In the face of all of the fear and confusion surrounding China’s sharp stock market decline in June, and the recent moves by its central bank to weaken the Chinese currency, one billionaire has been using the opportunity to load up on Chinese stocks.
His name is Chase Coleman. He runs Tiger Global, a hedge fund that was seeded by billionaire Julian Robertson.
Few have had the performance over the past fifteen years that can compare to Coleman’s. According to an investor letter from Tiger Global, his hedge fund has returned 21% annualized on long positions since 2001. That compares to a 4.5% annualized return for the S&P 500. This run has made Coleman a billionaire before the age of 40.
Not only does Coleman have more than 20% of his hedge fund invested in Chinese companies, but he has been aggressively building those big stakes over the past two months as China’s stock market slid.
At Billionairesportfolio.com, our strategy is rooted in following the moves of the world’s best billionaire investors. This strategy can be even more powerful when we are able to “buy the billionaire on a dip.” In all of five of the stocks listed below, we can follow the wunderkind billionaire hedge funder, Chase Coleman’s lead, into his plays on China. In three of the stocks, we can buy them cheaper than the price Coleman paid for his shares.
1) JD.Com (JD)- JD.com is currently Chase Coleman’s biggest position in his hedge fund, making up nearly 7% of the fund. This stock has been slammed recently, which offers an attractive entry point into one of the fastest growing e-commerce stocks in China.
2) Alibaba (BABA) – Coleman has 6% of his hedge fund invested in Alibaba. Alibaba was hit hard on a weaker earnings report today, but is a dominant company in China, with huge potential growth. Baba shares are 40% off of the highs of just nine months ago, and trading cheaper than where Coleman bought his shares.
3) Vipshop Holding (VIPS) – This is Coleman’s third largest position in China and he is down on his investment. VIPS also happens to be one of billionaire hedge fund manager John Burbank’s top positions at his fund Passport Capital. VIPS has been a highly volatile stock, going from $19 to $30 this year and back to $19 today.
4) 58.com (WUBA)- In recent weeks, while the rest of the world was panicking about China’s stock market volatility, Chase Coleman added to his positon of the Chinese internet company, 58.com, and now owns more than 6.3% of the company. WUBA sold for $83 just months ago, and now trades at $51, offering huge upside if the stock bottoms here.
5) eHi Car Services (EHIC)- In June, Coleman and Tiger Global initiated a brand new position, (21.5% ownership) in EHIC, the “Uber of China.” He is now down on this position, so you are able to buy eHi at a cheaper price than one of the best hedge fund managers on the planet.
Billionairesportfolio.com, run by two veterans of the hedge fund industry, helps self-directed investors invest alongside the world’s best billionaire investors. By selecting the best ideas from the best billionaire investors and hedge funds, our exited stock investment recommendations have averaged a 27% gain since 2012.
At Billionairesportfolio.com we actively manage a portfolio of the “best ideas” from the world’s best hedge funds, and our members get to follow along.
Following the highest conviction trades of the world’s best hedge funds works especially well in the biotech sector. It gives you direct access to the smartest investment minds with a niche concentration in science and medicine. They work for you, for free. This is critical, because there is no more complicated sector than biotech. You virtually need an MD or PhD from Harvard or Johns Hopkins to understand these companies.
With that said, the following four stocks are all owned by some of the best biotech hedge funds in the world. Moreover, they all have an average analyst price target that is at least 200% higher than its current share price.
1) AcelRX Pharmaceuticals (ACRX) has a current share price of $7. The consensus analyst price target is $15. That gives us a “street projected return” of 114%. Perceptive Advisors owns more than 15% of ACRX. Perspective is one of the top performing biotech hedge funds in the world, managing more than a billion dollars and returning an incredible 42% annualized since 1999. If you would have invested $10,000 in Perceptive in 1999, you would now have $1.3 million.
2) Ocera Therapeutics (OCRX) has a current share of $6.97. The consensus analyst price target is $17. That gives us a “street projected return of 143%. Ocera is owned by RA Capital Management, another top biotech focused hedge fund. RA Capital has returned 40% annualized since 2002, without one losing year, and is run by Peter Kolchinsky, a Harvard PhD in Virology.
3) Ariad Pharmaceuticals (ARIA) has a current share price of $6.50. The consensus analyst price target is $14. That gives us a “street projected return of 115%. Ariad is owned by one of the best emerging biotech hedge funds, Sarissa Capital Management. Sarissa is run by Alex Denner, a Yale PhD and the former head of healthcare investments for Carl Icahn. Sarissa owns almost 7% of Ariad.
4) Infinity Pharmaceuticals (INFI) has a current share price of $15. The consensus analyst price target is $39. That gives us a “street projected return of 160%. INFY is owned by one of the best and longest running biotech focused hedge funds, Orbimed Advisors. Orbimed runs over $10 billion dollars. The fund is run by the Princeton educated Samuel Isaly, and has returned 27% annualized since 1993. Orbimed owns almost 10% of Infinity Pharmaceuticals.
BillionairesPortfolio.com empowers self directed investors with an actively managed portfolio of the best ideas from the best hedge funds in the world. You can look over the shoulders of the smartest, most influential investors in the world. Click here to join.
This past Friday on CNBC, billionaire energy mogul T. Boone Pickens predicted that oil prices would be near $80 by the fourth quarter of this year. His oil prediction is based on the thesis that U.S. energy companies will drastically cut back on production. That would decrease the supply of oil produced, eventually driving prices higher again.
Pickens said the number of rigs drilling for oil in the U.S. declined at the second biggest weekly rate in more than 24 years.
If he’s right, and oil bounces back to levels last seen just two months ago, many small and mid-cap energy stocks are in position to double or triple, by returning to levels traded when oil was last $80. Of course, first oil needs to bottom. For those looking for reasons to believe a bottom is here for oil, at the close today, crude traded into rising 16-year trendline support.
This trend started in December of 1998 and touched in late 2001, and again in late 2008 — each time bouncing aggressively. From those dates, within twelve months oil was 160% higher, 100% higher and 146% higher, respectively.
Through our analysis at BillionairesPortfolio.com, we’ve identified the following five stocks that could double or triple if oil prices go back to $80.
1) Oasis Petroleum (OAS)- Billionaire hedge fund manager John Paulson owns nearly 10% of this stock. The activist hedge fund SPO Advisory owns 8% and has been buying the stock on almost every dip. When oil was last $80, OAS was trading $30.74 or 130% higher than current levels.
2) SandRidge Energy (SD)- Billionaire hedge fund managers, Leon Cooperman and Prem Watsa own almost 20% of SandRidge. This stock traded above $4 last November, when oil was $80. That’s 185% higher than its current share price today.
3) Gran Tierra Energy (GTE)- This might be the cheapest energy stock on the planet. The company has zero debt, and $1.30 in cash per share, more than half of its current share price of $2.26. With this much cash, you are getting the company’s oil and natural gas assets for a song. When oil was last $80, GTE was trading at $4.64 or 110% higher than current levels.
4) Energy XXI LTD. (EXXI) – If oil goes back to $80 a barrel, EXXI should be worth almost $8 a share. That’s nearly a triple from its current price of $2.80. Energy XXI sold for as much as $24 a share just 7 months ago.
5) Breitburn Energy Partners (BBEP) – Breitburn should be a near triple if oil goes back to $80. The stock already popped today by 22%. BBEP currently sold for $17.56 last November, when oil prices were at $80 a barrel. Breitburn pays an incredible $1 per share dividend, giving the stock a current dividend yield of 15%.
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