Lone Pine Capital, established in 1997 by Stephen Mandel, is a leading hedge fund and investment advisory firm based in Greenwich, Connecticut. The firm also operates offices in major financial hubs, including London, New York City, and San Francisco. Over the years, Lone Pine Capital has built a strong reputation in the investment world, focusing on long-term growth strategies. The firm’s disciplined approach to stock selection and asset management has enabled it to maintain a significant presence in the hedge fund industry.
Stephen Mandel, the founder of the firm, has had an extensive career in finance even before launching Lone Pine Capital. He previously worked as a managing director at Tiger Management, gaining valuable experience in investment strategy. A graduate of Dartmouth College with a degree in government, Mandel later earned an MBA from Harvard University. His expertise and leadership led to his ranking in the highest-earning categories among Forbes’ top hedge fund managers multiple times between 2012 and 2018. Although Mandel stepped away from active investment management in 2019, he continues to serve as a managing director at the firm. As of Q4 2024, Lone Pine Capital managed nearly $13.5 billion in 13F securities spread across 30 companies, with its top 10 holdings accounting for 55.89% of its portfolio.
Lone Pine Capital’s investment philosophy is rooted in identifying transformative changes that can unlock or accelerate value. By leveraging institutional knowledge and deep expertise across sectors and global markets, the firm continuously reassesses its investment theses and uncovers new opportunities. It strategically times market entry by recognizing key turning points in economic and industry cycles, allowing it to capitalize on shifts before they become widely apparent. The firm also prioritizes long-term value creation, typically holding investments for two to three years, though it has held stocks of certain companies for decades. This disciplined approach aligns investment timelines with investor expectations, optimizing returns. Additionally, Lone Pine Capital remains highly responsive to innovation in various forms—whether through technological advancements, business model evolution, or leadership changes—adapting its strategies based on emerging data and shifting market dynamics.
Moreover, the hedge fund's investment strategies are designed to achieve long-term capital appreciation through a disciplined and research-driven approach. For its long-only strategy, the firm focuses on high-conviction investments in companies with strong growth potential, maintaining a diversified portfolio primarily across North America and Europe while limiting exposure to emerging markets. Its long/short equity strategy follows a similar approach, combining concentrated long positions with a diversified selection of short investments to navigate market fluctuations effectively. Net exposure varies based on market conditions and available opportunities, ensuring flexibility in positioning. In private investments, the firm applies its extensive research capabilities to identify promising companies in sectors such as software, financial technology, healthcare, and consumer markets. By targeting capital-efficient businesses with significant public market potential, Lone Pine Capital seeks to maximize returns through selective, high-impact investments.
Our Methodology
The stocks discussed below were picked from Lone Pine Capital’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from 1008 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Intuit Inc. (INTU) The Best Stock To Buy For Financial Stability?
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A global leader in financial software solutions, Intuit Inc. (NASDAQ:INTU) is headquartered in Mountain View, California, and led by CEO Sasan Goodarzi. The company’s stock surged 5% following its fiscal Q2 2025 earnings report, which exceeded Wall Street expectations across all key metrics. The company, known for products like TurboTax, QuickBooks, and Credit Karma, posted earnings per share (EPS) of $3.32, surpassing analyst estimates of $2.58. Its revenue reached $3.96 billion, beating projections of $3.83 billion and reflecting a 17% year-over-year increase. Management highlighted the company’s growing use of artificial intelligence (AI) to enhance customer experience and efficiency, with CFO Sandeep Aujla expressing confidence in delivering double-digit revenue growth and improved margins for the year. Additionally, the company's board approved a quarterly dividend of $1.04 per share, a 16% increase from the previous year, payable on April 18, 2025.
For fiscal year 2025, Intuit Inc. (NASDAQ:INTU) reaffirmed its optimistic outlook, expecting revenue between $18.16 billion and $18.35 billion, reflecting 12-13% growth. The company’s operating income is projected to grow 28-30%, while its diluted EPS is forecasted at $19.16 to $19.36, a 13-14% increase. It also provided guidance for Q3 2025, expecting revenue between $7.55 billion and $7.60 billion, with EPS ranging from $10.89 to $10.95. These strong forecasts reinforce the company's continued growth trajectory, fueled by its AI-driven platform and strategic focus on financial technology innovation.
As of Q4 2024, Lone Pine Capital significantly increased its holdings in Intuit Inc. (NASDAQ:INTU) to over 1.15 million shares, marking a 26% rise from 921,361 shares in Q3. The fund’s stake in the company is now valued at approximately $727 million. Insider Monkey’s database indicated that 89 hedge funds held stakes in the company at the end of Q4 2024, with a value of nearly $11.28 billion, as opposed to 87 funds in Q3.
Overall INTU ranks 6th on our list of the stocks to buy according to Lone Pine Capital. While we acknowledge the potential for INTU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
