5 Stocks These Tech-Focused Tiger Cubs Own Both

Summary

• Both gurus are the owners of Adobe
  
  adbe
  , dynatrace, uber
  
  Uber
  , Microsoft and Service Now.

veteran investor Julian Robertson (trades, portfolio) Known not only for his leadership of Tiger Management, but also for taking a group of dependents under his wing. These student investors, many of whom later opened their own practices, are referred to as “tiger cubs”.

As they were influenced by the same teacher, it is no surprise that some of these guru fund managers have similar investing styles and even invest in some stocks. is an example of Chase Coleman (Trades, Portfolios), now Head of Tiger Global Management, and robert curry (trades, portfolio), leader of Zoho Capital. Both gurus are known for their investments in tech and online media stocks.

Premium GuruFocus feature, according to the aggregated portfolio, two value investors have Adobe Inc. (ADBE, Financial), Dynatrace Inc.

dt
(DT, Financial), Uber Technologies Inc. (UBER, Financial), Microsoft Corp

msft
. (MSFT, Financial) and Service Now Inc.

Now
. (now, financial) as of the second quarter.

adobe

Both gurus left their stake in Adobe (ADBE, Financial) unchanged. Coleman holds 737,500 shares, while Kar holds 5,610 shares. The combined equity portfolio weighting is 1.27%.

The San Jose, California-based software company has a market cap of $274.77 billion; Its shares were trading around $578.75 on Tuesday with a price-earnings ratio of 47.76, a price-book ratio of 19.07 and a price-sales ratio of 18.42.

GF value line

Pain
This suggests that the stock is currently marginally overvalued based on its historical ratio, past performance and projections of future earnings.

GuruFocus gives Adobe’s financial strength a 7 out of 10 rating, driven by a comfortable level of interest coverage and a strong Altman Z-score of 16.55, which means it’s in good standing. Return on invested capital also reduces the weighted average cost of capital, indicating that value is being created as the company grows.

The company’s profitability achieved an expanded operating margin, strong return on equity, a 9 out of 10 rating on assets and capital that beats most competitors and a high Piotrowsky F-score of 8 out of 9, indicating that Conditions are healthy. Adobe also has a predictability rank of one out of five stars. According to GuruFocus, companies in this rank give an average annual return of 1.1% over a 10-year period.

GuruFocus says Coleman has gained an estimated 27.81% on his investments since the second quarter of 2018, while Karr has gained 19.61% since establishing the holding in the fourth quarter of 2020.

Primecap Management (Trades, Portfolio) is the largest master shareholder of the company with 1.54% of outstanding shares. Other top guru investors include Ken Fisher (business portfolio), steve mandel (business portfolio), spiros everything (business, portfolio), Pioneer Investments, chuck acker (business, portfolio) and Jeremy Grantham (business portfolio).

dynatrace

Karr increased his stake in Dynatrace (DT, Financial) by 50.91% to 1.1 million shares during the quarter, while Coleman left his stake unchanged with 500,000 shares. Their combined equity portfolio weighting in the stock is 9.25%.

The company, headquartered in Waltham, Massachusetts, operates a software intelligence platform with a market cap of $20.49 billion; Its shares were trading around $72.83 on Tuesday with a price-earnings ratio of 280.96, a price-book ratio of 17.92 and a price-sales ratio of 27.72.

According to the Peter Lynch chart, the valuation of the stock is high.

Dynatrace’s financial strength was rated 6 out of 10 by GuruFocus. In addition to substantial interest coverage, the company has a high Altman Z-Score of 11.75. WACC, however, eclipses the ROIC, indicating that it may struggle to create value.

The company’s profits haven’t been as good either, earning a 2 out of 10 rating despite strong margins and returns, outperforming more than half of its industry peers. The Dynatrace also has a high Piotrowsky F-score of 8.

GuruFocus data shows that Coleman has received an estimated 222.73% on his investments since the third quarter of 2019, while Karr has earned a 47.37% return since the fourth quarter of 2020.

Of the gurus invested in Dynatrace, ron baron (trades, portfolio) holds the largest share with 0.57% of the outstanding shares. steven cohen (business portfolio), Jim Simonso (business, portfolio)’ Renaissance Technology, Paul Tudor Jones (business portfolio), Ray Dalio (business, portfolio), Pioneer Investments, Louis Moore Bacon (business, portfolio) and Caxton Associates (trades, portfolio) Also owning stocks.

Uber Technologies

In the second quarter, Coleman cut his Uber (UBER, Financial) position by 0.35%, while Karr left his holding unchanged at 20,950 shares. The combined equity portfolio weighting of Gurus in the stock is 2.08%.

The San Francisco-based ridesharing company, which also provides meal and package delivery services, has a market cap of $87.7 billion; Its shares were trading around $46.66 on Tuesday with a price-book ratio of 6.17 and a price-sales ratio of 7.06.

Based on the average price-to-sales ratio chart, the stock is currently overvalued.

GuruFocus rated Uber’s financial strength 4 out of 10. As a result of issuing about $3.3 billion in new long-term debt over the past three years, the company has poor interest coverage. The low Altman Z-Score of 1.78 also warns that it may be at risk of bankruptcy if it does not improve its liquidity.

The company’s profits were also not as good, getting a rating of 1 out of 10, due to negative margins and returns that outperform most competitors. Uber’s Piotrowsky F-score of 2 is low, indicating that operating conditions are in poor condition. The company has reported declining operating income as well as revenue per share over the past several years.

GuruFocus estimates that Coleman has increased 19.65% on its investments since the second quarter of 2019, while Karr has lost about 16.3% from the first quarter of the year.

With 1.77% share, frank sands (Trades, Portfolio) is the largest master shareholder of Uber. Other top guru investors include Segalus, Philip Lafonto (business, portfolio), Cohen, daniel loeb (business portfolio), Lee Ainslie (business, portfolio) and David Taper (business portfolio).

Microsoft

While Coleman cut his stake in Microsoft (MSFT, Financial) by 4.31% in the second quarter, Karr left his 743,200-share position unchanged. Together, the combined equity portfolio weighting of Gurus is 35.23%.

Founded by the software company, headquartered in Redmond, Washington Bill Gates (trades, portfolio) has a market cap of $2.21 trillion; Its shares were trading around $293.97 on Tuesday with a price-earnings ratio of 36.61, a price-book ratio of 15.6 and a price-sales ratio of 13.33.

The GF value line shows that the stock is currently priced fairly high.

Due to its good cash-loan ratio of 1.92 and ample interest coverage, uruFocMicrosoft’s financial strength was rated 6 out of 10 by GuruFocus. The company has a strong Altman Z-score of 8.73, suggesting that it is in good standing, even as assets continue to grow rapidly, with revenues increasing. ROIC also exceeds WACC, indicating that good value creation is taking place.

The company received a profitability rating of 9 out of 10, an expanded operating margin, strong returns that outperform most industry peers, and a high Piotrowsky F-score of 8. After recording consistent earnings and revenue growth, Microsoft also has 2.5. -Star Predictable Rank. GuruFocus says that companies in this rank give an average return of 7.3% annually.

According to GuruFocus, Coleman has made an estimated 141.47% return on his investments since the fourth quarter of 2016. Karr has gained about 120.97% since the first quarter of 2019.

Fisher is the largest Guru shareholder of the company with 0.33% stake. Other gurus with large positions in the stock include Pioneer Investments, Primecap Management (trades, portfolio), Dodge & Cox, Bailey Gifford (business, portfolio), everything, mandel, Andreas Halvorsen (trades, portfolio) and Grantham.

service now

During the quarter, Coleman increased its Service Now (now, Financials) stake by 2.33%. Karr left his holding of 6,690 shares untouched. The combined equity portfolio weighting of both the gurus in the stock is 2.78%.

The Santa Clara, California-based software company, which operates a cloud computing platform to help customers manage digital workflows and enterprise operations, has a market cap of $124.19 billion; Its shares were trading around $629.51 on Tuesday with a price-earnings ratio of 746.33, a price-book ratio of 37.92 and a price-sales ratio of 24.49.

According to the GF value line, the stock is currently marginally overvalued.

GuruFocus rated Service Now’s financial strength 6 out of 10. In addition to substantial interest coverage, the company has a high Altman Z-score of 13.05, indicating that it is in good standing, even as assets are growing rapidly, with revenues increasing. WACC also topped ROIC, suggesting the company struggles to create value.

The company’s profitability received a 3 out of 10 rating in terms of its margins and outperformed its competitors by more than half the returns. ServiceNow also has a low Piotroski F-Score of 3 and a One-Star Predictable Rank.

Of the gurus who have invested in ServiceNow, Sands holds the largest stake with 1.43% of the outstanding shares. Other major Guru shareholders include Mandel and Halvorsen.

portfolio composition

Coleman’s equity portfolio of $53.16 billion, made up of 142 stocks, is largely invested in the technology and consumer cyclical sectors. Guru’s New York-based hedge fund is known for its focus on small-cap stocks and technology startups.

Like his fellow Tiger Cubs, Kar’s $704 million equity portfolio, composed of 22 stocks, is heavily invested in the technology and consumer cyclical sectors. His firm, now run as a family office, focuses on a concentrated number of investments and specializes in online media stocks.