Chase Coleman Empowers Qualtrics Holding

According to Real-Time Picks, a Premium feature of GuruFocus,

Chase Coleman (Trades, Portfolio)’s Tiger Global Management added to its holding in Qualtrics International Inc. (XM, Financial) recently.

Real-Time Picks shows that the guru bought 1,833,886 shares of Qualtrics on Nov. 29, increasing the position by 28.92% for a total holding of 8,175,580 shares. This isn’t the first time Coleman has reported an increase in share count this quarter; on Nov. 5, the guru increased the holding by 2,380,952 shares, or 60.11%.

Tiger Global Management first acquired common shares of Qualtrics when the company went public in the first quarter of 2021.

About Qualtrics

Qualtrics is an experience management software company headquartered in Seattle. Its products allow companies to analyze and act on insights into customer, product, brand, employee, design and core experiences.

The company gleans its insights primarily from surveys. It provides a cloud-based platform for creating and distributing web-based surveys, and then it provides analytical data to customers based on the survey results. Qualtrics’ analytical tools help businesses to design the experiences that their customers want, which helps increase sales.

Expanding operations

Qualtrics is a global company that is growing fast, at least in terms of its top line. However, in terms of earnings per share, the company’s profitability has steadily dropped off since 2019.

The company claims its loss of profitability has come about due to a focus on growth. It has been expanding its global footprint, with the most recent growth announcement coming in the form of a Dec. 9 note that the company will invest $15.9 million in a new office in Reston, Virginia. The new location is expected to come with 400 new job openings.

“Virginia offers access to the highest concentration of tech talent in the United States,” Virginia Governor Ralph Northam said in a statement. “The commonwealth’s diverse tech ecosystem is driven by our stable business climate, competitive operating costs, and a world-class workforce. We look forward to Qualtrics’ continued success in Fairfax County.”

Portfolio overview

As per the most recent SEC filings, Tiger Global Management’s equity portfolio consisted of 161 stocks valued at a total of $52.06 billion.

Alongside Qualtrics, some of the firm’s other software holdings include Microsoft Corp. (MSFT), which is its largest holding with a 7.11% portfolio weight, as well as electronic payments processor Square Inc. (SQ) and creative software company Adobe Inc. (ADBE).

Coleman’s firm has allocated more than 50% of its portfolio to tech stocks, as shown in the below chart. Most of its tech investments are in the software industry. The firm has also allocated significant chunks of its portfolio to consumer cyclical stocks and communication services stocks.