Lone Pine Capital LLC is an investment management firm with more than $30 billion in assets under management (AUM). It manages a total of 10 funds - or pooled investment vehicles - and currently employs 14 advisors. It does not manage any funds other than hedge funds.
It's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible to accredited investors. If you're looking for trusted and comprehensive support in managing your own finances, consider speaking to a professional financial advisor.
Lone Pine Capital Background
Lone Pine Capital LLC was founded in June 1997 by Stephen Mandel, who previously served as a senior managing director at Tiger Management and an analyst at Goldman Sachs before that. As of Jan. 2019, Mandel stepped down from his fund manager position but remains managing director of Lone Pine Capital. He has also served on the national board of directors at Teach for America.
Lone Pine Capital LLC was named after a pine tree at Dartmouth College that was said to have survived a lightning strike that occurred in 1887. Its headquarters are located in Greenwich, Connecticut, and additional research offices are in London, San Francisco and New York City.
The firm's clients are the Lone Pine Capital Funds to which the firm provides investment advice. Investors in these funds include but are not limited to high-net-worth individuals, corporations, trusts, charitable institutions, foundations, endowments, funds of funds and other U.S. and international institutional investors.
Lone Pine Capital Investment Philosophy
According to its webpage, the Lone Pine Capital team strongly believes in integrating relevant environmental, social and governance (ESG) factors into their research process, as it may be useful when evaluating investment risks.
Lone Pine Capital currently provides investment advisory services to the Cypress Funds, the Cascade Funds and the Juniper Fund. Lone Pine Associates LLC serves as the general partner to each of Redwood, Spruce and Juniper and as the manager to Cedar Intermediate. Lone Pine Members LLC serves as the general partner to each of Cascade and Sierra as well as the manager to Monterey Master Fund.
With regards to investment strategies at Lone Pine Capital specifically, they vary by fund. For the Cypress and Cascade Funds, strategies are largely driven by fundamental analysis, which measures a stock's value based on specific metrics that affect it. The firm describes this as "bottom-up research" and it involves things like meeting with company management, speaking with customers and suppliers, consulting with industry experts and reading publicly available information and filings.
For the Juniper Funds, the firm has a Juniper Due Diligence Team, comprised of Lone Pine Capital professionals, that performs a thorough review of each Juniper manager's investment process and track record. Factors for evaluation can include but are not limited to investment style and philosophy, commitment to compliance, integrity of the manager's team, historical performance and portfolio liquidity.
Largest Hedge Funds Managed by Lone Pine Capital
Lone Cypress, Ltd.
- AUM: $13,741,665,300
- Minimum: $1 million
- Beneficial Owners: 2
Lone Cascade, LP
- AUM: $13,582,160,200
- Minimum: $1 million
- Beneficial Owners: 630
Lone Redwood, LP
- AUM: $5,974,618,600
- Minimum: $1 million
- Beneficial Owners: 414
Lone Cedar Intermediate Fund, Ltd.
- AUM: $3,470,917,000
- Minimum: $1 million
- Beneficial Owners: 2
Lone Cedar, Ltd.
- AUM: $3,367,611,600
- Minimum: $1 million
- Beneficial Owners: 143
Fees at Lone Pine Capital
Fees are charged by the firm to the fund, not to the clients directly. Most funds at Lone Pine Capital (currently all except the Juniper Fund) pay a performance-based fee based on net capital appreciation, or net increase in value of assets.
Additionally, each Lone Pine Capital Fund pays the firm a fixed asset-based management fee monthly in advance. Management fees at the firm are generally based on a percentage of the net value of assets under management of each class of shares that an investor holds. Management fees for the Cypress Funds are generally about 1% per year. Management fees for the Cascade Funds range from 1% to 2% per year.
Additional fees and expenses may apply - including but not limited to registration fees, maintenance fees, certain taxes and regulatory expenses - so it is imperative that potential clients reach out about specific fees charged to their fund.
What to Watch Out For
Again, it's important to understand that hedge funds are often complex, loosely regulated investments and therefore accessible only to accredited investors, who, along with sophisticated investors, are allowed by the SEC to buy securities like these. These two groups of investors differ from retail investors or individual investors, who might be taking a more DIY approach or enlisting the services of a financial advisor.
Within the past 10 years, Lone Pine Capital has not undergone any disciplinary or legal action deemed material to a client’s evaluation of its business integrity. That said, as an SEC-registered investment manager, the firm is legally obligated to uphold its fiduciary duty and work in clients’ best interests at all times. You can view its latest Form ADV on the official website of the Securities & Exchange Commission (SEC).
Becoming a Client of Lone Pine Capital
If you are an accredited investor and wish to become a client of Lone Pine Capital, you can visit its website or call (203) 618-1400.
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