One takeaway from Chase Coleman's 13F filing for Q3 was that his hedge fund, Tiger Global Management, showed a keen interest in the FANG stocks, with one major exception. Coleman's fund dissolved its stake in Google's parent company, Alphabet (GOOGL), selling off shares worth about $66 million over the course of the quarter.
The news comes as a result of the 13F filing submitted to the U.S. Securities and Exchange Commission in advance of last week's deadline, as reported on by CNBC. At the same time, Coleman bought up huge quantities of the three other stocks making up the FANG group: Netflix (NFLX), Amazon.com, (AMZN), and Facebook (FB). (See also: Chase Coleman's Success Story: Net Worth, Education & Top Quotes.)
Major Purchases in Other Areas
Coleman bought almost $500 million in Netflix shares, as well as about $275 million of Amazon and $229 million of Facebook.
At the same time, Tiger Global also made purchases in several other areas. Tiger Global Management added 3.88 million shares to its stake in Fiat Chrysler (FCAU), worth about $222 million. It also took on a new stake valued at $137 million in the design software company Autodesk (ADSK).
There were other international additions to the list of stocks in Tiger's portfolio. The fund took on new stakes in China's answer to Twitter, Weibo (WB) as well as its parent company, Sina. It also added to its holdings in e-commerce companies Alibaba (BABA) and JD.com (JD), adding 191,000 and 5.38 million shares, respectively.
Why Sell Google?
All of this information may prompt investors to ask why Coleman decided to sell off Google in the third quarter. After all, the other purchases suggest that Tiger Global was willing to spend money to make new investments over the three-month period ended September 30, 2017.
Unfortunately, there is nothing in the 13F filing to specify exactly why Coleman made the decision that he did, as the filing only reveals the total holdings of a company during the period in question. Perhaps it was merely a sale of convenience in order to free up assets for one of the other purchases, or perhaps Coleman believed that GOOGL shares were likely to decline. In actuality, the broader trend since September has been the opposite direction, with Alphabet stock rising overall since that time.
It's also worth noting that outside investors and analysts will not see all of Coleman's investments in the 13F filing. These documents only contain a portion of a fund's portfolio, and they are out of date, at that. In fact, the information presented in the 13F hasn't been timely since the end of September, more than 6 weeks ago. Since, it's likely Coleman has continued to make changes to Tiger's portfolio.