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Tiger Global Management, LLC, is a fundamentally oriented global investment firm. The firm deploys capital in two businesses—private equity partnerships and public equity funds. Tiger Global’s private equity partnerships have ten-year horizons and invest in growth companies in the global Internet and technology sectors. The firm’s public equity funds focus on long-term trends in the technology, telecom, media, retail, and consumer sectors. For public and private equity investments, the firm invests across the globe with a focus on the United States, China, India, Southeast Asia, Latin America, and Eastern Europe. The New York–based Tiger Global was founded in 2001, and it has about $6 billion in assets under management.
Abbreviated financial summaries and metrics for these securities are included below. Detailed analysis and recommendations require a subscription (more information at the bottom of the article).
In this six-part series, we’ll go through some of the main positions Tiger Global Management traded this past quarter.
Tiger Global started new positions in Yahoo Inc. (YHOO), Liberty Ventures (LINTA), SodaStream International Ltd. (SODA), and TripAdvisor Inc. (TRIP) and it sold Sinclair Broadcast Group (SBGI) and QUALCOMM Inc. (QCOM).
Why buy Liberty Ventures (LINTA)?
Liberty Interactive Group’s revenue increased 2% to $2.2 billion in the third quarter, adjusted OIBDA was relatively flat, at $396 million, and operating income increased 3% to $199 million. The increase in revenue was due to favorable results at QVC and the eCommerce companies. It said its QVC segment posted solid results in the U.S., while the international markets proved more challenging and were negatively impacted by currency fluctuations in Japan and the UK. QVC revenue increased 2% in the third quarter, to $1.9 billion. CNR Home Shopping, QVC’s joint venture in China, experienced a revenue increase of 54% in local currency in the third quarter.
Liberty Interactive Group’s eCommerce businesses increased revenue 7%, to $298 million for the third quarter. The increased revenue was the result of increased marketing efforts driving additional traffic, investments in site improvements, increased shipping charges, and broader inventory offerings. Plus, the increased revenue was partially driven by selling product at a discount in order to continue to manage inventory to appropriate levels.
In October, shares surged after Liberty Interactive’s management announced plans for the company to split in two. One group would be a QVC tracking stock to be renamed “the QVC Group” common stock, including its approximate 38% interest in HSN, Inc., along with cash and certain liabilities. The other stock, known as “Liberty Digital Commerce,” would include its e-commerce holdings Provide Commerce, Backcountry.com, Bodybuilding.com, CommerceHub, Right Start, and Evite along with cash and certain liabilities.
The company also plans to spin off its stakes in the travel website TripAdvisor and online retailer BuySeasons into a new company known as “Liberty Trip Advisor Holdings.” Analysts expect this move will be beneficial in unlocking shareholder value.
Liberty Interactive Corporation, owned by John Malone, operates and owns interests in a broad range of digital commerce businesses. Those interests are currently attributed to two tracking stock groups: Liberty Interactive Group and Liberty Ventures Group. The Liberty Interactive Group primarily focuses on digital commerce operating businesses. Currently, the Liberty Interactive Group consists of Liberty Interactive Corporation’s subsidiaries Backcountry.com, Bodybuilding.com, Celebrate Interactive (including Evite, gifts.com, and Liberty Advertising), CommerceHub, MotoSport, Provide Commerce, QVC, Right Start, and Liberty Interactive Corporation’s interests in HSN and Lockerz. Liberty Ventures Group primarily focuses on business investments other than Liberty Interactive Corporation’s video and eCommerce operating businesses. Currently, the Liberty Interactive Group and consists of its subsidiary TripAdvisor, its interest in Expedia, and minority interests in AOL, Interval Leisure Group, Time Warner, Time Warner Cable, Tree.com (Lending Tree), and various green energy investments.
Tiger Management Corp., also known as “The Tiger Fund,” was a hedge fund founded by Julian Robertson. The fund began investing in 1980 and closed in March 2000. After closing his Tiger Fund in 2000, Robertson used his own capital to support and finance upcoming hedge fund managers. One of the seeded funds is Tiger Global Management LLC, which was set up with managing partner Charles “Chase” Payson Coleman III. The fund is co-managed by Feroz Dewan.
According to a Bloomberg article, “Tiger cub” Chase Coleman is a descendent of Peter Stuyvesant, the last Dutch governor of New York. He graduated from Williams College and worked as a technology analyst for Robertson at Tiger Management LLC. Coleman initially named his fund “Tiger Technology Management,” later changed to Tiger Global.