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Lone Pine's Steve Mandel Advances to 5% Ownership of TripAdvisor

By: GuruFocus
Posted: 12/26/2012 7:40:00 PM
Referenced Stocks: EXPE;GRPN;LINTA;TRIP;YELP

Steve Mandel , founder of hedge fund, Lone Pine Capital, has increased his holding of travel reviews site, TripAdvisor Inc. ( TRIP ) by almost 776,000 shares. The transaction turned his previous ownership of 4.4 percent shares outstanding to a full-fledged 5 percent.

Mandel originally purchased the stock in the first quarter of this year, starting off with about 1.9 million shares, and then selling out of the stock in the following quarter, when the stock surged almost $10. Mandel welcomed back the stock to his portfolio in the third quarter, purchasing 5.7 million shares at the average price of $38.

Today, in a 13G filing to the SEC, Mandel has reported to owning a total of 6,523,653 shares of TripAdvisor. The stock is trading at $41.85, and is down 0.92 percent for this afternoon's post-Christmas trading.

TRIP data by GuruFocus.com

In the beginning of the month, TripAdvisor announced that digital commerce businesses operator, Liberty Interactive Corp. (LINTA, LINTB, LVNTA, LVNTB) has acquired about 4.8 million shares of its common stock, once owned by former TripAdvisor chairman, Barry Diller. This was Diller's first time making a trade of his personally owned TripAdvisor shares.

As the new majority stake holder of TripAdvisor, Liberty now takes reign over Diller's once-held voting power. Although Diller is no longer serving as the chairman of the company's board of directors, he still upholds a director title.

"My only reason for resigning as chairman and disposing of my interests is that I have more obligations than time and transferring control of TripAdvisor to Liberty is something I'm very comfortable with," Diller said in a release announcing the new takeover news. "Liberty has proven itself a fine steward and leader of its controlled businesses."

Out of all the investors that GuruFocus follows, Mandel owns the second largest amount of shares next to Andreas Halvorsen.

Having gone up by 65.59 percent in market value this year, below is TripAdvisor's comparison with three other competitors: Yelp Inc. ( YELP ), Groupon Inc. ( GRPN ) and Expedia Inc. ( EXPE ).

TRIP data by GuruFocus.com

View the rest of Mandel's latest trades at Steve Mandel's Stock Picks. Also read more on related topics in our GuruFocus archivesAbout GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .