Tracking Lone Pine Capital Portfolio – Q1 2024 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 5/15/2024. 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 Q4 2023.

This quarter, Lone Pine’s 13F portfolio value increased from $11.56B to $12.67B. The number of holdings remained steady at 26. The top three positions are at ~21% while the top five are ~33% of the 13F assets: Meta Platforms, Taiwan Semi, Microsoft, Amazon.com, and Salesforce.com.

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.

New Stakes:

Vistra Corp (VST): VST is a 3.52% of the portfolio position established this quarter at prices between $37.94 and $71.20. The stock currently trades well above that range at $85.91.

Spotify Technology (SPOT): The 3.51% SPOT stake was purchased this quarter at prices between ~$188 and ~$270 and it is now above that range at ~$319.

AppLovin Corp (APP): APP is a 2.91% of the portfolio position established this quarter at prices between $38.11 and $72.60 and it now goes for $80.48.

McKesson Corp (MCK): The 2.38% MCK stake was purchased this quarter at prices between ~$473 and ~$539. The stock currently trades at ~$600.

Constellation Energy (CEG): CEG is a 1.28% position established this quarter at prices between ~$111 and ~$187. The stock is now at ~$210.

Stake Disposals:

UnitedHealth Group (UNH): The ~4% 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 had wavered. H2 2022 saw a one-third stake increase at prices between ~$500 and ~$555 while the next quarter saw a ~16% selling. The stake was disposed this quarter at prices between ~$471 and ~$543. The stock is now at ~$484.

HDFC Bank (HDB): HDB was a 2.70% of the portfolio position purchased during H2 2022 at prices between ~$55 and ~$71. There was a ~35% stake increase during Q2 2023 at prices between ~$64 and ~$71. That was followed by a ~14% increase in the next quarter. The stake was sold this quarter at prices between $52.36 and $66.62. It now goes for $65.

Blackstone (BX), and General Electric (GE): BX was a 2.51% of the portfolio stake purchased in the last quarter at prices between ~$90 and ~$133 and the stock currently trades at ~$124. The elimination this quarter was at prices between ~$115 and ~$131. GE was a 2.32% of the portfolio stake purchased in the last quarter at prices between ~$106 and ~$128 and the stock is now at ~$161. The position was sold this quarter at prices between ~$99 and ~$144.

Stake Increases:

Microsoft Corporation (MSFT): MSFT is now at 6.41% of the portfolio. It was established in Q2 2017 at prices between $65 and $72.50. The stake has wavered. Recent activity follows. The two quarters through Q3 2022 saw a ~43% reduction at prices between ~$233 and ~$315. The next quarter saw a ~23% stake increase while in Q1 2023 there was a similar reduction. The stake was decreased by 28% during Q3 2023 at prices between ~$312 and ~$358. The stock is now at ~$452. There was a ~7% stake increase this quarter.

KKR & Company (KKR): KKR is a 5.55% of the portfolio position purchased during Q1 2023 at prices between $46.70 and $59.10 and the stock currently trades at ~$106. There was a ~5% trimming in the last quarter while this quarter saw a ~12% increase.

Philip Morris Intl. (PM): The 4.82% PM position was established in the last quarter at prices between ~$87 and ~$96 and it is now at $102. The position was increased by 122% this quarter at prices between $87.76 and $94.97.

Intuit Inc. (INTU): INTU is a 4.63% of the portfolio stake established in the last quarter at prices between ~$479 and ~$629 and the stock currently trades at ~$638. The stake was increased by 21% this quarter at prices between ~$585 and ~$668.

Block Inc. (SQ): The 4.50% SQ stake was purchased during Q3 2023 at prices between ~$44 and ~$81. There was a ~70% stake increase in the last quarter at prices between ~$39 and ~$80. The stock currently trades at $63.29. There was a minor ~2% increase this quarter.

ASML Holding NV (ASML): ASML is a 3.78% of the portfolio position established during H1 2023 at prices between ~$379 and ~$697. There was a ~17% trimming in the next quarter while the last quarter saw a ~13% stake increase. This quarter also saw a similar increase. The stock currently trades at ~$1017.

EPAM Systems (EPAM): The 2.03% EPAM stake saw a ~9% increase this quarter.

Stake Decreases:

Meta Platforms (META): META is the largest 13F position in the portfolio at 8.19%. It was established during Q3 2023 at prices between ~$283 and ~$326 and the stock currently trades well above that range at ~$513. There was a minor ~3% stake increase in the last quarter. The stake was decreased by 26% this quarter at prices between ~$344 and ~$512.

Taiwan Semi (TSM): TSM is a large (top three) 6.63% of the portfolio position purchased in Q1 2022 at prices between ~$99 and ~$141. The three quarters through Q4 2022 saw a ~30% stake increase at prices between ~$60 and ~$105. H1 2023 saw a ~40% selling at prices between ~$74 and ~$107 while in the next quarter there was a ~22% stake increase at prices between ~$84 and ~$105. The stock currently trades at ~$172. The last quarter saw a ~11% trimming and that was followed by a similar reduction this quarter.

Amazon.com (AMZN): AMZN is currently a large (top five) position at 6.40% of the portfolio. It was established in Q4 2017 at prices between ~$48 and ~$60. The position has wavered. Recent activity follows. The position was reduced by ~30% in Q1 2022 at prices between ~$136 and ~$170. That was followed with a ~25% selling during Q3 2022 at prices between ~$106 and ~$145. The next quarter saw a ~45% stake increase at prices between ~$82 and ~$121 while H1 2023 saw a ~50% reduction at prices between ~$83 and ~$130. The stake was decreased by 18% this quarter at prices between ~$145 and ~$181. The stock is now at ~$194.

Salesforce.com (CRM): CRM is a 5.71% of the portfolio stake established during the two quarters through Q1 2023 at prices between ~$128 and ~$200. The next quarter saw a ~17% trimming while during Q3 2023 there was a ~47% stake increase at prices between ~$203 and ~$234. The stock currently trades at ~$243. There was a ~4% trimming this quarter.

PTC Inc. (PTC): PTC is a 4.43% of the portfolio position purchased during Q3 2022 at prices between ~$100 and ~$126 and the stock currently trades at ~$178. There was a ~6% trimming this quarter.

Bath & Body Works (BBWI): BBWI is currently at 3.86% of the portfolio. It was purchased in Q1 2020 at prices between ~$9 and ~$25. There was a ~26% selling in the five quarters through Q2 2023. That was followed by a ~47% reduction in the next quarter at prices between ~$31.50 and ~$39. The last quarter saw a ~20% stake increase at prices between ~$28 and ~$45. It is now at ~$40. There was a ~7% trimming this quarter.

Note 1: 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 2021.

Note 2: They have a ~5% ownership stake in the business.

LPL Financial Holdings (LPLA): LPL is a 3.51% of the portfolio stake established during Q2 2022 at prices between ~$168 and ~$219 and the stock currently trades at ~$275. There was a ~8% trimming during Q3 2023 and a similar reduction this quarter.

Workday Inc. (WDAY): WDAY is currently at ~3% of the portfolio. It was established in 2021 at prices between ~$221 and ~$301. The six quarters through Q2 2023 saw a ~55% reduction at prices between ~$133 and ~$244. That was followed by a ~40% selling in the last quarter at prices between ~$205 and ~$279. The stock is now at ~$217. This quarter also saw a ~9% trimming.

Booking Holdings (BKNG): The ~3% BKNG position was purchased in Q2 2022 at prices between ~$1749 and ~$2375. The two quarters through Q1 2023 saw a ~20% trimming while the next quarter saw a minor ~3% increase. The stake was decreased by 29% during Q3 2023 at prices between ~$2633 and ~$3243. This quarter saw another ~32% selling at prices between ~$3399 and ~$3892. The stock is now at ~$3982.

Live Nation (LYV): LYV is a 2.69% of the portfolio position purchased during Q2 2023 at prices between ~$65 and ~$92. The stock currently trades at ~$90. There was a ~18% trimming in the two quarters through Q3 2023. This quarter also saw a ~8% trimming.

Mastercard (MA): MA is a 2.59% of the portfolio position purchased during Q4 2021 at prices between ~$306 and ~$370. The position was reduced by ~70% during H1 2022 at prices between ~$309 and ~$397. That was followed by a one-third reduction during H1 2023 at prices between ~$283 and ~$382. Q3 2023 saw a ~50% stake increase at prices between ~$388 and ~$417 while the last quarter saw the position sold down by ~35% at prices between ~$365 and ~$426. The stake was decreased by 38% this quarter at prices between ~$418 and ~$488. The stock currently trades at ~$452.

Dick’s Sporting Goods (DKS): The 2.13% DKS stake was purchased during H1 2022 at prices between ~$71 and ~$118. There was a ~30% reduction during Q2 2023 at prices between ~$122 and ~$149. That was followed by a ~11% trimming in the next quarter. The stake was decreased by 59% this quarter at prices between ~$138 and ~$225. The stock currently trades at ~$226.

ICICI Bank (IBN): The ~2% of the portfolio IBN stake was established during Q3 2022 at prices between ~$18 and ~$23 and it is now at $28.90. The stake was decreased by 20% this quarter at prices between $23.16 and $26.48.

Kept Steady:

AvidXchange Holdings (AVDX): The very small 0.53% stake in AVDX was kept steady this quarter.

The spreadsheet below highlights changes to Mandel’s 13F stock holdings in Q1 2024:

Source: John Vincent. Data constructed from Lone Pine Capital’s 13F filings for Q4 2023 and Q1 2024.

Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.