Coinbase, DoorDash and DocuSign stock
According to a regulatory filing, Coleman added a new Coinbase holding worth $665 million at the end of June. During its market debut in April, the cryptocurrency exchange was briefly valued at up to $100 billion, marking a watershed moment in the cryptocurrency industry. During bitcoin’s turbulent ride, the stock has lost more than 40% of its value from its all-time high.
According to the filing, the manager increased his relatively new DoorDash stake by 88 percent to $1.946 billion, while its DocuSign stake increased by 40 percent to more than $2 billion, both of which were among Tiger Global’s ten largest stakes.
Meanwhile, the hedge fund manager reduced his long-held top Alibaba and Amazon bets.
Tiger Global reduced its stake in Alibaba by 6% to $957 million at the end of June, while its stake in Amazon was reduced by a similar amount to around $1.95 billion. According to InsiderScore data, the hedge fund has held Alibaba since 2014 and Amazon since 2010.
Coleman is one of the so-called Tiger Cubs, the protégés of legendary investor Julian Robertson. After training Coleman, Robertson closed his Tiger Management fund in 2000 and gave him $25 million to start his own fund. Coleman’s hedge fund now manages more than $60 billion in assets.
China wagers
Coleman has a long history of investing in China. Many of these stocks have taken a significant hit as a result of the country’s recent unexpected regulatory crackdowns.
With a value of more than $4.1 billion, the manager’s largest stake remained Chinese e-commerce giant JD.com. Coleman purchased the name for the first time in 2014. The stock has dropped more than 16 percent in the third quarter as a result of the increased scrutiny.
The ride-hailing app became one of the most prominent victims of the Chinese government’s crackdown. Since its June IPO, the stock has dropped more than 40% after Beijing announced a cybersecurity investigation and suspended new user registrations.
According to Bloomberg News, Tiger Global first backed Didi in 2014 by participating in a private funding round, investing $100 million in the company prior to its IPO.
Uber and Peloton
Uber’s stock dropped 8% in the second quarter.
In addition, the billionaire investor now has a $20 million stake in Peloton competitor Beachbody, which went public in June via a special purpose acquisition company. The stock, which trades under the ticker BODY, has dropped nearly 30% since its Nasdaq debut.
Shaquille O’Neal, the NBA superstar, was an advisor to Forest Road Acquisition Corp, the blank check company that formed a three-way merger with BeachBody.
In the second quarter, Tepper also made a new bet on homebuilding behemoth PulteGroup. The position is valued at approximately $82 million. Between April and the end of June, PulteGroup’s stock rose about 4%.
Following the release of the Federal Reserve’s so-called dot plot, which revealed the central bank’s plan to accelerate its interest rate hike, Tepper said that the Fed is doing a good job, demonstrating that policymakers are not sleeping at the wheel.
Tepper believes the Fed will not begin tapering its quantitative easing bond-buying program until later this year, telling that if it does, it will be a good sign that the economy is in good shape.
At the end of the second quarter, Appaloosa Management had $4.5 billion in long equity positions.
The following are Appaloosa Management’s top ten holdings as of June 30.
Appaloosa’s top holdings remain in technology companies such as Micron Technology, Amazon, Facebook, and Alphabet. Tepper has significant holdings in T-Mobile and Alibaba, as well as energy companies such as Occidental Petroleum, PG&E, SPDR Energy, and Energy Transfer.
According to SEC filings, Tepper did not add to any of his top holdings in the second quarter. Indeed, the hedge fund reduced its stakes in several of its top holdings, including Micron, Amazon, T-Mobile, Occidental Petroleum, PG&E, and Energy Transfer.
Appaloosa has sold its stakes in iQIYI, Salesforce, Disney, PayPal, and Baidu.
MSG Sports stock
Morgan Stanley analyst Benjamin Swinburne said in a note to clients on Tuesday that the market is significantly undervaluing the stock and reiterated his overweight rating, citing Forbes franchise value estimates and recent sales of major sports teams. MSG Sports owns the NBA’s Knicks and the NHL’s Rangers, two marquee franchises in each league.
“We estimate that the Knicks value alone translates to $181 per share for MSGS, which is 17% higher than the current share price. To put it another way, MSGS shares “offer the Knicks at a 15% discount to private market value and the Rangers for free,” according to the note.
The firm’s price target is $228 per share, which is 47% lower than the stock’s closing price on Monday.
Morgan Stanley believes that part of the reason for the discount to the private market is that the company is majority owned by the Dolan family, raising the possibility of a merger or acquisition that the market will not like.
The family recently oversaw the consolidation of two other MSG entities into the newly formed Madison Square Garden Entertainment, which includes regional sports television networks as well as the arena itself.
“We do not believe MSG intends to reintroduce MSG Sports into MSG Entertainment, but the market’s concern appears to have widened the discount,” the note said.
Morgan Stanley is less optimistic about MSG Entertainment, and Swinburne initiated coverage with an underweight rating on the stock on Tuesday.
