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Chase Coleman's Tiger Global Raises Bet on Sea and Sunrun

- By James Li

Chase Coleman (Trades, Portfolio)'s Tiger Global Management disclosed on Thursday that he expanded his holding in Sea Ltd. (SE) and continued increasing his holding in Sunrun Inc. (RUN).


A former protege of Tiger Management's Julian Robertson (Trades, Portfolio), Coleman primarily invests in small-cap and technology companies. According to his Aug. 14 portfolio report, the tech guru's top four buys for the second quarter were Spotify Technology SA (SPOT), Uxin Ltd. (UXIN), Coupa Software Inc. (COUP) and Adobe Systems Inc. (ADBE).

Sea

Tiger Global invested in 3,013,187 shares of Sea for $13.57 per share. With this transaction, the firm increased its equity portfolio 0.21%.

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The Singaporean application software company engages in the digital entertainment, e-commerce and digital financial service businesses in Greater Southeast Asia. CEO Forrest Li said on Wednesday that Sea reported strong quarterly results, driven primarily by rapid expansion of e-commerce platform Shoppe. Marketplace revenues and gross merchandise value increased 69% quarter over quarter and 14% quarter over quarter as merchants increasingly invest in the company's value-added services.

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Sunrun

Coleman's firm added a net 8,194,606 shares of Sunrun during the quarter. The company's time-weighted average price for the quarter was $10.85. As of Aug. 20, the tech guru owns 14,876,300 shares.

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San Francisco-based Sunrun provides solar service offerings and installs energy solar systems for homeowners. CEO Lynn Jurich said on Aug. 9 that total customers as of the June quarter exceeded 202,000, a 29% year-over-year increase. Revenues of $170.5 million increased 31% primarily due to a 58% growth in customer agreements and incentives revenues.

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Sunrun's revenue has increased approximately 25% per year over the past three years, a rate that outperforms 86% of global competitors .

Spotify

Tiger Global disclosed on June 6 that the firm invested in 12,802,601 shares of Spotify for $165.64 per share, giving the position 12.36% equity portfolio space. The stock averaged $159.94 during the quarter.

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The Swedish music streaming company provides services to over 180 million users , including 83 million premium subscribers as of the June quarter. GuruFocus ranks Spotify's financial strength 6 out of 10 on several factors, including a strong Altman Z-score of 6.78.

Other gurus that invested in Spotify during the quarter include George Soros (Trades, Portfolio), Wilbur Ross (Trades, Portfolio)' Invesco Private Capital and Ron Baron (Trades, Portfolio).

Uxin

The firm invested in 24,910,522 shares of Uxin for an average price of $9.49 per share, giving the position 1.17% equity portfolio space.

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Uxin said in its June 22 prospectus that the company "witnessed significant growth" in its business since its 2011 inception, including a 47.8% year-over-year increase in gross merchandise value during the March quarter.

Coupa

Tiger Global invested in 1.415 million shares of Coupa for an average price of $53.18 per share, giving the position 0.46% equity portfolio space.

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San Mateo, California-based Coupa provides spend management solutions through a software-as-a-service business model. The company's financial strength ranks 6 out of 10 primarily due to a strong Altman Z-score of 7.23.

Soros also invested in Coupa during the quarter.

Adobe Systems

The firm invested in 287,000 shares of Adobe Systems for an average price of $236.35 per share, giving the position 0.36% equity portfolio space.

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Adobe, best known for products like Photoshop and the portable document format reader, said on June 14 that revenues for the quarter ending June 1 increased 24% year over year on continued momentum in its digital media and experience businesses. GuruFocus ranks Adobe's business predictability 2.5 stars out of five and lists three positive investing signs : expanding operating margins , consistent revenue growth and a strong Piotroski F-score of 9. Based on these factors, Adobe's profitability ranks 9 out of 10.

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Having established a 400,000-share stake in Adobe during the first quarter, Daniel Loeb (Trades, Portfolio) added 300,000 shares during the second quarter.

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See also

The firm's other top buys include GDS Holdings Ltd. (GDS), HUYA Inc. (HUYA), Pivotal Software Inc. (PVTL), DocuSign Inc. (DOCU) and Puxin Ltd. (NEW).

Disclosure: No positions.

This article first appeared on GuruFocus.