How pandemic is influencing e-commerce stock
Lone Pine Capital’s Stephen Mandel, Viking Global Investors’ Andreas Halvorsen, Maverick Capital’s Lee Ainslie, and Tiger Global Management’s Chase Coleman are among his protégés who have gone on to launch their own funds.
Around the year 2000, Robertson closed Tiger Management to outside investors. While Robertson is no longer active, his firm continues to invest in various stocks and incubate new hedge funds.
Here’s a look at the top holdings of these “Tiger Cubs”.
According to regulatory filings compiled by InsiderScore.com. The total holdings include those from the four hedge funds mentioned above, as well as those from Tiger Management, but they were much smaller bets in comparison to his cubs.′
Tiger Global and Viking both had significant stakes in JD.com. Tiger Global’s Coleman, a long-time China investor, first purchased the name in 2014. The stock has dropped more than 16% in the third quarter due to a Chinese government crackdown.
Maverick preferred South Korean e-commerce giant Coupang, in which it had a $4.6 billion.. In March, the SoftBank-backed start-up debuted on the New York Stock Exchange. Tiger Global has also made an investment in the stock.
Shopify, a Canadian startup that saw a surge in demand during the pandemic, was another e-commerce play favored by “Tiger Cubs.”
DoorDash and Carvana were the other two stocks riding the pandemic wave. Tiger Global increased its relatively new DoorDash stake by 88 percent at the end of June to a value of $1.946 billion, while Lone Pine also heavily invested in the duo.
Cathie Wood’s innovation ETF
“You can have the best macro story in the world and still lose if your micro stories are flawed. I believe the short-sellers are correct in predicting that Cathie Wood and Ark’s weakness at the micro level will catch up with them. But it’s not guaranteed,” Damodaran said in an interview with “TechCheck.”
“We live in a market where everything is driven by momentum. Ark is a fund that is based on momentum. If you ask me, it’s a very dangerous short bet because you could get whiplash,” added the professor, who is known as the “Dean of Valuation” for his company analyses.
According to a regulatory filing made public earlier this week, “The Big Short” investor Michael Burry used put options to bet against the Ark Innovation ETF. When the underlying security’s price falls, investors profit from puts. According to The Wall Street Journal, several other hedge funds established new bearish positions against the Ark Innovation ETF in the second quarter.
The Ark Innovation ETF is the flagship fund of Ark Invest, which Wood founded. Last year, Wood’s profile skyrocketed after several Ark ETFs posted triple-digit percentage gains, attracting billions of dollars in inflows. The star money manager is well-known for her bullish views on electric vehicle manufacturer Tesla, and she describes her investment style as centered on “disruptive innovation.”
The top three holdings of the Ark Innovation ETF as of Tuesday’s close were Tesla, digital health company Teladoc, and streaming device maker Roku. The actively managed fund has struggled in 2021, falling more than 5% year to date, as Wall Street has shifted its focus to more economically sensitive names that benefit from the Covid recovery.
Wood credited Burry for his famous bet against subprime mortgages in a series of tweets Tuesday, but said he doesn’t understand “the fundamentals that are creating explosive growth and investment opportunities in the innovation space.”
“Cathie Wood has never been shy about making her macro bets public,” Damodaran said. “The problem with being open and out there is that it becomes a target on your back. I have a feeling that one of the reasons everyone is after Ark is that they are resentful of her success. That is the risk of being out in public.”
Simultaneously, now that regulatory filings have made public bets against Ark’s Innovation ETF, Damodaran believes investors will flock to the fund in a manner similar to the Reddit-fueled frenzy in GameStop and AMC Entertainment.
“It’ll be interesting to see how this plays out because I wouldn’t be surprised if people jump on the Ark bandwagon and you get pushback against the short sales,” he said. “Eventually, the truth will triumph. But, before you get to ‘eventually,’ a lot of people could lose their money.”