"Tracking Stephen Mandel’s Lone Pine Capital Portfolio – Q3 2017 Update"
"Stephen Mandel’s 13F portfolio value increased from $19.67B to $20.57B. The number of positions decreased from 33 to 30.Lone Pine Capital increased Comcast and UnitedHealth while decreasing Alibaba and dropping O’Reilly Automotive.The top three individual stocks are Charter Communications, Alibaba Group Holdings, and Constellation Brands and they add up to ~22% of the portfolio.This article is part of a series that provides an ongoing analysis of the changes made to Stephen Mandel’s US stock portfolio on a quarterly basis. It is based on Mandel’s regulatory  filed on 11/14/2017. Please visit our  article for an idea on his investment philosophy and our  for the fund’s moves during Q2 2017.This quarter, Mandel’s US long portfolio value increased ~5% from $19.67B to $20.57B. The number of holdings decreased from 33 to 30. The top three individual stock positions are at 21.97% while the top five are at 34.29% of the US long assets: Charter Communications, Alibaba Group Holdings, Constellation Brands, Activision Blizzard, and Comcast Corp.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 .Stake Disposals:O’Reilly Automotive (ORLY): ORLY was a 3.16% portfolio position purchased last quarter at prices between $216 and $270 and disposed this quarter at prices between $173 and $220. The stock currently trades at $219.CSX Corporation (CSX): The 2.86% CSX stake was purchased in Q1 2017 at prices between $36 and $50. Last quarter saw a ~28% reduction at prices between $46 and $55. The elimination this quarter was at prices between $48 and $55. The stock is now at $51.01.Symantec Corporation (SYMC): The ~3% SYMC position was purchased in Q4 2016 at prices between $23.50 and $25.50 and doubled the following quarter at prices between $24 and $31. Last quarter saw a ~20% selling at prices between $28 and $33 and the remaining position was sold this quarter at prices between $27.50 and $34. The stock currently trades at $28.43.Ulta Beauty (ULTA): ULTA was a 2.10% stake first purchased in 2012 at much lower prices. Q1 2016 saw a ~40% increase at prices between $153 and $173. There was a ~12% reduction in Q3 2016 and that was followed with another ~40% selling the following quarter at prices between $228 and $266. Q1 2017 also saw another ~15% selling at prices between $257 and $289. The stock is now at $212. There was a ~6% trimming last quarter and the disposal this quarter was at prices between $208 and $287. Mandel realized gains.Cheniere Energy (LNG): LNG was a 1.28% of the portfolio position first purchased in H2 2014 at prices between $65 and $84. There was a ~55% increase in Q3 2015 at prices between $47.50 and $71. Q3 2016 saw some selling: ~17% disposed at prices between $37 and $46 and that was followed with a ~50% selling the following quarter at prices between $35.50 and $43.50. The remaining position was sold this quarter at prices between $41 and $49. The stock currently trades at $47.89.Albemarle Corp. (ALB), Alltice USA (ATUS), Arista Networks (ANET), Liberty Media Formula One (FWONK), and Snap Inc. (SNAP): These very small (less than ~1.5% of the portfolio each) stakes were disposed during the quarter.New Stakes:Priceline Group (PCLN): PCLN is a 3.63% portfolio position established this quarter at prices between $1790 and $2049 and the stock currently trades below that range at $1759. For investors attempting to follow Mandel, PCLN is a good option to consider for further research.Electronic Arts (EA), PayPal Holdings (PYPL), Mercadolibre Inc. (MELI), and Wynn Resorts (WYNN): These are ~2% of the portfolio stakes purchased this quarter. The 2.43% EA position was purchased at prices between $105 and $122 and it is now near the low end of that range at $107. PYPL is a 2.09% position established at prices between $53 and $65 and it currently goes for $77.57. The 2.05% MELI position was at prices between $233 and $292 and the stock is now at $266. WYNN is a 1.94% position purchased at prices between $125 and $149 and it is now well above that range at $159.Vantiv Inc. (VNTV) and Anheuser Busch Inbev (BUD): These are very small (less than ~1% of the portfolio each) positions established during the quarter.Stake Decreases:Alibaba Group Holdings (BABA): The 7.40% BABA stake is currently the second-largest position in 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. There was another ~30% increase in Q1 2017 at prices between $88.50 and $110. Last quarter also saw a ~18% increase at prices between $107 and $144. There was a ~25% reduction this quarter at prices between $141 and $180. The stock is now at $190.Activision Blizzard (ATVI): The top-five 6.22% 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 stock is now at $65.14. There was a ~22% reduction over the last two quarters at prices between $48.50 and $66.Note: ATVI had a previous round-trip: a ~2% position was established in H2 2015 and disposed in Q1 2016.Broadcom Ltd (AVGO): The large 6% AVGO stake was purchased in Q3 2016 at prices between $150 and $178 and increased by just over one-third the following quarter at prices between $163 and $182. There was a ~50% stake increase in Q1 2017 at prices between $174 and $227. The stock currently trades well above those ranges at $275. There was a ~4% trimming this quarter.Facebook Inc. (FB): The 4.18% FB stake was purchased in Q3 2014 at prices between $66 and $79. Q1 2015 saw the original stake reduced by ~40% at prices between $74 and $84. There was a ~45% selling in Q3 2016 at prices between $114 and $131 and that was followed with a ~14% trimming in Q1 2017 at prices between $117 and $143. Last quarter saw a ~20% stake increase at prices between $139 and $155 while this quarter there was a similar reduction at prices between $148 and $174. The stock currently trades at ~$181.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 of in 2013 and early 2014 at much higher prices realizing huge gains.MasterCard Inc. (MA): MA is a ~3% of the portfolio stake established last quarter at prices between $111 and $126 and it is now at $151. There was a ~3% trimming this quarter.Note: MA has seen a previous roundtrip: a ~2% stake was established in Q3 2013 at prices between $59 and $69 and increased by ~30% the following quarter at prices between $67 and $83. The last three quarters of 2014 saw a huge ~200% increase at prices between $69 and $89. 2015 saw a combined ~70% reduction at prices between $82 and $102. Q1 2016 saw a ~18% further reduction at prices between $80.50 and $97.50 and the disposal in Q3 2016 was at prices between $87 and $102.T-Mobile US (TMUS): TMUS is a 1.37% position established in Q1 2017 at prices between $56.50 and $65 and increased by ~20% last quarter at prices between $60 and $68. There was a ~36% reduction this quarter at prices between $59.50 and $65.50. It is now at $61.35.FleetCor Technologies (FLT): The FLT stake is from 2013 and the cost-basis is much lower compared to the current price. Last year had seen a roughly one-third reduction at prices between $117 and $174 while last quarter saw a ~46% increase at prices between $131 and $151. There was another about turn this quarter: ~90% reduction at prices between $139 and $155. It currently trades at ~$179. Mandel realized gains.Barclays Bank plc (BCS): The minutely small 0.05% stake saw a ~75% reduction this quarter.Stake Increases:Charter Communications (CHTR) & Calls: The 7.71% CHTR position is the largest stake in the portfolio. It was first purchased in Q3 2014 at prices between $152 and $164. Q2 2015 saw a whopping ~150% increase at prices between $168 and $193. Q4 2015 saw an about turn: ~50% reduction at prices between $175 and $193. The stock is currently at $334. Q1 2017 saw a ~20% increase at prices between $286 and $333 while last quarter saw a similar reduction at prices between $313 and $353.Constellation Brands (STZ): STZ is a top-three ~7% stake established in Q3 2015 at prices between $115 and $131. The following three quarters had seen a combined ~40% increase at prices between $125 and $164. Q3 2016 saw an about turn: ~17% sold at prices between $161 and $168. The next two quarters saw a one-third increase at prices between $145 and $171. The stock is now at ~$221. There was a ~9% trimming last quarter while this quarter saw a similar increase.Comcast Corporation (CMCSA): CMCSA is a ~4% portfolio position established in Q1 2017 at prices between $34.50 and $38.50 and increased by ~50% last quarter at prices between $37 and $42. There was another ~60% increase this quarter at prices between $37 and $42. The stock is currently at $36.41. For investors attempting to follow Mandel, CMCSA is a good option to consider for further research.UnitedHealth Group (UNH): The ~4% UNH stake was established last quarter at prices between $164 and $187 and increased by ~160% this quarter at prices between $185 and $200. The stock is now above those ranges at $211.Microsoft Corporation (MSFT): MSFT is a ~4% portfolio stake established last quarter at prices between $65 and $72.50 and increased by ~17% this quarter. The stock is now at $83.11.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.Expedia Inc. (EXPE): EXPE is a 3.26% position established in Q3 2016 at prices between $106 and $119 and reduced by ~40% the following quarter at prices between $113 and $132. There was another ~50% selling in Q1 2017 at prices between $112 and $131. There was an about turn last quarter: stake doubled at prices between $125 and $154. The stock is now at $127. There was a marginal increase this quarter.Intercontinental Exchange (ICE): ICE is a ~3% of the portfolio stake purchased last quarter at prices between $58 and $66 and increased by ~38% this quarter at prices between $64 and $69. The stock is currently at $67.66.Note: Intercontinental Exchange is back in the portfolio after a quarter’s gap.TransUnion (TRU), ServiceNow Inc. (NOW), and Salesforce.com (CRM): These positions established last quarter saw substantial increases this quarter. The 2.84% TRU position was purchased at prices between $38 and $44.50 and increased by ~40% this quarter at prices between $41.50 and $49.50. The stock is now at $55.22. NOW is a ~3% stake established at prices between $84.50 and $110 and increased by roughly two-thirds this quarter at prices between $104 and $118. It now goes for $128. The 2.85% CRM position was purchased at prices between $82 and $91 and increased by ~140% this quarter at prices between $86 and $98. The stock currently trades at $107.Grupo Televisa (TV): The ~2.5% TV position was established in Q3 2016 at prices between $24 and $28. There was a ~36% increase in Q1 2017 at prices between $20 and $27. The stock is now at $18.59. There was a ~11% increase last quarter and a marginal further increase this quarter.Note: Regulatory Filings since the quarter ended show them owning 5.5M shares (6.4% of business). This is compared to 20.8M shares in the 13F report.Advance Auto Parts (AAP): The very small ~1% AAP position established last quarter saw a ~15% increase this quarter.Kept Steady:Iqvia Holdings (IQV) previously Quintiles IMS: The 4.65% Q stake was purchased in Q1 2017 at prices between $75 and $82.50 and increased by ~70% last quarter at prices between $78 and $91. The stock is now at $104.Adobe Systems (ADBE): ADBE is a 2.85% of the US long portfolio position. 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. Q1 2016 saw an about turn: ~26% increase at prices between $74 and $94. The stock currently trades at ~$183. There was a ~20% reduction last quarter at prices between $129 and $145.Equinix Inc. (EQIX): EQIX is a 2.76% portfolio stake. It is a long-term position first purchased in 2010. Around 4M shares were acquired at the time at a cost-basis in the low-80s. The position size has wavered since although by Q4 2014 the stake was back at ~4M shares. Q1 2015 saw a ~30% reduction at prices between $217 and $239. Q4 2015 saw another ~20% reduction at prices between $265 and $305. There was a ~25% further selling in Q1 2017 at prices between $359 and $400. The stock is now at ~$472. There was a ~11% trimming last quarter. Mandel is periodically harvesting huge long-term gains.The spreadsheet below highlights changes to Mandel’s US stock holdings in Q3 2017:Regulatory Filings thru 8/22/2017: 13G – 7/31/2017 – TRU – 9.3M shares – 5.1% of business."