Tiger Global Management founder Chase Coleman (Trades, Portfolio) increased his Apollo Global Management LLC (APO, Financial) stake by 0.76% on July 20.
Coleman purchased 249,968 shares for an average price of $27.68 per share, impacting the portfolio by 0.07%. The initial stake of 13.06 million shares was established in March. Since then, he has consistently added to the position. He now holds a total 33.14 million shares, which represents 8.15% of the company’s total outstanding shares and is 9.2% of his total assets managed. As of the end of the first quarter, Apollo Global was Coleman’s fourth-largest holding.
The asset management company has a market cap of $11.35 billion; its shares were trading around $27.93 on Monday with a price-earnings (P/E) ratio of 9.22, a price-book (P/B) ratio of 12.34 and a price-sales (P/S) ratio of 2.07.
According to the Peter Lynch chart below, the stock is trading below its fair value.
GuruFocus ranked Apollo’s financial strength 6 of 10. Its high Piotroski F-Score of 7 and Altman Z-Score of 3.13 indicate the company has a strong financial position. Its return on invested capital (ROIC) also outperforms its weighted average cost of capital (WACC), suggesting the company is creating value as it grows.
The company’s profitability and growth was ranked 8 of 10 by GuruFocus. It has an operating margin of 45.05% and a net margin of 23.3%. The return on equity (ROE) and return on assets (ROA) outperform 99% and 74% of other companies in the industry. Likewise, the return on capital (ROC) outperforms 92% of competitors.
The company pays a quarterly dividend with a 47% payout ratio. The trailing dividend yield is 5.9% and the forward dividend yield is 7.02%. Over the past five years, the company has grown its dividend at a rate of 45.9% per year.
Coleman is the company’s largest shareholder. Other gurus who own the stock are Jim Simons (Trades, Portfolio), Chuck Royce (Trades, Portfolio), Tom Gayner (Trades, Portfolio) and Richard Pzena (Trades, Portfolio).
A student of legendary investor Julian Robertson (Trades, Portfolio), Coleman’s portfolio is largely composed of consumer cyclical and technology stocks. His current portfolio of 41 stocks is valued at $9.9 billion.
The financial services sector has a weighting of 8% in the guru’s portfolio. Other financial stocks Coleman owns include Mastercard Inc. (MA, Financial), Visa (V, Financial), LendingClub Corp. (LC, Financial) and On Deck Capital Inc. (ONDK, Financial).
Disclosure: I do not own any stocks mentioned in the article.
