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...