Tiger Global Management, Maverick Capital and other so-called Tiger Cubs trimmed their holdings in technology stocks during the second quarter, taking a different tack than other large money managers who loaded up on the sector.
Chase Coleman’s Tiger Global and Lee Ainslie’s Maverick shrank their tech stakes by 5,2% and 3.5%, respectively, while Steve Mandel’s Lone Pine Capital cut its positions by 2.4%. Philippe Laffont’s Coatue Management, a long-time tech bull, reduced its stakes in some of its biggest holdings, including Nvidia Corp., Meta Platforms Inc., Tesla Inc. and Netflix Inc. Tiger Cubs are so-called because their founders are alumni of Julian Robertson’s Tiger Management.
The shift may be an effort to rebalance portfolios or lock in profits after tech shares surged in the second quarter. The tech-heavy Nasdaq 100 climbed 15% in the period.
Rival hedge funds, endowments, family offices and other institutional investors, meanwhile, boosted their exposure to tech more than any other sector, according to a Bloomberg analysis of quarterly regulatory filings Monday. Tech stocks accounted for almost a quarter of the equity market value exposure of more than 5,800 asset managers at midyear, an increase of 1.5% from the end of the first quarter.
Rokos Capital Management bought more than $2.7 billion shares of the Invesco QQQ Trust, which tracks the performance of the Nasdaq 100. Whale Rock Capital Management increased its tech exposure by 5%, while Third Point LLC’s rose by 7.9%, adding a sizable stake in Amazon.com Inc.
Read More: Rokos Hedge Fund Bet Billions on Tech in the Second Quarter
Viking Global Investors, another Tiger Cub, boosted its tech allocation by 3.2%, adding to its position in Microsoft and taking new stakes in Nvidia and Datadog Inc. Coatue more than doubled its Amazon holding and increased the number of Microsoft shares it owns by 68%.
Monday was the deadline for thousands of institutional investors, including hedge funds, pension funds and endowments, to report certain US equity holdings to the Securities and Exchange Commission through quarterly 13F filings.
Other highlights:
- D1 Capital Partners, which doesn’t typically wager on real estate, increased its exposure to the sector by 14%, betting on apartment real estate investment trusts
- Tiger Global ramped up its stake in buyout giant Apollo Global Management Inc. by more than 300%. It held 12.3 million shares at the end of the of the second quarter, which is still far fewer than it has held historically
- Michael Burry’s Scion Asset Management ditched its stakes in Alibaba Group Holding Ltd. and JD.com Inc., betting instead on Expedia Group Inc., which became the hedge fund’s biggest position
--With assistance from Natalie Wong.