| Main |
| 15. (tied) Stephen Mandel Jr. / $450 million | ||
| Title: Founder and portfolio manager Firm: Lone Pine Capital (Greenwich, Connecticut) Age: 58 2013 Rank: No. 16 (tied) 2013 Earnings: $450 million 2012 Rank: No. 7 2012 Earnings: $580 million Years on list: 7 | Source of BA in government, Dartmouth College, 1978 | |
Stephen Mandel Jr., one of the most famous of the Tiger Cubs who worked at Julian Robertson Jr.’s Tiger Management Corp., is a reluctant short-seller. In his third-quarter letter to investors last year, Mandel conceded that it is in general “inherently difficult” to short — because of a crowded playing field, high correlation among stocks, lack of short rebate (income that can be earned by shorting a stock) and the absence of irrational exuberance creating concrete bubbles — and that “opportunities to make significant money shorting stocks are sporadic and infrequent.” But Mandel assured investors that shorting individual stocks remains an active part of the firm’s business because the payoff can be so sweet. “We are poised with our pin for the next bubble,” he wrote. Still, the commitment to shorting cost Lone Pine last year. Lone Cypress, one of Mandel’s main hedge funds, gained about 18 percent, net of the management fee but not the performance fee, while his long-only Lone Cascade fund rose 32 percent. Lone Pine’s biggest winners were FleetCor Technologies, MasterCard, Michael Kors Holdings, 21st Century Fox, Valeant Pharmaceuticals International and Visa. Overseas, Lone Pine racked up big gains from Hong Kong–based Esprit Holdings, China-based Baidu and U.K.-based Rolls-Royce Holdings and Liberty Global. Mandel made some bold moves at Greenwich, Connecticut–based Lone Pine Capital in 2013. He launched his first new hedge fund in a decade: Lone Tamarack, a long-short equity fund that focuses on the most-liquid stocks in the firm’s portfolios. He also merged his two main long-only equity funds, Lone Cascade and Lone Dragon Pine, because of a lack of investment opportunities in one of the strategies.
| Main |
