"Tracking Stephen Mandel’s Lone Pine Capital Portfolio – Q4 2019 Update"
"Stephen Mandel’s 13F portfolio value increased ~11% from $17B to $18.86B. The number of positions increased from 37 to 41.Lone Pine Capital increased Shopify, MasterCard, and Facebook while dropping Activision Blizzard, S&P Global, and Booking Holdings.The top three positions are Alibaba Group Holdings, UnitedHealth Group, and Amazon.com. They add up to ~19% of the portfolio.This article is part of a series that provides an ongoing analysis of the changes made to Stephen Mandel’s 13F portfolio on a quarterly basis. It is based on Mandel’s regulatory  filed on 02/14/2020. Please visit our  article for an idea on his investment philosophy and our  for the fund’s moves during Q3 2019.This quarter, Mandel’s 13F portfolio value increased ~11% from $17B to $18.86B. The number of holdings increased from 37 to 41. The top three positions are at ~19% while the top five are at 28% of the 13F assets: Alibaba Group Holdings, UnitedHealth Group, Amazon.com, Adobe Systems, and Netflix.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 .Note: Stephen Mandel stepped down from managing investments in January 2019 in a previously announced (September 2017) move. He is still a managing director at the firm.New Stakes:PayPal Holdings (PYPL): PYPL is a 1.93% of the portfolio stake purchased this quarter at prices between $96.50 and $110 and the stock currently trades at ~$113.Match Group (MTCH), Luckin Coffee (LK), DexCom Inc. (DXCM), Under Armour (UA), Altria Group (MO), and Illumina Inc. (ILMN): These are small (less than ~1% of the portfolio each) new positions established this quarter.Note: Lone Pine has a ~8% ownership stake in Match Group, ~11% stake in Lucking Coffee, and ~7% stake in Under Armour.IAC Interactive (IACI), CSX Corp (CSX), Carvana Company (CVNA), XP Inc. (XP), and Hubspot Inc. (HUBS): These are minutely small positions established this quarter.Stake Disposals:Booking Holdings (BKNG): BKNG was a 2.44% of the portfolio stake purchased in Q4 2018 at prices between $1617 and $1998. There was a one-third selling last quarter at prices between $1787 and $2077. The disposal this quarter was at prices between $1838 and $2073. The stock currently trades at $1729Note: Booking Holdings has seen a previous roundtrip. It was a large 5.69% portfolio position established in Q3 2017 at prices between $1790 and $2049 and increased by roughly one-third the following quarter at prices between $1646 and $1942. The position was disposed in Q3 2018 at prices between $1825 and $2087.D R Horton Inc. (DHI): DHI was a 1% of the portfolio position purchased in Q1 2019 at prices between $35 and $42.50. Next quarter saw a ~90% stake increase at prices between $41.50 and $46.75. There was a ~75% selling last quarter at prices between $43.50 and $53. The remaining stake was eliminated this quarter at prices between $51 and $56. The stock currently trades at $54.83.S&P Global Inc. (SPGI): SPGI was a medium-sized 2.49% of the portfolio position established in Q1 2019 at prices between $164 and $210. Next quarter saw a ~38% reduction at prices between $209 and $232. There was a ~11% selling last quarter and that was followed with the disposal this quarter at prices between $236 and $275. The stock currently trades at $289.Tiffany & Co (TIF): A ~3.5% TIF position was established in Q4 2018 at prices between $74 and $128. Last two quarters had seen minor trimming. Last November, LVMH (LVMUY) agreed to acquire TIF for $135 per share cash. The stock is currently at ~$134.Note: Lone Pine Capital had a 5.5% ownership stake in Tiffany & Company.Activision Blizzard (ATVI): ATVI was a 3.50% of the portfolio stake established in Q2 2019 at prices between $42 and $49.50 and the stock currently trades at $60.59. Last quarter saw a ~9% stake increase while this quarter saw the position disposed at prices between $52 and $59.50.Note: ATVI had a recent round-trip: a fairly large 4.94% ATVI position was purchased in Q2 2016 at prices between $33 and $39 and built over the next three quarters at prices between $35.50 and $50. The entire stake was disposed in Q1 2019 at prices between $40 and $51.World Wrestling Entertainment (WWE): A 1.24% WWE stake was built in Q2 2019 at prices between $71 and $99 and it is now at $46.36. Last quarter had seen a ~10% stake increase while this quarter saw the position eliminated at prices between $53 and $70.Smartsheet (SMAR) and Twilio Inc. (TWLO): These minutely small positions established last quarter were disposed this quarter.Stake Decreases:Alibaba Group Holdings (BABA): BABA is currently the largest position at ~7% of the portfolio. It was established in Q3 2016 at prices between $78.50 and $110 and increased by ~50% the following quarter at prices between $86.50 and $108. Recent activity follows: Q3 2018 saw a ~50% stake increase at prices between $156 and $198 while next quarter there was a ~36% selling at prices between $131 and $164. Last quarter saw a ~25% stake increase at prices between $154 and $183. The stock is currently at $211. There was a ~14% trimming this quarter.UnitedHealth Group (UNH): The large (top three) 6.61% 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 stock is now at ~$273. There was a ~27% reduction in Q3 2018 at prices between $247 and $270 while next quarter there was ~19% increase at prices between $233 and $286. Last quarter saw another ~20% stake increase at prices between $215 and $267. There was marginal trimming this quarter.Amazon.com (AMZN): AMZN is a large (top three) ~5% of the portfolio stake. It was established in Q4 2017 at prices between $957 and $1196. The next three quarters saw a ~70% selling at prices between $1189 and $1751. Q4 2018 saw the position doubled at prices between $1344 and $2004. The stock is now at ~$1954. H1 2019 had seen a ~37% selling at prices between $1500 and $1922 while last quarter there was a one-third increase at prices between $1725 and $2021. This quarter saw a ~17% selling at prices between $1705 and $1870.Adobe Systems (ADBE): ADBE is a fairly large (top five) position at ~5% of the portfolio. It was first purchased in Q1 2014 and almost doubled the following quarter at prices between $60 and $73. 2015 saw that original stake reduced by two-thirds at prices between $73 and $96. The position has since wavered. Recent activity follows: Q3 2018 saw a ~20% increase at prices between $242 and $275. The stock currently trades at ~$360. Last five quarters have seen a ~50% selling at prices between $209 and $331.Microsoft Corporation (MSFT): MSFT is a 4.24% of the portfolio position. 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 stock is now at ~$173. Last five quarters have seen a ~63% selling at prices between $98 and $159. Lone Pine is harvesting gains.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.Transdigm Group (TDG): The 3.72% TDG position was purchased in Q4 2017 at prices between $256 and $285 and it is now at ~$569. Q2 2018 saw a ~25% increase at prices between $301 and $346. There was a ~20% selling last quarter at prices between $461 and $551. This quarter saw minor trimming.Salesforce.com (CRM): The 3.57% CRM position was increased by ~200% in Q1 2019 at prices between $130 and $167. That was followed with a ~50% stake increase next quarter at prices between $145 and $166. The stock currently trades at ~$177. This quarter saw a ~20% selling at prices between $142 and $165.Autodesk Inc. (ADSK): ADSK is a 3.20% portfolio stake purchased in Q4 2018 at prices between $118 and $156 and it currently trades above that at ~$191. There was a ~10% trimming in Q1 2019 while next quarter saw a ~15% stake increase. There was a ~27% reduction this quarter at prices between $140 and $185.Global Payments (GPN) and Humana Inc. (HUM): These two are medium-sized positions established last quarter. The 3.42% GPN position was established at prices between $154 and $175 and it is now at $192. This quarter saw a ~11% trimming. The 2.86% HUM position was established at prices between $254 and $305 and it is now at ~$345. There was a ~7% trimming this quarter.Domino’s Pizza (DPZ): DPZ is a 2.70% of the portfolio position purchased in Q2 2019 at prices between $245 and $287 and increased by ~75% last quarter at prices between $222 and $282. The stock is now at $348. This quarter saw a ~20% selling at prices between $242 and $297. Lone Pine Capital owns ~4% of the business.Iqvia Holdings (IQV) previously Quintiles IMS: The 2.52% IQV stake was purchased in Q1 2017 at prices between $75 and $82.50 and increased by ~70% the following quarter at prices between $78 and $91. The stock is now at ~$147. There was a ~17% selling in Q3 2018 at prices between $100 and $130. Last three quarters have seen another ~60% selling at prices between $132 and $162.ServiceNow Inc. (NOW): NOW is a 2.31% stake established in Q2 2017 at prices between $84.50 and $118. Q4 2017 saw a ~22% reduction at prices between $113 and $131. There was another one-third reduction next quarter at prices between $132 and $175. The position had since wavered. H1 2019 had seen a ~50% selling at prices between $169 and $289. There was a ~30% stake increase last quarter at prices between $250 and $302 while this quarter saw a ~9% trimming. The stock is now at ~$344.Sea Limited ADR (SE): SE is a small 1.31% portfolio position that saw a ~85% stake increase in Q1 2019 at prices between $10.75 and $24.75. Last quarter saw a ~10% stake increase while this quarter there was similar trimming. The stock is now at ~$48.Stake Increases:Netflix (NFLX) and Equifax (EFX): These two medium-sized positions were established last quarter. NFLX is a large (top five) 4.28% of the portfolio position purchased at prices between $255 and $382 and the stock currently trades at $381. This quarter saw a ~6% stake increase. EFX is a 2.56% of the portfolio stake purchased at prices between $135 and $147 and it currently goes for ~$151. This quarter saw a ~12% stake increase.Shopify Inc. (SHOP): The 3.82% SHOP stake was built in Q2 2019 at prices between $195 and $328 and the stock currently trades at $488. There was a one-third increase this quarter at prices between $286 and $409.MasterCard (MA): The 3.78% MA position was established in Q4 2018 at prices between $175 and $224 and it is now well above that range at ~$307. There was a ~40% selling in Q2 2019 at prices between $236 and $267. This quarter saw the position increased by ~50% at prices between $261 and $301.Facebook Inc. (FB): The 3.73% FB stake was first purchased in Q3 2014 at prices between $66 and $79. The position has wavered. Recent activity follows: H2 2018 had seen a stake doubling at prices between $124 and $218. Last three quarters had seen a ~70% selling at prices between $132 and $205 while this quarter there was a similar increase at prices between $175 and $208. The stock is now at ~$196.Note: FB has seen a previous presence in the portfolio. Around 11M shares were purchased in Q4 2012 at prices between $19 and $29. The stake was disposed in 2013 and early 2014 at much higher prices realizing huge gains.Union Pacific (UNP): The 3.64% UNP stake was purchased in Q1 2019 at prices between $133 and $171 and increased by ~50% next quarter at prices between $164 and $179. It is now at ~$160. Last quarter saw a ~50% selling at prices between $156 and $180 while this quarter saw a similar increase at around the same price range.Note: UNP has seen a previous roundtrip. A 2.70% of the portfolio position was purchased in Q3 2018 at prices between $138 and $165 and eliminated next quarter at prices between $128 and $165.Mercadolibre Inc. (MELI): The MELI position was purchased in Q3 2017 at prices between $233 and $292. The position has wavered. Recent activity follows: Q1 2019 saw a ~50% stake increase at prices between $293 and $518. That was followed with a ~30% selling next quarter at prices between $482 and $641. The stake is now at ~3% of the portfolio and the stock is at $642. Last two quarters have seen a stake doubling at prices between $483 and $690.Square Inc. (SQ): SQ is a 2.92% position built in Q2 2019 at prices between $61 and $77. There was a ~140% stake increase last quarter at prices between $56.75 and $82. It is currently ~$81. This quarter also saw a ~10% stake increase.Coupa Software (COUP) and Atlassian Corp plc (TEAM): These two positions have seen significant buying over the last two quarters. The 1.81% COUP position was purchased over the last three quarters at prices between $90 and $158 and it is now at $159. The 1.54% TEAM stake was built over the last two quarters at prices between $108 and $147 and it is currently at $147.Herbalife (HLF): The small ~1% stake in HLF saw a ~85% stake increase this quarter at prices between $35.50 and $48.50. The stock is currently at $34.31.Uber Technologies (UBER): UBER had an IPO in June 2019. Lone Pine Capital participated in funding rounds prior to the IPO. The ~0.50% position saw a marginal increase this quarter.Kept Steady:Canadian Pacific Railway (CP): The 2.53% CP stake was established in Q2 2018 at prices between $173 and $195 and increased by ~35% next quarter at prices between $178 and $216. Last four quarters had seen a combined ~55% selling at prices between $165 and $242. It currently trades at ~$254.Chewy Inc. (CHWY): CHWY had an IPO in June 2019. Lone Pine Capital participated in funding rounds prior to the IPO. The 0.78% CHWY position saw a ~55% stake increase last quarter at prices between $23 and $34.50. The stock is now at $28.93. They have a ~8.4% ownership stake in Chewy.Medallia Inc. (MDLA): The minutely small 0.12% of the portfolio MDLA position was kept steady this quarter.Note: Regulatory filings since the quarter ended show them owning 14.69M shares (5.3% of business) of L Brands (LB). Last month, L Brands sold a majority stake in Victoria’s secret to Sycamore Partners, a private equity firm.The spreadsheet below highlights changes to Mandel’s 13F stock holdings in Q4 2019:Regulatory filings thru 12/1/2019: 13G – 11/29 – LK – 6.07M shares – 14.5% of business."