"Tracking Stephen Mandel’s Lone Pine Capital Portfolio – Q1 2020 Update"
"Stephen Mandel’s 13F portfolio value decreased ~11% from $18.86B to $16.85B. The number of positions increased from 37 to 38.Lone Pine Capital added Visa and increased Global Payments & Humana while dropping Salesforce.com & Union Pacific.The top three positions are Alibaba Group Holdings, UnitedHealth Group, and Amazon.com. 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 Stephen Mandel’s 13F portfolio on a quarterly basis. It is based on Mandel’s regulatory  filed on 05/15/2020. Please visit our  article for an idea on his investment philosophy and our  for the fund’s moves during Q4 2019.This quarter, Mandel’s 13F portfolio value decreased ~11% from $18.86B to $16.85B. The number of holdings increased from 37 to 38. The top three positions are at ~21% while the top five are at 32% of the 13F assets: Alibaba Group Holdings, UnitedHealth Group, Amazon.com, Microsoft Corp, 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:Visa Inc. (V): V is a 3.18% of the portfolio position purchased this quarter at prices between $136 and $213 and the stock currently trades at ~$196.Barclays VIX Short Term ETN (VXX) Puts, Arconic Inc., and L Brands (LB): The VXX Puts were purchased as the underlying traded between $13 and $70 and it is now at $32.49. Arconic is a ~2% of the portfolio position established at prices between $12 and $34. The 1.80% LB stake was purchased at prices between ~$9 and ~$25 and it is now at $16.80.Note 1: Lone Pine Capital has a ~10% ownership stake in L Brands.Note 2: The spinoff of Arconic (ARNC) and name change to Howmet Aerospace (HWM) was completed in early April. Shareholders received 1 share of Arconic for every 4 shares held.Hilton Worldwide (HLT), Ceridian HCM Holding (CDAY), Live Nation Entertainment (LYV), Cadence Design System (CDNS), and Anaplan Inc. (PLAN): These small (less than ~1% of the portfolio each) new stakes were established during the quarter.Stake Disposals:Domino’s Pizza (DPZ): DPZ was a 2.70% of the portfolio position purchased in Q2 2019 at prices between $245 and $287 and increased by ~75% next quarter at prices between $222 and $282. Last quarter saw a ~20% selling at prices between $242 and $297. That was followed with the disposal this quarter at prices between $271 and $373. The stock is now at ~$385.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. There was a ~17% selling in Q3 2018 at prices between $100 and $130. Last three quarters had seen another ~60% selling at prices between $132 and $162. The elimination this quarter was at prices between $84 and $166. The stock is now at ~$152.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. Last quarter saw a ~20% selling at prices between $142 and $165. This quarter saw the remaining position sold at prices between $124 and $193. The stock currently trades at ~$174.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. Q3 2019 saw a ~50% selling at prices between $156 and $180 while last quarter saw a similar increase at around the same price range. The position was sold this quarter at prices between $114 and $187. It is now at ~$171.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 stake had 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. Last two quarters had seen a stake doubling at prices between $483 and $690 while this quarter saw the position eliminated at prices between ~$450 and ~$745. The stock is now at ~$860.Herbalife (HLF): The small ~1% stake in HLF saw a ~85% stake increase last quarter at prices between $35.50 and $48.50. This quarter saw the position disposed at prices between $23.34 and $47.44. The stock is currently at $43.34.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 last quarter. This quarter saw the stake sold at prices between ~$15 and ~$41. The stock currently trades at $35.81.Altria Group (MO), CSX Corp (CSX), XP Inc. (XP), DexCom Inc. (DXCM), and Illumina Inc. (ILMN): These small (less than ~1% of the portfolio each) positions were sold this quarter.Stake Decreases:Netflix (NFLX) and Equifax (EFX): These two medium-sized positions were established in Q3 2019. NFLX is a large (top five) 5.37% of the portfolio position purchased at prices between $255 and $382 and the stock currently trades at $427. Last quarter saw a ~6% stake increase while this quarter there was a ~3% trimming. EFX is a 2.25% of the portfolio stake purchased at prices between $135 and $147 and it currently goes for ~$167. Last quarter saw a ~12% stake increase while this quarter there was a ~8% trimming.Shopify Inc. (SHOP): The 4.13% SHOP stake was built in Q2 2019 at prices between $195 and $328 and the stock currently trades at $780. There was a one-third increase last quarter at prices between $286 and $409. This quarter saw a ~8% trimming.MasterCard (MA): The 3.31% MA position was established in Q4 2018 at prices between $175 and $224 and it is now well above that range at ~$304. There was a ~40% selling in Q2 2019 at prices between $236 and $267. Last quarter saw the position increased by ~50% at prices between $261 and $301. This quarter saw a ~3% trimming.Adobe Systems (ADBE): ADBE is a fairly large 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 ~$390. Last six quarters have seen a ~50% selling at prices between ~$210 and ~$380.ServiceNow Inc. (NOW): NOW is a 2.33% 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 next quarter at prices between $250 and $302 while last quarter saw a ~9% trimming. This quarter also saw a ~11% trimming. The stock is now at ~$393.Square Inc. (SQ): SQ is a ~2% 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. This quarter saw a ~25% reduction at prices between $38 and $86. It is currently at ~$88.Coupa Software (COUP) and Atlassian Corp plc (TEAM): These two positions had seen significant buying over the last few quarters. The 1.81% COUP position was purchased over the last three quarters at prices between $90 and $158 and it is now at ~$230. This quarter saw a ~9% trimming. The 1.54% TEAM stake was built over the last two quarters at prices between $108 and $147 and it is currently at ~$184. This quarter saw a ~50% selling at prices between ~$120 and ~$155.Transdigm Group (TDG): The 1.47% TDG position was purchased in Q4 2017 at prices between $256 and $285 and it is now at ~$432. Q2 2018 saw a ~25% increase at prices between $301 and $346. There was a ~20% selling in Q3 2019 at prices between $461 and $551. That was followed with a ~40% reduction this quarter at prices between $246 and $656.Chewy Inc. (CHWY): CHWY had an IPO in June 2019. Lone Pine Capital participated in funding rounds prior to the IPO. The position saw a ~55% stake increase in Q3 2019 at prices between $23 and $34.50. The stock is now at $49.42. This quarter saw the position reduced by ~75% to a minutely small 0.29% portfolio stake at prices between $22.70 and $38.Sea Limited ADR (SE): SE was a 1.31% portfolio position as of last quarter. The original stake saw a ~85% stake increase in Q1 2019 at prices between $10.75 and $24.75. This quarter saw the position almost sold out at prices between $38 and $53. The stock is now at ~$87.Stake Increases:Alibaba Group Holdings (BABA): BABA is currently the largest position at 7.31% 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 2019 saw a ~25% stake increase at prices between $154 and $183. The stock is currently at ~$214. There was a ~14% trimming last quarter while this quarter saw a minor increase.UnitedHealth Group (UNH): The large (top three) 6.83% 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 ~$306. 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. Q3 2019 saw another ~20% stake increase at prices between $215 and $267. This quarter also saw a ~9% further increase.Amazon.com (AMZN): AMZN is a large (top three) 6.74% 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 ~$2472. H1 2019 had seen a ~37% selling at prices between $1500 and $1922 while next quarter there was a one-third increase at prices between $1725 and $2021. Last quarter saw a ~17% selling at prices while this quarter there was a similar increase.Microsoft Corporation (MSFT): MSFT is a 5.54% 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 ~$185. Last five quarters had seen a ~63% selling at prices between $98 and $159 while this quarter saw a ~17% stake increase at prices between ~$135 and ~$189.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.Global Payments (GPN) and Humana Inc. (HUM): These two medium-sized positions were established in Q3 2019. The 4.24% GPN position was established at prices between $154 and $175 and it is now at $181. This quarter saw a ~53% stake increase at prices between $116 and $209. The ~4% HUM position was established at prices between $254 and $305 and it is now at ~$405. This quarter saw a ~47% stake increase at prices between $214 and $380.Autodesk Inc. (ADSK): ADSK is a 3.73% portfolio stake purchased in Q4 2018 at prices between $118 and $156 and it currently trades above that at ~$219. There was a ~10% trimming in Q1 2019 while next quarter saw a ~15% stake increase. Last quarter saw a ~27% reduction at prices between $140 and $185 while this quarter there was a similar increase at prices between $136 and $211.Facebook Inc. (FB): The 3.50% 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. Q1 to Q3 2019 had seen a ~70% selling at prices between $132 and $205 while last quarter there was a similar increase at prices between $175 and $208. The stock is now at ~$233. This quarter also saw a minor ~3% increase.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.PayPal Holdings (PYPL): PYPL is a ~3% of the portfolio stake purchased last quarter at prices between $96.50 and $110 and the stock currently trades at ~$158. This quarter saw a ~55% stake increase at prices between $85 and $124.Canadian Pacific Railway (CP): The ~3% 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. The four quarters thru Q3 2019 had seen a combined ~55% selling at prices between $165 and $242. It currently trades at ~$253. There was a ~23% stake increase this quarter at prices between $181 and $274.Carvana Company (CVNA), Hubspot Inc. (HUBS), IAC Interactive (IACI), Luckin Coffee (LK), Match Group (MTCH), Medallia Inc. (MDLA), and Under Armour (UA): These are small (less than ~2% of the portfolio each) positions that were increased during the quarter.Note 1: Regulatory filings since the quarter ended show them no longer owning shares of Luckin Coffee. This is compared to a ~24% ownership stake as of Q1 2020. The shares dropped sharply following a fraud finding in early April.Note 2: Lone Pine has a ~9% stake in Carvana and a ~6% stake in Under Armour.Kept Steady:None.The spreadsheet below highlights changes to Mandel’s 13F stock holdings in Q1 2020:Regulatory filings thru 2/21/2020: 13G – 2/18 -  LB – 14.69M shares – 5.3% of business,  MTCH – 5.80M shares – 8.2% of business. 13G/As – 2/14 – CHWY - 5.07M shares – 8.4% of business, DPZ – 1.73M shares – 4.2% of business, WWE – 0, WYNN – 0, TIF – 0, TRU – 0, 13G/A – 1/13, 11/29 – LK – 10.35M shares – 10.6% of business, 6.07M shares – 14.5% of business, 13G – 1/13 – UA – 12.73M shares – 6.7% of business,Note: Regarding Match Group, there should be more clarification: a) There are 3M shares reported in the 13F while regulatory filings from last month indicate the stake has increased to 5.8M shares, and b) 5.8M shares is ~8% of the traded shares. The float was ~71M shares as of 12/16/2019. Match is a subsidiary of IAC Interactive and including their holdings there are ~283M shares. So, net ownership interest in the company is only around 2%. I will add a Note in the next round."