Tracking Lone Pine Capital Portfolio – Q2 2022 Update

This article is part of a series that provides an ongoing analysis of the changes made to Lone Pine Capital’s 13F portfolio on a quarterly basis. It is based on their regulatory 13F Form filed on 8/15/2022. Please visit our Tracking Stephen Mandel’s Lone Pine Capital Portfolio article for an idea on their investment philosophy and our previous update for the fund’s moves during Q1 2022.

This quarter, Lone Pine’s 13F portfolio value decreased ~37% from $16.80B to $10.61B. The number of holdings remained steady at 30. The top three positions are at ~25% while the top five are ~39% of the 13F assets: Amazon, Microsoft, Meta Platforms, Taiwan Semi, and Workday.

Note: Stephen Mandel stepped down from managing investments at Lone Pine Capital in January 2019 in a previously announced (September 2017) move. He is currently a managing director at the firm. 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 Julian Robertson: A Tiger in the Land of Bulls and Bears.

New Stakes:

LPL Financial Holdings (LPLA), Booking Holdings (BKNG), Alphabet Inc. (GOOG), EPAM Systems (EPAM), PayPal Holdings (PYPL), EQT Corporation (EQT): LPL is a ~4% of the portfolio stake established this quarter at prices between ~$168 and ~$219 and the stock currently trades at ~$233. The 3.91% BKNG position was purchased at prices between ~$1749 and ~$2375 and it is now at ~$1957. GOOG is a 3.53% of the portfolio stake established at prices between ~$106 and ~$144 and the stock is now just below that range at ~$104. The 2.86% EPAM position was purchased at prices between ~$265 and ~$348 and it is now at ~$413. PYPL is a 2.82% of the portfolio stake established at prices between ~$70 and ~$122 and it currently trades at $96.40. The ~2% EQT position was purchased at prices between ~$33 and ~$50 and it now goes for $48.09.

Fair Isaac Corp (FICO) and Grove Collaborative (GROV): These two very small (less than ~0.20% of the portfolio each) stakes were established this quarter.

Note: Including Class B shares, they have a ~10% ownership interest in Grove Collaborative.

Stake Disposals:

Match Group (MTCH): The ~4% MTCH stake saw a ~70% stake increase in Q3 2020 at prices between ~$90 and ~$121. There was a one-third selling next quarter at prices between ~$110 and ~$156 while Q1 2021 saw a ~17% stake increase at prices between ~$131 and ~$172. That was followed with another ~25% stake increase next quarter at prices between ~$137 and ~$164. There was a ~30% selling last quarter at prices between ~$85 and ~$134. The disposal this quarter was at prices between ~$69 and ~$113. The stock currently trades at $57.86.

Snap Inc. (SNAP): SNAP was a ~4% of the portfolio stake established in Q4 2020 at prices between ~$26.50 and ~$53.50 and the stock currently trades at $11.90. Q1 2021 saw a ~25% stake increase at prices between ~$49 and ~$71. That was followed with a ~50% stake increase in Q4 2021 at prices between ~$44 and ~$77. Last quarter saw a similar reduction at prices between ~$24.50 and ~$46.60. The elimination this quarter was at prices between ~$12 and ~$39.

DoorDash (DASH): The ~3% DASH stake was built over the three quarters through Q2 2021 at prices between ~$113 and ~$215. Q4 2021 saw a ~11% stake increase while last quarter there was a ~45% selling at prices between ~$76 and ~$145. The disposal this quarter was at prices between ~$58 and ~$127. The stock currently trades at $64.41.

Datadog Inc. (DDOG): DDOG was a 2.67% of the portfolio position established in Q2 2020 at prices between ~$34.50 and ~$90 and it currently goes for $95.36. There was a ~30% selling in Q4 2021 at prices between ~$137 and ~$197. The position was sold this quarter at prices between ~$82 and ~$157.

Victoria’s Secret (VSCO): L Brands spun off Victoria Secret & Company and renamed the remaining entity as Bath & Body Works. Terms called for L Brands shareholders to receive one share of VSCO for every three shares of L Brands held. VSCO shares started trading last July. Lone Pine Capital’s stake came from this transaction. Shares started trading at ~$42 and currently goes for $33.30. The disposal this quarter was at prices between ~$28 and ~$56.

Note: Lone Pine had a ~8.5% ownership interest in Victoria’s Secret as of Q1 2022.

Farfetch Ltd. (FTCH): FTCH was a 1.55% of the portfolio stake built last year at prices between ~$26 and ~$73. Last quarter saw a ~30% selling at prices between ~$11 and ~$34. The remaining position was sold this quarter at prices between ~$7 and ~$17. The stock is now at $11.31.

Note: Lone Pine Capital had a ~5.5% ownership stake in Farfetch as of Q1 2022.

Bill.com Holdings (BILL) and HubSpot Inc. (HUBS): These two small (less than ~2% of the portfolio each) stakes were sold this quarter.

Stake Decreases:

Amazon.com (AMZN): AMZN is currently the largest 13F stake at ~9% of the portfolio. It was established in Q4 2017 at prices between ~$48 and ~$60. The position has wavered. Recent activity follows. The three quarters through Q4 2020 saw a ~55% reduction at prices between ~$95 and ~$172 while next quarter there was a ~90% stake increase at prices between ~$148 and ~$169. Q3 2021 saw a ~25% selling at prices between ~$159 and ~$187 while next quarter there was a ~70% stake increase at prices between ~$160 and ~$185. The position was reduced by ~30% last quarter at prices between ~$136 and ~$170. The stock is now at ~$126. This quarter also saw minor trimming.

Microsoft Corporation (MSFT): MSFT is currently the second largest position at 8.43% of the portfolio. 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 five quarters through Q4 2019 had seen a ~63% selling at prices between $98 and $159 while next quarter saw a ~17% stake increase at prices between ~$135 and ~$189. Q1 2021 saw a ~25% stake increase at prices between ~$212 and ~$245 while in the next two quarters there was a ~40% selling at prices between ~$242 and ~$305. That was followed with a ~30% reduction this quarter at prices between ~$242 and ~$315. The stock is now at ~$245.

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 through 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.

Workday, Inc. (WDAY): The top-five 6.60% WDAY stake was established last year at prices between ~$221 and ~$301 and it is now well below that range at ~$154. Last two quarters saw a ~15% trimming.

ServiceNow, Inc. (NOW): NOW is a 5.79% stake established in Q2 2017 at prices between $84.50 and $118. The position has since wavered. Recent activity follows. Q2 2020 saw a one-third increase at prices between $250 and $403. Q4 2020 saw similar selling at prices between ~$476 and ~$565. There was a stake doubling in H1 2021 at prices between ~$454 and ~$595. Next two quarters had seen a ~20% selling at prices between ~$545 and ~$702. That was followed with a ~35% reduction this quarter at prices between ~$412 and ~$598. The stock is now at ~$435.

Mastercard (MA) and Visa (V): These fairly large stakes were established in Q4 2021. MA is a 4.59% of the portfolio position purchased at prices between ~$306 and ~$370 and the stock currently trades at ~$317. The position was reduced by ~70% over the last two quarters at prices between ~$309 and ~$397. The ~4% of the portfolio V position was established at prices between ~$190 and ~$234 and it is now at ~$195. The stake was reduced by ~55% over the last two quarters at prices between ~$189 and ~$235.

UnitedHealth Group (UNH): The 3.87% 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 position has wavered. Recent activity follows. There was a ~20% reduction in Q4 2020 at prices between ~$304 and ~$357. That was followed with a ~25% selling in Q4 2021 at prices between ~$387 and ~$506. Last two quarters saw a roughly two-thirds reduction at prices between ~$452 and ~$546. The stock is now at ~$523.

Block, Inc. (SQ) previously Square: The SQ stake was established in Q3 2020 at prices between ~$113 and ~$165. The position was almost sold out in Q4 2021 at prices between ~$158 and ~$265. The stake was rebuilt last quarter at prices between ~$89 and ~$164 but again sold down this quarter at prices between ~$58 and ~$145. The stock is now at $69.18.

Note: Square had a previous round-trip. It was a ~2% position built from Q2 2019 at prices between $57 and $82 and sold in Q2 2020 at prices between ~$44 and ~$105.

Shopify Inc. (SHOP): SHOP stake was built in Q2 2019 at prices between ~$20 and ~$33. There was a one-third increase in Q4 2019 at prices between ~$29 and ~$41. There was a ~25% reduction last quarter at prices between ~$51 and ~$136. This quarter saw the stake almost sold out at prices between ~$30 and $73. The stock currently trades at $33.85.

Note: The prices quoted above are adjusted for the 10-for-1 stock split in June.

ProShares VIX Sh Trm Fut (VIXY) Puts: The minutely small 0.02% of the portfolio stake in FIXY Puts was almost sold out this quarter.

Stake Increases:

Taiwan Semi (TSM), Meta Platforms (META), Atlassian Corp Plc (TEAM), and DICK’S Sporting Goods (DKS): These positions established last quarter were increased this quarter. TSM is a fairly large (top five) ~7% of the portfolio position purchased at prices between ~$99 and ~$141 and the stock currently trades well below that range at ~$78. This quarter saw a ~12% increase. The large (top three) 7.61% of the portfolio META stake at prices between ~$187 and ~$339 and it is now below that range at ~$150. There was a ~37% increase this quarter at prices between ~$156 and ~$234. TEAM is a 2.86% of the portfolio position established at prices between ~$239 and ~$350 and the stock is now at ~$253. This quarter saw a ~16% increase. The 3.56% DKS stake was purchased at prices between ~$98 and ~$118 and the stock currently trades at ~$114. This quarter saw a ~34% increase at prices between ~$71 and ~$108.

Thermo Fisher Scientific (TMO): TMO is a 4.77% of the portfolio position established in the last two quarters at prices between ~$500 and ~$645 and the stock currently trades at ~$552.

RH (RH): The 3.55% of the portfolio RH stake was purchased in Q2 2021 at prices between ~$588 and ~$720. Next quarter saw a ~25% stake increase at prices between ~$652 and ~$739. Q4 2021 saw a similar increase at prices between ~$527 and ~$690. Last two quarters also saw a ~12% further increase. The stock is now at $259.

Note: Lone Pine Capital has a ~7.8% ownership interest in RH Inc.

Kept Steady:

Bath & Body Works (BBWI), previously L Brands: The large 5.64% BBWI stake was purchased in Q1 2020 at prices between ~$9 and ~$25 and it is now at $37.38. There was a ~15% trimming in the last two quarters.

Note: Lone Pine Capital has a ~9% ownership stake in Bath & Body Works. Their implied cost-basis is understated in the prices above as ~$14 per share in value came back to them with the Victoria’s Secret spinoff transaction (one share of VSCO for every three shares held) in July.

AvidXchange Holdings (AVDX), First Citizens Bancshares (FCNCA), Marqeta Inc. (MQ), Sweetgreen Inc. (SG), and VTEX (VTEX): These are small (less than ~1.30% of the portfolio each) positions kept steady this quarter.

Note: Lone Pine has ~7% ownership stake each in VTEX and Marqeta.

The spreadsheet below highlights changes to Mandel’s 13F stock holdings in Q2 2022:

Source: John Vincent. Data constructed from Lone Pine Capital’s 13F filings for Q1 2022 and Q2 2022.