META - Tracking Philippe Laffont's Coatue Management Portfolio - Q1 2023 Update

2023-06-14 02:40:41 ET

Summary

• Philippe Laffont’s 13F portfolio value increased from $8.92B to $15.04B this quarter.
• They added Taiwan Semi and increased Meta Platforms, Netflix, and Alphabet, while reducing Alibaba Group Holdings, Rivian Automotive, and JD.com.
• Their top three positions are Meta Platforms, Nvidia, and Tesla, and they add up to ~27% of the entire portfolio.

This article is part of a series that provides an ongoing analysis of the changes made to Coatue Management’s 13F stock portfolio on a quarterly basis. It is based on Coatue’s regulatory 13F Form filed on 5/15/2023. The 13F portfolio value increased ~70% from ~$8.92B to $15.04B this quarter. Recent 13F reports have shown around 75 individual stock positions in the portfolio. The largest five stakes are Meta Platforms, Nvidia, Tesla, Moderna, and Netflix. They add up to ~40% of the entire portfolio. Please visit our Tracking Philippe Laffont’s Coatue Portfolio series to get an idea of their investment philosophy and our previous update for the fund’s moves during Q4 2022.

Philippe Laffont was a telecom analyst at Tiger Management from 1996. He founded Coatue Management as a tech-focused long-short hedge fund in 1999 and is one of the most successful among the "tiger cubs". To know more about Julian Robertson and his legendary Tiger Management, check out Julian Robertson: A Tiger in the Land of Bulls and Bears .

New Stakes:

Taiwan Semi (TSM), UnitedHealth Group (UNH), and First Citizens BancShares (FCNCA): TSM is a 3.65% of the portfolio position established this quarter at prices between ~$74 and ~$98 and the stock currently trades well above that range at ~$107. The 1.60% UNH stake was purchased at prices between ~$460 and ~$519 and it now goes for ~$491. FCNCA is a small 0.84% of the portfolio position purchased at prices between ~$509 and ~$973 and it now goes for ~$1305.

Stake Disposals:

GitLab Inc. (GTLB): GitLab had an IPO in October 2021. Shares started trading at ~$104 and currently go for $50.68. Coatue’s stake was from a Series E funding round when the valuation was ~$2.75B. The current valuation is ~$6.6B. There was a ~18% trimming in Q1 2022. The disposal this quarter was at prices between ~$33 and ~$59.

Note: They had a ~11% ownership stake in GitLab as of last quarter.

BioNTech SE (BNTX), Bath & Body Works ( BBWI ) previously L Brands, Broadcom Ltd. (AVGO), Equifax Inc. (EFX), and Okta Inc. (OKTA): These small (less than ~2% of the portfolio each) stakes were disposed this quarter.

Stake Increases:

Meta Platforms ( META ) previously Facebook : META is currently the largest position at 11.36% of the portfolio. It was first purchased during Q3 2013 at prices between ~$24 and ~$51. The stake has wavered. Recent activity follows. There was a one-third stake increase in Q2 2021 at prices between ~$295 and ~$356. Next quarter saw a ~15% selling while Q1 2022 there was a similar increase. There was a ~50% reduction in the two quarters through Q3 2022 at prices between ~$134 and ~$232. The last two quarters saw a huge ~480% stake build-up at prices between ~$89 and ~$212. The stock currently trades at ~$271.

Nvidia Corp (NVDA): NVDA is now a large (top three) 9.20% of the portfolio position. Q4 2021 had seen a ~200% stake increase at prices between ~$197 and ~$334. H1 2022 saw the stake almost eliminated at prices between ~$145 and ~$301. The position was rebuilt during the two quarters through Q3 2022 at prices between ~$112 and ~$192. The stock is now at ~$410. There was a ~7% increase this quarter.

Tesla Inc. ( TSLA ) : TSLA is currently the third largest position at 6.69% of the portfolio. It was purchased in Q1 2020 at prices between ~$28 and ~$60. Next quarter saw a ~40% selling at prices between ~$32 and ~$67. There was a stake doubling in Q3 2020 at prices between ~$81 and ~$148. The two quarters through Q1 2021 had seen a ~50% selling at prices between ~$130 and ~$293. There was one-third selling in Q3 2021 at prices between ~$214 and ~$264 while next quarter saw a similar increase at prices between ~$258 and ~$410. There was a ~17% reduction during Q3 2022 at prices between ~$227 and ~$309. The last two quarters saw a ~37% increase at prices between ~$108 and ~$309. The stock currently trades at ~$259.

Moderna (MRNA): A small MRNA stake was purchased in Q1 2021 at prices between ~$109 and ~$186. There was a ~400% stake increase in the next quarter at prices between ~$130 and ~$235. Q4 2021 saw a ~30% reduction at prices between ~$226 and ~$369 while the next quarter there was a ~60% stake increase at prices between ~$127 and ~$235. The last quarter also saw a ~12% increase. The stock currently trades at ~$128 and the stake is at 6.58% of the portfolio. There was a minor ~2% increase this quarter.

Netflix Inc. ( NFLX ) : The 6.27% NFLX position is a very long term stake. It was established in 2012 at very low prices. The stake has wavered. H1 2018 saw a ~40% selling at prices between ~$210 and ~$410 while in Q1 2022 there was a ~55% stake increase at prices between ~$331 and ~$597. There was a stake doubling this quarter at prices between ~$293 and ~$368. The stock is now at ~$436.

Microsoft Corporation (MSFT): MSFT is a ~6% of the portfolio stake purchased in Q3 2021 at prices between ~$277 and ~$305. There was a ~90% stake increase in the next quarter at prices between ~$283 and ~$343. The two quarters through Q3 2022 saw a ~77% reduction at prices between ~$233 and ~$315. The last quarter saw the position rebuilt at prices between ~$214 and ~$257. That was followed with a stake doubling this quarter at prices between ~$222 and ~$288. The stock currently trades at ~$334.

Advanced Micro Devices (AMD): The 5.54% AMD stake saw a ~50% increase this quarter at prices between ~$62 and ~$100. The stock currently trades at ~$125.

Block Inc. ( SQ ) previously Square : SQ is a 4.51% of the portfolio position first purchased in Q2 & Q3 2019 at prices between ~$62 and ~$82. The position has wavered. Recent activity follows. H2 2021 had seen a ~40% reduction at prices between ~$158 and ~$282. The stake was rebuilt the next quarter at prices between ~$89 and ~$164. There was a ~85% increase this quarter at prices between ~$61 and ~$88. The stock currently trades at $65.52.

Alphabet Inc. (GOOG): The 4.29% GOOG stake was primarily built this quarter at prices between ~$87 and ~$109. The stock currently trades at $124.

Adobe Systems (ADBE): The ~4% ADBE stake was purchased during the last three quarters at prices between ~$275 and ~$451 and it now goes for ~$479.

Amazon.com ( AMZN ) : A large stake in AMZN was built in the 2009-2011 timeframe but was sold down the next year. A similar stake build-up happened in H2 2013 at prices between ~$13 and ~$14. Next quarter saw a ~80% reduction at prices between ~$14 and ~$16. The stake has wavered. Recent activity follows. Q4 2021 saw a ~24% stake increase at prices between ~$155 and ~$185 while the next quarter there was a ~45% selling at prices between ~$136 and ~$170. Q2 2022 saw a one-third increase while in the next quarter there was a ~22% reduction. The last quarter saw a ~50% stake increase at prices between ~$82 and ~$121. The stock is now at ~$127 and it is now at 3.80% of the portfolio. This quarter also saw a ~13% increase.

Lam Research (LRCX): LRCX is a 2.92% of the portfolio position established during Q3 2022 at prices between ~$366 and ~$532 and the stock currently trades at ~$626. There was a ~72% stake increase this quarter at prices between ~$414 and ~$541.

Walt Disney ( DIS ) : A huge position in DIS was built in Q2 2020 at prices between ~$94 and ~$125. The next two quarters also saw minor increases. Q1 2021 saw a ~45% selling at prices between ~$163 and ~$202. There was another similar reduction in Q1 2022 at prices between ~$129 and ~$158. The last quarter saw the position almost sold out at prices between ~$84 and ~$107. This quarter saw a ~2% of the portfolio stake built at prices between ~$89 and ~$113. The stock currently trades at ~$94.

Uber Technologies ( UBER ) : UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently goes for $41.41. Coatue’s stake goes back to a funding round in 2018 when the valuation was ~$60B. This is compared to the current market cap of ~$49B. Q4 2019 & Q1 2020 saw the stake sold down by ~90% at prices between ~$21 and ~$41. The stake was rebuilt in the Q2 to Q4 2020 time period at prices between ~$23 and ~$55. Q1 2021 saw a roughly one-third selling at prices between ~$48 and ~$63. That was followed with a ~55% reduction in Q4 2021 at prices between ~$36 and ~$48. The stake was rebuilt during the three quarters through Q3 2022 at prices between ~$20.50 and ~$45. The last quarter saw the position sold down by ~80% at prices between ~$24.40 and ~$31.60 while this quarter saw a similar increase at prices between ~$25 and ~$37. The stake is now at 1.27% of the portfolio.

Applied Materials (AMAT), Charter Communications (CHTR), CrowdStrike Holdings (CRWD), DocuSign Inc. (DOCU), Intuit Inc. (INTU), NXP Semi (NXPI), PDD Holdings (PDD), and UiPath Inc. (PATH): These small (less than ~1% of the portfolio each) stakes were increased during the quarter.

Stake Decreases:

Endeavor Group Holdings (EDR): Endeavor Group Holdings had an IPO in April 2021. Shares started trading at ~$25 and currently go for $22.40. Coatue’s 3.58% of the portfolio stake was through a private placement prior to the IPO. There was a ~17% selling in Q3 2021 at prices between ~$23 and ~$29. That was followed with a ~18% reduction over the next two quarters at prices between ~$18 and ~$35. The last four quarters saw another ~45% selling at prices between ~$19 and ~$26.

Alibaba Group Holdings (BABA): BABA is now a small ~1% of the portfolio stake. A large stake was established last quarter at prices between ~$63 and ~$94 but was sold down by ~70% this quarter at prices between ~$81 and ~$121. The stock currently trades at $87.51.

Enphase Energy (ENPH): ENPH is a ~1% of the portfolio stake primarily built during Q2 2022 at prices between ~$138 and ~$216. This quarter saw a ~37% selling at prices between ~$184 and ~$253. The stock currently trades at ~$180.

DoorDash (DASH), JD.com (JD), KE Holdings (KE), Pinterest Inc. (PINS), Peloton Interactive (PTON), PayPal Holdings (PYPL), Rivian Automotive (RIVN), Snowflake Inc. (SNOW), Sea Limited (SE), and Zillow Group (Z): These small (less than ~1% of the portfolio each) stakes were reduced this quarter.

Below is a spreadsheet that shows the changes to Philippe Laffont's Coatue Management 13F long portfolio holdings as of Q1 2023:

Source: John Vincent. Data constructed from Coatue Management’s 13F filings for Q4 2022 and Q1 2023.

For further details see: