 2017) move. He is currently a managing director at the firm. Stephen Mandel worked at Tiger Management under Julian Robertson for eight years starting in the late 1980s, making him a bona fide tiger cub. To know more about Julian Robertson and his legendary Tiger Management, check out .New Stakes:Autodesk Inc. (ADSK) and TransDigm Group (TDG): ADSK is a ~4% of the portfolio stake established this quarter at prices between ~$171 and ~$234 and the stock currently trades at ~$197. The 3.65% TDG position was purchased at prices between ~$525 and ~$677 and it is now at ~$615.PTC Inc. (PTC), ICICI Bank (IBN), and HDFC Bank (HDB): PTC is a 2.48% of the portfolio position purchased this quarter at prices between ~$100 and ~$126 and the stock currently trades at ~$122. The 2.31% of the portfolio IBN stake was established at prices between ~$18 and ~$23 and it is now at $22.85. HDB is a small ~1% of the portfolio position purchased at prices between ~$56 and ~$68 and it now goes for ~$68.Cheniere Energy (LNG) and Chesapeake Energy (CHK): These are minutely small (less than ~0.02% of the portfolio each) stakes established this quarter.Stake Disposals:ServiceNow Inc. (NOW): NOW was a 5.79% stake established in Q2 2017 at prices between $84.50 and $118. The position has since wavered. Recent activity follows. Q2 2020 saw a one-third increase at prices between $250 and $403. Q4 2020 saw similar selling at prices between ~$476 and ~$565. There was a stake doubling in H1 2021 at prices between ~$454 and ~$595. Next two quarters had seen a ~20% selling at prices between ~$545 and ~$702. That was followed with a ~35% reduction last quarter at prices between ~$412 and ~$598. The disposal this quarter was at prices between ~$370 and ~$516. The stock is now at ~$396.Alphabet Inc. (GOOG): GOOG was a 3.53% of the portfolio stake established last quarter at prices between ~$106 and ~$144. It was sold this quarter at prices between ~$96 and ~$123. The stock is now at ~$94.Atlassian Corp plc (TEAM): TEAM was a 2.86% of the portfolio position established in Q1 2022 at prices between ~$239 and ~$350. This quarter saw the stake sold at prices between ~$185 and ~$289.  The stock is now at ~$136.Shopify Inc. (SHOP): SHOP stake was built in Q2 2019 at prices between ~$20 and ~$33. There was a one-third increase in Q4 2019 at prices between ~$29 and ~$41. Q1 2022 saw a ~25% reduction at prices between ~$51 and ~$136. Last quarter saw the stake almost sold out at prices between ~$30 and $73. The stock currently trades at $38.64. The remainder stake was sold this quarter.Fair Isaac Corp (FICO) and VTEX Inc. (VTEX): These two minutely small (less than ~0.15% of the portfolio each) positions were disposed during the quarter.Stake Decreases:Amazon.com (AMZN): AMZN is currently the second largest 13F stake at ~7% of the portfolio. It was established in Q4 2017 at prices between ~$48 and ~$60. The position has wavered. Recent activity follows. The three quarters through Q4 2020 saw a ~55% reduction at prices between ~$95 and ~$172 while next quarter there was a ~90% stake increase at prices between ~$148 and ~$169. Q3 2021 saw a ~25% selling at prices between ~$159 and ~$187 while next quarter there was a ~70% stake increase at prices between ~$160 and ~$185. The position was reduced by ~30% in Q1 2022 at prices between ~$136 and ~$170. That was followed with a ~25% selling this quarter at prices between ~$106 and ~$145. The stock is now at ~$90.Bath & Body Works (BBWI) previously L Brands: The large (top five) 6.34% BBWI stake was purchased in Q1 2020 at prices between ~$9 and ~$25 and it is now at $42.15. There was a ~15% selling in the last three quarters.Note: Lone Pine Capital has a ~9% ownership stake in Bath & Body Works. Their implied cost-basis is understated in the prices above as ~$14 per share in value came back to them with the Victoria’s Secret spinoff transaction (one share of VSCO for every three shares held) in July.Microsoft Corporation (MSFT): MSFT is now at 6.22% of the portfolio. It was established in Q2 2017 at prices between $65 and $72.50. There was a ~15% trimming in Q4 2017 at prices between $74 and $87 while next quarter saw a ~26% increase at prices between $85 and $97. The five quarters thru Q4 2019 had seen a ~63% selling at prices between $98 and $159 while next quarter saw a ~17% stake increase at prices between ~$135 and ~$189. Q1 2021 saw a ~25% stake increase at prices between ~$212 and ~$245 while in the next two quarters there was a ~40% selling at prices between ~$242 and ~$305. That was followed with a ~43% reduction in the last two quarters at prices between ~$233 and ~$315. The stock is now at ~$247.Note: MSFT has had a previous round-trip: It was a large (top five) 4.93% of the portfolio position in Q4 2016. The bulk of the position was from H1 2015 at prices between $40 and $48. The five quarters thru Q3 2016 had seen a combined ~50% selling at prices between $43 and $58. The elimination in Q1 2017 happened at prices between $62 and $66.LPL Financial Holdings (LPLA), EPAM Systems (EPAM), EQT Corporation (EQT): LPL is a ~4% of the portfolio stake established last quarter at prices between ~$168 and ~$219 and the stock currently trades at ~$222. There was a ~14% trimming this quarter. The 4.24% EPAM position was purchased last quarter at prices between ~$265 and ~$348 and it is now at ~$346. There was a minor ~2% trimming this quarter. The 2.28% EQT position was purchased last quarter at prices between ~$33 and ~$50 and it now goes for $35.69. There was a ~7% trimming this quarter.Thermo Fisher Scientific (TMO): TMO is a 4.23% of the portfolio position established in the last two quarters at prices between ~$500 and ~$645 and the stock currently trades at ~$568. There was a ~5% trimming this quarter.Meta Platforms (META): The 3.73% of the portfolio META stake was established in Q1 2022 at prices between ~$187 and ~$339 and it is now below that range at ~$115. There was a ~37% increase last quarter at prices between ~$156 and ~$234. This quarter saw a ~52% reduction at prices between ~$134 and ~$183.First Citizens Bancshares (FCNCA) and Grove Collaborative (GROV): These two very small (less than ~0.20% of the portfolio each) stakes were reduced during the quarter.Stake Increases:Booking Holdings (BKNG) and PayPal Holdings (PYPL): The 3.93% BKNG position was purchased last quarter at prices between ~$1749 and ~$2375 and it is now at ~$2011. There was a ~7% stake increase this quarter. PYPL is a 6.73% of the portfolio stake established during the last two quarters at prices between ~$69 and ~$122 and it currently trades at ~$74.Taiwan Semi (TSM): TSM is a fairly large 6.21% of the portfolio position purchased in Q1 2022 at prices between ~$99 and ~$141 and the stock currently trades well below that range at ~$81. Last two quarters have seen a ~20% stake increase.UnitedHealth Group (UNH): The 4.47% UNH stake was established in Q2 2017 at prices between $164 and $187 and increased by ~160% the following quarter at prices between $185 and $200. The position has wavered. Recent activity follows. There was a ~20% reduction in Q4 2020 at prices between ~$304 and ~$357. That was followed with a ~25% selling in Q4 2021 at prices between ~$387 and ~$506. Last two quarters saw a roughly two-thirds reduction at prices between ~$452 and ~$546. The stock is now at ~$548. There was a ~17% stake increase this quarter.Kept Steady:Workday Inc. (WDAY): WDAY is currently the top position at 7.20% of the portfolio. It was established last year at prices between ~$221 and ~$301 and it is now well below that range at ~$169. Last two quarters saw a ~15% trimming.Dick’s Sporting Goods (DKS): The 4.94% DKS stake was purchased in Q1 2022 at prices between ~$98 and ~$118 and the stock currently trades at ~$122. Last quarter saw a ~34% increase at prices between ~$71 and ~$108.Mastercard (MA) and Visa (V): These fairly large stakes were established in Q4 2021. MA is a 4.59% of the portfolio position purchased at prices between ~$306 and ~$370 and the stock currently trades at ~$351. The position was reduced by ~70% over the last two quarters at prices between ~$309 and ~$397. The 3.62% of the portfolio V position was established at prices between ~$190 and ~$234 and it is now at ~$209. The stake was reduced by ~55% over the last two quarters at prices between ~$189 and ~$235.RH Inc. (RH): The 4.11% of the portfolio RH stake was purchased in Q2 2021 at prices between ~$588 and ~$720. Next quarter saw a ~25% stake increase at prices between ~$652 and ~$739. Q4 2021 saw a similar increase at prices between ~$527 and ~$690. Last two quarters also saw a ~12% further increase. The stock is now well below their purchase price ranges at ~$266.Note: Lone Pine Capital has a ~7.8% ownership interest in RH Inc.Block Inc. (SQ) previously Square: The SQ stake was established in Q3 2020 at prices between ~$113 and ~$165. The position was almost sold out in Q4 2021 at prices between ~$158 and ~$265. The stake was rebuilt next quarter at prices between ~$89 and ~$164 but again sold down last quarter at prices between ~$58 and ~$145. The stock is now at $63.37.Note: Square had a previous round-trip. It was a ~2% position built from Q2 2019 at prices between $57 and $82 and sold in Q2 2020 at prices between ~$44 and ~$105.AvidXchange Holdings (AVDX), Marqeta Inc. (MQ), Proshares VIX Sh Trm Fut (FIXY) Puts, and Sweetgreen Inc. (SG): These are small (less than ~1.25% of the portfolio each) positions kept steady this quarter.Note: Lone Pine has ~7% ownership stake each in VTEX and Marqeta.The spreadsheet below highlights changes to Mandel’s 13F stock holdings in Q3 2022:Source: John Vincent. Data constructed from Lone Pine Capital’s 13F filings for Q2 2022 and Q3 2022.Regulatory filings from 5/28/2022 to 9/2/2022: 13G – 6/27 – GROV – 10.5M shares – 9.99% of business."