ETN - Tracking Philippe Laffont's Coatue Management Portfolio - Q2 2023 Update

2023-09-14 06:23:50 ET

Summary

• Coatue Management's 13F portfolio value increased by 35% to $20.41B in Q2 2023.
• The largest five stakes in the portfolio are Nvidia, Microsoft, Meta Platforms, Amazon, and Advanced Micro Devices.
• New stakes include Oracle, Equinix, Eaton, and Ulta Beauty, among others.

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 8/14/2023. The 13F portfolio value increased ~35% from $15.04B to $20.41B this quarter. Recent 13F reports have shown around 75 individual stock positions in the portfolio. The largest five stakes are Nvidia, Microsoft, Meta Platforms, Amazon.com, and Advanced Micro Devices. They add up to ~41% 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 Tracking Philippe Laffont's Coatue Management Portfolio - Q1 2023 Update for the fund’s moves during Q1 2023.

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:

Oracle Corp. ( ORCL ), Equinix Inc. ( EQIX ), Eaton Corp. ( ETN ), and Ulta Beauty ( ULTA ): ORCL is a 2.55% of the portfolio position purchased this quarter at prices between ~$93 and ~$127 and the stock currently trades at ~$112. The 1.86% EQIX stake was established at prices between ~$675 and ~$784 and it now goes for ~$769. ETN is a 1.75% of the portfolio position purchased this quarter at prices between ~$156 and ~$201 and it is now at ~$221. ULTA is a small ~1% stake established at prices between ~$404 and ~$551 and the stock currently trades at ~$414.

Danaher Corp. ( DHR ), Albemarle Corp. ( ALB ), and Vertiv Holdings ( VRT ): These are very small (less than ~1% of the portfolio each) new stakes established during the quarter.

Stake Increases:

Microsoft Corporation ( MSFT ): MSFT is a large (top three) ~9% 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 three quarters saw the position rebuilt at prices between ~$214 and ~$348. The stock currently trades at ~$336.

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. The last three quarters saw a huge stake build-up at prices between ~$82 and ~$130. The stock is now at ~$145 and it is now a large (top five) stake at ~8% of the portfolio.

Advanced Micro Devices ( AMD ): The 7.80% AMD stake saw a ~50% increase last quarter at prices between ~$62 and ~$100. That was followed by a two-thirds further increase this quarter at prices between ~$82 and ~$129. The stock currently trades at ~$108.

Taiwan Semi ( TSM ), UnitedHealth Group ( UNH ), and First Citizens BancShares ( FCNCA ): TSM is a 3.34% of the portfolio position established last quarter at prices between ~$74 and ~$98 and the stock currently trades at ~$91. There was a ~15% stake increase this quarter. The 1.49% UNH stake was purchased last quarter at prices between ~$460 and ~$519 and it now goes for ~$480. There was a ~25% stake increase this quarter. FCNCA is a ~2% of the portfolio position purchased last quarter at prices between ~$509 and ~$973 and it now goes for ~$1345. There was a ~150% stake increase this quarter at prices between ~$958 and ~$1321.

Uber Technologies ( UBER ) : UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently go for $48.16. 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 ~$98B. The stake has wavered. Recent activity follows. Q4 2022 saw the position sold down by ~80% at prices between ~$24.40 and ~$31.60 while the last quarter saw a similar increase at prices between ~$25 and ~$37. That was followed by a ~15% increase this quarter. The stake is now at 1.46% of the portfolio.

Applied Materials ( AMAT ) and Intuit Inc. ( INTU ): These two small (less than ~1.5% of the portfolio each) stakes were increased during the quarter.

Stake Decreases:

Nvidia Corp. ( NVDA ): NVDA is now the largest 13F position at 9.63% of the portfolio. 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 ~$455. There was a ~7% increase last quarter while this quarter saw similar trimming.

Meta Platforms ( META ) previously Facebook : META is currently a large (top three) stake at ~8% 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 ~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. There was a ~30% selling this quarter at prices between ~$208 and ~$289. The stock currently trades at ~$305.

Tesla Inc. ( TSLA ) : TSLA is currently at ~6% of the portfolio. It was purchased in Q1 2020 at prices between ~$28 and ~$60. The position has wavered. Recent activity follows. 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 ~$271. There was a minor ~4% trimming this quarter.

Netflix Inc. ( NFLX ) : The 4.31% NFLX position is a very long term stake. It was established in 2012 at very low prices. The stake has wavered. Recent activity follows. There was a stake doubling last quarter at prices between ~$293 and ~$368 while this quarter saw a ~25% selling at prices between ~$318 and ~$445. The stock is now at ~$412.

Alphabet Inc. ( GOOG ): The 3.25% GOOG stake was primarily built last quarter at prices between ~$87 and ~$109. The stock currently trades at ~$138. This quarter saw a ~11% trimming.

Block Inc. ( SQ ) previously Square : SQ is a 2.77% of the portfolio position first purchased in Q2 & Q3 2019 at prices between ~$62 and ~$82. The position has wavered. Recent activity follows. Q1 2022 saw a large stake build-up at prices between ~$89 and ~$164. That was followed by a ~85% increase last quarter at prices between ~$61 and ~$88. The stock currently trades at $54.15. This quarter saw a ~14% trimming.

Lam Research ( LRCX ): LRCX is a 2.52% of the portfolio position established during Q3 2022 at prices between ~$366 and ~$532 and the stock currently trades well above that range at ~$659. There was a ~72% stake increase in the last quarter at prices between ~$414 and ~$541. This quarter saw a minor ~3% trimming.

Adobe ( ADBE ): The 2.39% ADBE stake was purchased during the last three quarters at prices between ~$275 and ~$451. There was a ~35% reduction this quarter at prices between ~$335 and ~$495. The stock is now well above their purchase price ranges at ~$554.

Alibaba Group Holding ( BABA ), Charter Communications ( CHTR ), DocuSign Inc. ( DOCU ), Endeavor Group Holdings ( EDR ), Enphase Energy ( ENPH ), and NXP Semi ( NXPI ): These small (less than ~1% of the portfolio each) stakes were reduced this quarter.

Kept Steady:

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. Q4 2022 also saw a ~12% increase. The stock currently trades near the bottom of their purchase price ranges at ~$109. The stake is at 3.90% of the portfolio.

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. Q4 2022 saw the position almost sold out at prices between ~$84 and ~$107. The last quarter saw a ~2% of the portfolio stake built at prices between ~$89 and ~$113. The stock currently trades at $83.48.

CrowdStrike Holdings ( CRWD ): The small 0.69% CRWD stake was kept steady this quarter.

Below is a spreadsheet that shows the changes to Philippe Laffont's Coatue Management 13F long portfolio holdings as of Q2 2023:

Source: John Vincent. Data constructed from Coatue Management’s 13F filings for Q1 2023 and Q2 2023.

For further details see: