Tiger Global Posts 17% Gain; Likes Chinese Internet Stocks

Tiger Global Management LLC said its onshore hedge fund wrapped up 2014 with a 16.9 percent return.

In a letter to investors, the firm said themes contributing to the success of its $16 billion fund included consumer Internet, pay TV and payment processing stocks.

Among the fund's winning holdings: China online discount apparel retailer Vipshop Holdings Ltd VIPS, South African-based media concern Naspers Ltd. NPSNY and FleetCor Technologies, Inc. FLT, which provides fuel cards to commercial fleet operators.

The fund also benefited from Alibaba Group Holding Ltd BABA's first three months of trading, with shares acquired when the company was private.

In e-commerce and online classifieds, Tiger said its largest current holding is Autohome Inc. ATHM in China. "Autohome is already profitable and we believe earnings can compound at high rates for the foreseeable future," the firm explained.

Although Tiger likes China for Internet companies' potential growth, it also sees opportunity in consolidating high-speed Internet providers closer to home.

John Malone, as well as Patrick Drahi, "represent two of the most capable capital consolidators in the industry," the letter said.

Malone operates Charter Communications Inc. CHTR in the U.S. and Liberty Global plc LBTYA in Europe, while Drahi operates Altice SA ATCEY and Numericable SFR NUMCF.