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Tiger Global reduces position in Hertz Global Holdings

Adam Rogers - Author
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Feb. 27 2015, Updated 1:05 p.m. ET

Tiger Global and Hertz Global Holdings

Tiger Global Management added new positions in Alibaba Group Holdings (BABA) and Pilgrim’s Pride (PPC). The fund increased its positions in Autohome (ATHM) and Avis Budget Group (CAR), and decreased its positions in Visa (V) and Hertz Global Holdings (HTZ). In addition, the fund sold off its position in Burger King (BKW) and Priceline Group (PCLN).

The hedge fund has decreased investments in Hertz Global Holdings by over $46 million. The fund’s current position in Hertz accounts for 4.20% of the fund’s total portfolio, down from 5.34% in the third quarter. Hertz has a 0.10% exposure to the iShares Russell 1000 Growth ETF (IWF). The ETF tracks the overall performance of 500 publicly traded companies in the growth category.

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Overview of Hertz

Hertz Global Holdings operates its car rental business through the Hertz, Dollar Thrifty, and Firefly brands. The company has about 11,555 corporate and franchisee locations in North America, Europe, South America, Asia, Australia, Africa, the Middle East, and New Zealand. Hertz’s Dollar and Thrifty brands have roughly 1,400 corporate and franchisee locations in about 75 countries. The Firefly brand operates approximately 65 corporate and franchisee locations in seven countries.

Hertz has owned an equipment rental business since 1965. The company also owns Donlen Corporation, a fleet leasing and management business based in Northbrook, Illinois.

Hertz’s annual filing said revenues have seen a CAGR (compound annual growth rate) of 6.9% over the last 20 years. The company has had YoY (year-over-year) growth in 17 of those 20 years. Some of Hertz’s competitors in the car rental space include Avis Budget Group (CAR), Enterprise Rent-A-Car, and Uber.

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Hertz was declared best car rental company

In January, the Business Travel Awards 2015 named Hertz the best car rental company for “its on-going ability to constantly review the car rental market and what its customers really want, and adapt and innovate accordingly.”

Neil Cunningham, general manager of Hertz UK, said, “We’re delighted the judges recognized our hard work in pushing the boundaries of car hire in the past year. We are constantly adapting to the needs of our customers to provide innovative car rental solutions and services that fit around their changing lifestyles. Some examples of this are our Hertz 24/7 technology, our unique Hertz Collections and our enhanced loyalty program Gold Plus Rewards.”

Hertz 24/7 is the firm’s innovative car rental service that provides carpool services to a variety of businesses and organizations, including Imperial College, London. The service offers drivers more flexibility and saves costs as well.

Hertz owes $700,000 in taxes and penalties

Hertz Global Holdings owes in excess of $700,000 in unpaid taxes as well as interest and penalties. The company blamed “administrative oversight” for the penalties. A county audit found Hertz owed the airport over $17,000 in unreported revenue and also discovered the missing taxes.

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