Coleman focuses on innovation and holds many tech leaders in his portfolio.
It's that time of year again: Billionaire investors have offered us a peek into their latest investing moves through 13F filings. These are required quarterly by the Securities and Exchange Commission (SEC) from managers of more than $100 million in U.S. securities, and they detail the latest buys and sells of these major investors.
Why are 13Fs useful for us? They offer us an idea of what these billionaires are doing in the current market environment -- and since these investors clearly have proven their abilities over the years, we might look to them for investing inspiration.
This doesn't mean we should follow their every move. Some may not be right for our investing strategies or our comfort with risk. But becoming familiar with the moves and strategies of billionaires might offer us some ideas to adapt to our own portfolios.
In the latest filing period, reported this month, billionaire Chase Coleman of Tiger Global Management added to his shares of two artificial intelligence (AI) giants that each completed stock splits last year -- and they've gone on to gain in the double digits since. Let's take a closer look at Coleman's first-quarter moves and decide whether these stocks are buys today.
Coleman got his start working as a research analyst for famed investor Julian Robertson at Tiger Management, and eventually became a partner. Known as one of Robertson's "Tiger Cubs," he then went on to launch Tiger Global, a firm that today manages more than $50 billion -- and focuses heavily on innovation. For example, his top holdings as of the end of the first quarter were Meta Platforms, with a 16% weighting, and Microsoft, weighted 8% in the portfolio.
Now, let's consider Coleman's recent purchases of two AI stocks that completed stock splits last year. I'm talking about AI chip giant Nvidia (NASDAQ: NVDA) and networking powerhouse Broadcom (NASDAQ: AVGO). Nvidia completed its stock split last June and has advanced 11% since that time, and Broadcom split its stock in July and has soared 34% since then.
The companies decided on splits after gains pushed their share prices beyond $1,000 -- a stock split would bring these prices down, making the stocks more accessible for employees and other potential shareholders. A stock split doesn't change anything fundamental about a company, but it lowers the per-share price by issuing more shares to current holders. These operations also may signal a company is confident about its prospects, with the idea that the stock has what it takes to soar once again.