Lee Ainslee’s Q1 Stocks: Facebook Inc (FB) and Chipotle Mexican Grill, Inc. (CMG)

By Shira Gonen

Lee S. Ainslie, is the current head of the hedge fund Maverick Capital. Invited by the billionaire Sam Wyly, Ainslie helped start the fund in 1993. He is also a well known for supporting charitable causes and is currently serving on the board of directors of the Robin Hood Foundation, a charity focused on alleviating poverty and providing disaster relief. Maverick Capital is currently valued at $6.32 billion. The hedge fund had a rough quarter, generating a (3.15%) loss for investors. However, in the last 3 years the fund increased its value by 15.3%. Let’s take a look at Ainslee’s Q1 activity in Facebook Inc (NASDAQ:FB) and Chipotle Mexican Grill, Inc. (NYSE:CMG).

lee ainslee q1

Ainslie can be viewed as a value investor, also having a particular love for investments in the technology sector, which make up 34% of his total holdings. He is also a firm believer in the bottom-up fundamental approach, focusing relentlessly on performance.

lee ainslee portfolio breakdown

To further expand its value, Maverick Capital exponentially increased its holdings in the social media giant Facebook by a massive 63, 755.12%, now owning $182.15 million of the social media giant. With the company set to surpass advertising revenue expectations, Facebook easily beat the share growth projections for the first quarter and the stage has been set for continued growth. In the first quarter, the company made headlines in its F8 developer conference which revealed a new messenger bot as well as for further monetization opportunities.

According to TipRanks’ statistics, hedge funds increased holdings in Facebook by an average of 4.6 million shares in the last quarter.

Another movement in the financial holdings of Ainslie’s company had been the complete sell off of its stake in the Chipotle Mexican Grill fast food chain. Shares in this company had been on a steady decline since October 2015, and Maverick Capital could not risk any more financial losses, especially after the chain had two E. coli bacteria outbreaks which affected a total of 60 people. Many of the affected persons were hospitalized and the news spread like wildfire. Most of Chipotle’s other investors also started backing out in fear of media attention driving down the share price. The stock is currently down 33% y/y.

Despite a 33% y/y drop in the stock, hedge funds increased holdings in the Mexican fast food company by an average of 310,700 shares in the first quarter according to TipRanks.