"Tracking Stephen Mandel’s Lone Pine Capital Portfolio – Q3 2019 Update"
"Stephen Mandel’s 13F portfolio value increased ~6% from $16.08B to ~$17B. The number of positions increased from 31 to 37.Lone Pine Capital added Netflix, Global Payments, Equifax, and Humana while dropping Wynn Resorts.The top three positions are Alibaba Group Holdings, Amazon.com, and UnitedHealth Group. 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 11/14/2019. Please visit our  article for an idea on his investment philosophy and our  for the fund’s moves during Q2 2019.This quarter, Mandel’s 13F portfolio value increased ~6% from $16.08B to $17B. The number of holdings increased from 31 to 37. The top three positions are at ~19% while the top five are at 30% of the 13F assets: Alibaba Group Holdings, Amazon.com, UnitedHealth Group, Adobe Systems, and Microsoft.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 in a previously announced (September 2017) move. He is still a managing director at the firm.New Stakes:Netflix (NFLX), Global Payments (GPN), Equifax (EFX), and Humana Inc. (HUM): These are medium-sized new positions established this quarter. NFLX is a 3.71% of the portfolio position purchased at prices between $255 and $382 and the stock currently trades at $310. The 3.42% GPN position was established at prices between $154 and $175 and it is now at $178. EFX is a 2.54% of the portfolio stake purchased at prices between $135 and $147 and it currently goes for $138. The 2.39% HUM position was established at prices between $254 and $305 and it is now at $338.Herbalife (HLF), Medallia Inc. (MDLA), Smartsheet (SMAR), and Twilio Inc. (TWLO): These are minutely small positions established during the quarter.Stake Disposals:Wynn Resorts (WYNN): WYNN is a ~4% position purchased in Q3 2017 at prices between $125 and $149 and reduced by ~50% the following quarter at prices between $140 and $170. The three quarters thru Q4 2018 had seen a ~470% increase at prices between $125 and $201. The position was sold this quarter at prices between $102 and $141. The stock is now at ~$119.StoneCo Ltd. (STNE): The minutely small 0.50% portfolio stake in STNE established in Q4 2018 was reduced by one-third in Q1 2019. Last quarter had seen a ~22% stake increase but this quarter saw the stake disposed.Stake Decreases:Adobe Systems (ADBE): ADBE is a fairly large (top five) position at 5.78% 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 follow: Q3 2018 saw a ~20% increase at prices between $242 and $275. The stock currently trades at ~$303. Last three quarters had seen a ~30% selling at prices between $205 and $302. There was a ~5% further trimming this quarter.Microsoft Corporation (MSFT): MSFT is currently the fifth-largest 13F position at 4.96% 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 stock is now at ~$150. Last four quarters have seen a ~40% selling at prices between $98 and $141. 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 ~4% TDG position was purchased in Q4 2017 at prices between $256 and $285 and it is now at ~$557. Q2 2018 saw a ~25% increase at prices between $301 and $346. There was a ~20% selling this quarter at prices between $461 and $551.Tiffany & Co (TIF): The ~3.5% TIF position was established in Q4 2018 at prices between $74 and $128 and it now goes for ~$134. Last two quarters have seen minor trimming. Earlier this month, LVMH (LVMUY) agreed to acquire TIF for $135 per share cash.Note: Lone Pine Capital has a 5.5% ownership stake in Tiffany & Company.Iqvia Holdings (IQV) previously Quintiles IMS: The 3.12% 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 ~$144. There was a ~17% selling in Q3 2018 at prices between $100 and $130. Last two quarters have seen a two-thirds reduction at prices between $132 and $162.MasterCard (MA): The 2.57% MA position was established in Q4 2018 at prices between $175 and $224 and it is now well above that range at ~$287. There was a ~40% selling last quarter at prices between $236 and $267. This quarter also saw a ~4% trimming.Shopify Inc. (SHOP): The 2.53% SHOP stake was built last quarter at prices between $195 and $328 and the stock currently trades at $331. This quarter saw minor trimming.Union Pacific (UNP): The 2.45% UNP stake was purchased in Q1 2019 at prices between $133 and $171 and increased by ~50% last quarter at prices between $164 and $179. It is now at ~$173. This quarter saw a ~50% selling at prices between $156 and $180.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.S&P Global Inc. (SPGI): SPGI is a medium-sized 2.49% of the portfolio position established in Q1 2019 at prices between $164 and $210. Last quarter saw a ~38% reduction at prices between $209 and $232. The stock currently trades at $262. There was a ~11% selling this quarter.Canadian Pacific Railway (CP): The 2.45% 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. It currently trades at ~$236. Last four quarters have seen a combined ~55% selling at prices between $165 and $242.Booking Holdings (BKNG): BKNG is a 2.44% of the portfolio stake purchased in Q4 2018 at prices between $1617 and $1998 and the stock currently trades at $1884. There was a one-third selling this quarter at prices between $1787 and $2077.Note: 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.Facebook Inc. (FB): The 2% FB stake was first purchased in Q3 2014 at prices between $66 and $79. The position has wavered. Recent activity follow: H2 2018 had seen a stake doubling at prices between $124 and $218. Last three quarters have seen a ~70% selling at prices between $132 and $205. The stock is now at ~$200. Lone Pine is harvesting gains.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.D R Horton Inc. (DHI): DHI is a 1% of the portfolio position purchased in Q1 2019 at prices between $35 and $42.50.  Last quarter saw a ~90% stake increase at prices between $41.50 and $46.75. The stock currently trades at $54.85. There was a ~75% selling this quarter at prices between $43.50 and $53.Stake Increases:Alibaba Group Holdings (BABA): BABA is a large (top three) 7.17% of the portfolio stake 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 follow: 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. This quarter saw a ~25% stake increase at prices between $154 and $183. The stock is currently at $196.Amazon.com (AMZN): AMZN is a large (top three) 6.35% of the portfolio stake. It was established in Q4 2017 at prices between $957 and $1196. There was a ~25% selling in Q1 2018 at prices between $1189 and $1598 and that was followed with a ~40% reduction over the next two quarters at prices between $1372 and $1751. Q4 2018 saw the position doubled at prices between $1344 and $2004. The stock is now at ~$1782. Last two quarters had seen a ~37% selling at prices between $1500 and $1922 while this quarter there was a one-third increase at prices between $1725 and $2021.UnitedHealth Group (UNH): The large (top five) 5.79% 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 ~$280. 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. This quarter saw another ~20% stake increase at prices between $215 and $267.Salesforce.com (CRM): The 4.46% CRM position was increased by ~200% in Q1 2019 at prices between $130 and $167. That was followed with a ~50% stake increase last quarter at prices between $145 and $166. The stock currently trades at ~$161.Autodesk Inc. (ADSK): ADSK is a ~4% portfolio stake purchased in Q4 2018 at prices between $118 and $156 and it currently trades above that at ~$176. There was a ~10% trimming in Q1 2019 while last quarter saw a ~15% stake increase.Activision Blizzard (ATVI): ATVI is a 3.50% of the portfolio stake established last quarter at prices between $42 and $49.50 and the stock currently trades above that range at $54.23. This quarter saw a ~9% stake increase.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 last quarter at prices between $40 and $51.Domino’s Pizza (DPZ): DPZ is a ~3% of the portfolio position purchased last quarter at prices between $245 and $287 and increased by ~75% this quarter at prices between $222 and $282. The stock is now at $294. Lone Pine Capital owns ~9% of the business.ServiceNow Inc. (NOW): NOW is a 2.54% 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. Last two quarters had seen a ~50% selling at prices between $169 and $289. The stock is now at ~$277. There was a ~30% stake increase this quarter at prices between $250 and $302.Mercadolibre Inc. (MELI): The MELI position was purchased in Q3 2017 at prices between $233 and $292. The position has wavered. Recent activity follow: Q1 2019 saw a ~50% stake increase at prices between $293 and $518. That was followed with a ~30% selling last quarter at prices between $482 and $641. The stake is now at 1.88% of the portfolio and the stock is at $580. This quarter saw a ~22% stake increase at prices between $537 and $690.Sea Limited ADR (SE): SE is a small 1.25% portfolio position that saw a ~85% stake increase in Q1 2019 at prices between $10.75 and $24.75. Last quarter saw a ~15% trimming while this quarter there was a similar increase. It is now at $36.57.Square Inc. (SQ), and World Wrestling Entertainment (WWE): These two positions were first purchased in Q1 2019. SQ is a 2.92% position built last quarter at prices between $61 and $77. There was a ~140% stake increase this quarter at prices between $56.75 and $82. It is currently $66.88. The 1.24% WWE stake was built last quarter at prices between $71 and $99 and it is now at $61.52. This quarter saw a ~10% stake increase.Chewy Inc. (CHWY), Coupa Software (COUP), and Atlassian Corp plc (TEAM): These three positions saw significant buying this quarter. CHWY had an IPO in June. Lone Pine Capital participated in funding rounds prior to the IPO. The 0.73% CHWY position saw a ~55% stake increase this quarter at prices between $23 and $34.50. The stock is now at $23.83. They have a ~9% ownership stake in Chewy. The ~1% COUP position was purchased over the last two quarters at prices between $90 and $153 and it is now at $149. The 1.54% TEAM stake was built this quarter at prices between $122 and $147 and it is currently at $121.Kept Steady:Uber Technologies (UBER): UBER had an IPO in June. Lone Pine Capital participated in funding rounds prior to the IPO. The 0.50% position was kept steady this quarter.Note: Regulatory filings since the quarter ended show them owning 6.07M shares (14.5% of business) of Luckin Coffee (LK). They had an IPO in May. Shares started trading at ~$20 per share and currently goes for ~$30.The spreadsheet below highlights changes to Mandel’s 13F stock holdings in Q3 2019:Regulatory filings thru 9/1/2019: 13G 8/30 – DPZ – 2.07M shares – 5% of business, 13G 6/24 – CHWY - ~3.3M shares – 6.1% of business."