ASMLF - Tracking Philippe Laffont's Coatue Management Portfolio - Q3 2022 Update

Summary

• Philippe Laffont’s 13F portfolio value increased from $8.26B to $8.61B this quarter.
• They increased Uber Technologies, Nvidia, and PayPal Holdings while decreasing Tesla, Meta Platforms, Microsoft, and Snowflake. They also dropped Alibaba Group Holding.
• Their top three positions are Tesla, Moderna, and Rivian Automotive, and they add up to ~26% 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 11/14/2022. The 13F portfolio value increased ~4% from $8.26B to $8.61B this quarter. Recent 13F reports have shown around 75 individual stock positions in the portfolio. The largest five stakes are Tesla, Moderna, Rivian Automotive, Uber Technologies, Nvidia. They add up to ~36% 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 Q2 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:

Lam Research ( LRCX ) and Adobe Inc. ( ADBE ): LRCX is a 1.83% of the portfolio position established this quarter at prices between ~$366 and ~$532 and the stock currently trades at ~$421. The 1.27% ADBE stake was purchased at prices between ~$275 and ~$451 and it now goes for ~$338.

Airbnb Inc. ( ABNB ), Intuit Inc. ( INTU ), NXP Semi ( NXPI ), and Advanced Micro Devices ( AMD ): These are very small (less than ~0.65% of the portfolio each) stakes established this quarter.

Stake Disposals:

Alibaba Group Holding ( BABA ): The 2.27% BABA stake was built last quarter at prices between ~$81 and ~$120. The disposal this quarter was at prices between ~$78 and ~$122. The stock is now at ~$89.

Veeva Systems ( VEEV ): The ~1% VEEV stake was established last quarter at prices between ~$153 and ~$216. The elimination this quarter was at prices between ~$158 and ~$232. The stock currently trades at ~$163

Roblox Corp ( RBLX ): Roblox had an IPO last March. Shares started trading at ~$69.50 and currently goes for ~$27. The 2.25% stake was acquired at prices between ~$64 and ~$100. Q1 2022 saw a ~60% selling at prices between ~$70 and ~$135 while last quarter there was a similar increase at prices between ~$37 and ~$99. The stake was sold this quarter at prices between ~$35 and ~$51.

XPeng Inc. ( XPEV ): The very small 0.87% stake XPEV was sold during the quarter.

Stake Increases:

Rivian Automotive ( RIVN ): RIVN is the third-largest position in the portfolio at 7.49%. They had an IPO last November. Shares started trading at ~$100 and currently goes for $18.73. Coatue’s stake goes back to funding rounds starting from July 2020 when the valuation was ~$10B. This is compared to current valuation of ~$5B. There was a ~40% selling last quarter at prices between ~$20 and ~$47. This quarter saw a minor ~4% increase.

Uber Technologies ( UBER ) : UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently goes for $24.91. 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 this year at prices between ~$20.50 and ~$45. The stake is now at 5.12% of the portfolio.

Nvidia Corp ( NVDA ): NVDA is now at 4.77% of the portfolio. Q4 2021 had seen a ~200% stake increase at prices between ~$197 and ~$334. Last two quarters saw the stake almost eliminated at prices between ~$145 and ~$301. The position was rebuilt this quarter at prices between ~$121 and ~$192. The stock is now at ~$146.

PayPal Holdings ( PYPL ) : The 4.69% PYPL stake was built in H1 2016 at prices between ~$31 and ~$37. The stock has wavered. Recent activity follows. Q3 2021 saw a ~22% reduction at prices between ~$259 and ~$309. Last three quarters had seen another ~58% selling at prices between ~$70 and $272. This quarter saw a ~276% stake increase at prices between ~$70 and ~$102. The stock is now at $70.56.

Block Inc. ( SQ ) previously Square : SQ is a 3.18% 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 next quarter at prices between ~$89 and ~$164. Last quarter saw a ~18% trimming while this quarter there was a minor ~3% stake increase. The stock currently trades at ~$63.

Visa Inc. ( V ): The 1.89% of the portfolio stake in Visa was established in Q4 2021 at prices between ~$190 and ~$234 and it is now at ~$208. There was a ~75% reduction last quarter at prices between ~$189 and ~$228. This quarter saw a ~45% stake increase at prices between ~$178 and ~$217.

DoorDash ( DASH ) : DASH is now a 1.62% of the portfolio stake. They had an IPO in December 2020. Shares started trading at ~$165 and currently goes for $49.58. Coatue’s stake goes back to funding rounds from August 2018 when the valuation was ~$4B. This is compared to current valuation of ~$15B. There was a ~70% selling in Q4 2021 at prices between ~$144 and ~$246 while next quarter saw a similar increase at prices between ~$76 and ~$145. The zig-zag trading pattern continued last quarter: ~80% reduction at prices between ~$58 and ~$127. That was followed with a ~200% stake increase this quarter at prices between ~$49.50 and ~$81.

DocuSign Inc. ( DOCU ), Peloton Interactive ( PTON ), Palo Alto Networks ( PANW ), Shopify ( SHOP ), Workday ( WDAY ), and Zoom Video ( ZM ) : These small (less than ~1% of the portfolio each) stakes were increased during the quarter.

Stake Decreases:

Tesla Inc. ( TSLA ) : TSLA is currently the largest position at ~11% 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 a 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 this quarter at prices between ~$227 and ~$309. The stock currently trades at ~$122.

Amazon.com ( AMZN ) : A large stake in AMZN was built in the 2009-2011 timeframe but was sold down 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 next quarter there was a ~45% selling at prices between ~$136 and ~$170. Last quarter saw a one-third increase while this quarter there was a ~22% reduction. The stock is now at ~$84 and it is now at 4.24% of the portfolio.

Enphase Energy ( ENPH ): ENPH is a 3.87% of the portfolio stake primarily built last quarter at prices between ~$138 and ~$216. The stock currently trades well above that range at ~$266. There was a ~12% trimming this quarter.

Endeavor Group Holdings ( EDR ): Endeavor Group Holdings had an IPO last April. Shares started trading at ~$25 and currently goes for $21.93. Coatue’s 3.74% 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. Last two quarters have also seen minor trimming.

Note: They have a ~6.5% ownership stake in the business.

Netflix Inc. ( NFLX ) : The 3.18% 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. The stock is now at ~$291. Last quarter saw a ~14% selling and that was followed with a ~6% trimming this quarter.

Meta Platforms ( META ) previously Facebook : META is a 2.19% of the portfolio position first purchased in 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 last two quarters at prices between ~$134 and ~$232. The stock currently trades at ~$120.

JD.com ( JD ): JD.com is a 1.65% of the portfolio position purchased in Q3 2021 at prices between ~$62 and ~$83. Next two quarters saw a ~55% reduction at prices between ~$43 and ~$88 while last quarter there was a ~75% increase at prices between ~$49 and ~$67. The position was again sold down by ~55% this quarter at prices between ~$50 and ~$66. The stock currently trades at ~$57.

Microsoft Corporation ( MSFT ): MSFT is a 1.17% of the portfolio stake purchased in Q3 2021 at prices between ~$277 and ~$305. There was a ~90% stake increase next quarter at prices between ~$283 and ~$343. Last two quarters saw a ~77% reduction at prices between ~$233 and ~$315. The stock currently trades at ~$241.

Snowflake Inc. ( SNOW ) : SNOW is a ~1% of the portfolio stake. They had an IPO last September. Shares started trading at $229 and currently goes for ~$142. Coatue’s original stake goes back to a third-party tender offer that closed in March 2020. The valuation per the Series G funding round around that time was ~$12.5B. This is compared to current valuation of ~$40B. There was a ~30% stake increase in Q1 2021 at prices between ~$209 and ~$314 while the next three quarters saw a ~60% selling at prices between ~$188 and ~$402. There was a ~25% stake increase in Q1 2022 at prices between ~$167 and ~$332. Last two quarters saw a ~80% selling at prices between ~$113 and ~$241.

Lucid Group ( LCID ): LCID is a small 0.60% of the portfolio stake purchased during the last two quarters at prices between ~$14 and ~$46. It is now well below that range at $6.70. There was a ~50% selling this quarter at prices between ~$14 and ~$22.

Sea Limited ( SE ) : SE is a 0.54% of the portfolio position built in H2 2019 at prices between ~$28 and ~$40. H1 2020 saw a ~45% selling at prices between ~$38 and ~$110. That was followed with another ~40% selling over the two quarters through Q3 2021 at prices between ~$202 and ~$353. Last two quarters saw a two-thirds reduction at prices between ~$57 and ~$133. The stock currently trades at $52.81.

Datadog Inc. ( DDOG ), KE Holdings (BEKE), Novavax Inc. ( NVAX ), Nikola Corp ( NKLA ), Paramount Global ( PARA ) previously ViacomCBS, Pinterest Inc. ( PINS ), SoFi Technologies ( SOFI ), UiPath Inc. ( PATH ), and Upstart Holdings ( UPST ): These very small (less than ~1% of the portfolio each) positions were reduced during the 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 next quarter at prices between ~$130 and ~$235. Q4 2021 saw a ~30% reduction at prices between ~$226 and ~$369 while next quarter there was a ~60% stake increase at prices between ~$127 and ~$235. The stock currently trades at ~$179 and the stake is a top-three position at 7.83% of the portfolio.

Walt Disney ( DIS ) : DIS is a 3.39% of the portfolio stake. A huge position 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 stock currently trades at ~$87.

Zillow Group ( Z ) : The ~1% Zillow stake was built in H2 2020 at prices between ~$60 and ~$140. Q4 2021 saw a ~72% selling at prices between ~$53 and ~$104 while next quarter there was a similar increase at prices between ~$46 and ~$65. The stock is now at ~$32.

GitLab Inc. ( GTLB ): GitLab had an IPO in October 2021. Shares started trading at ~$104 and currently goes for $45.95. Coatue’s stake goes back to a Series E funding round when the valuation was ~$2.75B. The current valuation is ~$5.6B. There was a ~18% trimming in Q1 2022.

Note: They have a ~11% ownership stake in GitLab.

Bath & Body Works ( BBWI ) previously L Brands, BioNTech SE ( BNTX ), Broadcom Ltd. ( AVGO ), CrowdStrike Holdings ( CRWD ), Equifax Inc. ( EFX ), and monday.com ( MNDY ): These small (less than ~1.75% of the portfolio each) stakes were kept steady this quarter.

The rest of the stakes in the portfolio are minutely small. They are Agora Inc. ( API ), AMC Entertainment ( AMC ), Applied Materials ( AMAT ), ASML Holding ( ASML ), Beyond Meat ( BYND ), Carvana ( CVNA ), Confluent Inc. ( CFLT ), Dingdong Cayman ( DDL ), Farfetch Ltd. ( FTCH ), Fisker Inc. ( FSR ), Freshworks ( FRSH ), GameStop ( GME ), Grab Holdings ( GRAB ), HashiCorp Inc. ( HCP ), Hertz Global ( HTZ ), Kanzhun Ltd. ( BZ ), Lyft Inc. ( LYFT ), Melco Resorts ( MLCO ), MercadoLibre ( MELI ), Novavax Inc. ( NVAX ), Okta Inc. ( OKTA ), Pinduoduo ( PDD ), QuantumScape ( QS ), RingCentral ( RNG ), Singular Genomics ( OMIC ), Snap Inc. ( SNAP ), Stitch Fix Inc. ( SFIX ), Synaptics ( SYNA ), Trip.com ( TCOM ), Twilio ( TWLO ), and Victoria’s Secret ( VSCO ).

Below is a spreadsheet that shows the changes to Philippe Laffont's Coatue Management 13F long portfolio holdings as of Q3 2022:

Source: John Vincent. Data constructed from Coatue Management’s 13F filings for Q2 2022 and Q3 2022.

For further details see: