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Philippe Laffont's Top 5 Buys of the 1st Quarter

- By James Li

Philippe Laffont (Trades, Portfolio), founder of Coatue Management, disclosed this week his top six buys for the first quarter were Adobe Inc. (ADBE), Mastercard Inc. (MA), Intuit Inc. (INTU), Visa Inc. (NYSE:V) and Micron Technology Inc. (MU).


The former protege of Tiger Management's Julian Robertson (Trades, Portfolio) founded Coatue Management in 1999. The technology-driven hedge fund invests in long and short equity positions using a top-down, fundamental analysis approach. As of quarter-end, the 116-stock equity portfolio has a 57.30% weight in the technology sector, followed by a 20.35% weight in the consumer cyclical sector.

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Adobe

Laffont added 1,351,715 shares of Adobe, increasing the stake 184.21% and his equity portfolio 3.99%. Shares averaged $251.74 during the first quarter.

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San Jose, California-based Adobe develops and sells various software and services like Photoshop and the popular "portable document format," or PDF, file. GuruFocus ranks the company's profitability 9 out of 10 on several positive indicators, which include expanding profit margins, a three-year revenue growth rate that outperforms 83.11% of global competitors and a return on equity near a 10-year high of 29.51%.

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Ken Fisher (Trades, Portfolio) also increased his holding of Adobe during the quarter.

Mastercard

Laffont added 1,479,381 shares of Mastercard, increasing the stake 234.29% and his equity portfolio 3.85%. Shares averaged $214.63 during the quarter.

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The Purchase, New York-based credit card company manages a global payment network where it provides authorization, clearing and settlement of electronic payment transactions. GuruFocus ranks the company's financial strength 7 out of 10 and profitability 8 out of 10 on several positive indicators, which include a robust Altman Z-score of 11.89 and operating margins that are outperforming 80% of global competitors.

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Warren Buffett (Trades, Portfolio)'s Berkshire Hathaway Inc. (BRK-A)(BRK-B) owns 4,934,756 shares of Mastercard as of quarter-end.

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Intuit

Laffont added 913,339 shares of Intuit, boosting the position 442.84% and his equity portfolio 2.64%.

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The Mountain View, California-based company develops and markets QuickBooks, TurboTax and Mint, software products for small-business accounting, personal tax returns and personal finances. GuruFocus ranks Intuit's financial strength 8 out of 10 on several positive signs, which include robust interest coverage of 103.35 and an Altman Z-score of 19.45.

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Visa

Laffont added 1,458,037 shares of Visa, increasing the holding 147.48% and his equity portfolio 2.52%. Shares averaged $143.85 during the quarter.

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The San Francisco-based company manages payment brands and a network that allows Visa to provide authorization and settlement of electronic payment transactions. GuruFocus ranks the company's profitability 9 out of 10 on several positive indicators, which include expanding profit margins, a 4.5-star business predictability rank and returns that are outperforming over 86% of global competitors.

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Micron Technology

Laffont added 3,782,910 shares of Micron Technology, increasing the position 8,334.97% and his equity portfolio 1.73%.

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The Boise, Idaho-based company focuses on providing DRAM for personal companies. GuruFocus ranks the company's profitability 9 out of 10 on several positive indicators, which include a strong Piotroski F-score of 7, a 3.5-star predictability rank and operating margins that are outperforming 99.06% of global competitors.

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Mohnish Pabrai (Trades, Portfolio) increased his stake in Micron Technology by 210.74% during the quarter, increasing his equity portfolio 17.99%.

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Disclosure: No positions.

Read more here:

  • Andreas Halvorsen's Top 5 Buys of the 1st Quarter
  • Chris Davis' Top 6 Buys in 1st Quarter
  • Ralph Lauren Tumbles on Fiscal 4th-Quarter Revenue Decline



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This article first appeared on GuruFocus.