$19 billion hedge fund manager Lone Pine Capital categorizes companies as young disruptors, disrupted, or "compounders" when deciding whether to go long or short. Young disruptors include recently IPO-ed companies that require a "high degree of creativity" to value them, Lone Pine Capital said in an investor letter seen by Business Insider. "Compounders" — companies that Lone Pine considers undervalued — include World Wrestling Entertainment, Nintendo, and Tiffany & Co.
Lone Cypress and Lone Cascade, the firm's long-short fund and long-only fund, are both up around 24% for the year.