Invest like Chase Coleman: Alibaba Group Holding Ltd (BABA), Etsy Inc (ETSY), Zillow Group Inc (Z)
Chase Coleman is one of most successful among young hedge fund managers, with his portfolio valued at $9.78B. Coleman’s hedge fund, Tiger Global Management LLC, has earned an average annualized return of +9.68%. Here are some of the moves that have contributed to this profit:
In the most recent quarter, Coleman significantly reduced his holdings in Alibaba Group Holding Ltd (NYSE:BABA). Year-to-date, he has significantly reduced his holdings in the stock by 98.6%. The Chinese e-commerce company now makes up 0.06% of Coleman’s total holdings with a value of $5.41 million. Alibaba has been drawing negative media attention due to the slowing Chinese economy. Last week, the stock had hit an all-time low of $58. Based on TipRanks’ statistics, 21 analysts have weighed in on the company in the last three months. Of these analysts, 11 have rated it as a Buy, 2 have rated it as a Hold, while none have rated the stock as a Sell. The average 12-month price target for Alibaba is $92.07, marking a 59.24% upside from current levels.
Now in the bullish camp, Coleman added Etsy Inc (NASDAQ:ETSY), a peer-to-peer e-commerce website, to his portfolio in the most recent quarter with an investment of $138.2 million. Etsy investors enjoy its loyal user base and low fees, as compared to competitors like Amazon’s Handmade. Recently, the company indicated in its blog that it is expanding its third-party manufacturing efforts. Three analysts on TipRanks have weighed in on Etsy in the last three months with varying views. One analyst is bullish, one is bearish, and one is staying on the sidelines. The average 12-month price target between these three analysts is $17, marking a 21% potential upside from current levels.
Coleman has made no changes to his holdings in Zillow Group Inc (NASDAQ:Z), an online real estate database. However, the stock still remains a significant 1.01% of his portfolio. In the past month Zillow has completed its integration of Trulia, an online real estate competitor it acquired in February. Out of the nine analysts who have polled by TipRanks who have rated Zillow in the last three months, four are bullish on the online real estate company, four are staying on the sidelines, and one is bearish.
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