Here's what top investor Steve Mandel is buying

A trader works on the floor of the New York Stock Exchange.
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A trader works on the floor of the New York Stock Exchange.

Stephen Mandel of Lone Pine Capital is considered among hedge fund investors to be one of smartest fundamental growth managers in the industry. A filing showing his latest holdings hit the Street late Monday.

Mandel honed his craft as the consumer analyst for Julian Robertson's Tiger Management and now manages more than $36 billion of capital.

His Lone Cascade fund, a long-focused investment vehicle, posted a 12 percent annualized net return since 2005, compared with a 6.6 percent annualized return for the S&P 500, according to an investor letter sent to clients Oct. 14. This year, the fund is down 2.5 percent.

For his investments, Mandel looks for companies with a solid return on capital, good cash flow, a prudent balance sheet, competitive barriers and a strong management team, according to an investor presentation.

Here is what the billionaire investor is buying, according to the filing, and why...

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