Steve Mandel's Lone Pine Capital Raises Lululemon (LULU) Stake ~ market folly

Wednesday, April 17, 2013

Steve Mandel's Lone Pine Capital Raises Lululemon (LULU) Stake

Steve Mandel's hedge fund firm Lone Pine Capital has filed a 13G with the SEC regarding shares of Lululemon Athletica (LULU).  Per the filing, Lone Pine has disclosed a 5.01% ownership stake in LULU with 5,632,431 shares.  This marks almost a 17% increase in their position size since the end of 2012. 

The 13G was required due to portfolio activity on April 5th.  Recently, Lululemon has seen a bit of controversy as customers were complaining about yoga pants that were too-sheer (i.e. they were see-through or somewhat transparent).  Shares dropped from $70 down to as low as $61.60 on the news but have since rebounded back to $70.  It's likely Lone Pine was buying somewhere in this sell-off.

Steve Mandel was recently listed as one of the top 10 highest paid hedge fund managers of 2012.

Per Google Finance, Lululemon Athletica "manufactures, distributes and sells technical athletics and yoga apparel."

For more on this hedge fund, we've highlighted some of Lone Pine's other portfolio activity.

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