NU - Tracking Philippe Laffont's Coatue Management Portfolio - Q3 2023 Update

2023-12-13 20:16:43 ET

Summary

• Coatue Management's 13F portfolio value decreased from $20.41B to $19.71B in Q3 2023.
• The largest five stakes in the portfolio are Nvidia, Meta Platforms, Amazon.com, Advanced Micro Devices, and Microsoft.
• New stakes include Shopify, Maplebear Inc., and Intuitive Surgical, while stake disposals include Ulta Beauty and Endeavor Group Holdings.

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 11/14/2023. The 13F portfolio value decreased $20.41B to $19.71B this quarter. Recent 13F reports have shown around 75 individual stock positions in the portfolio. The largest five stakes are Nvidia, Meta Platforms, Amazon.com, Advanced Micro Devices, and Microsoft. They add up to ~39% 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 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:

Shopify (SHOP), Maplebear Inc. (CART), and Intuitive Surgical (ISRG): The 1.55% SHOP position was established this quarter at prices between $51.51 and $70.37. The stock currently trades at $73.86. CART is a 1.55% position established this quarter at prices between $28.54 and $33.70 and the stock currently trades below that range at $24.88. The 1.16% ISRG stake was purchased this quarter at prices between ~$284 and ~$355. The stock is now at ~$329.

Stake Disposals:

Ulta Beauty ( ULTA ) : ULTA was a small ~1% stake established last quarter at prices between ~$404 and ~$551. The stake was disposed at prices between ~$390 and ~$484. The stock currently trades at ~$493.

Endeavor Group Holdings ( EDR ) : The very small 0.78% stake in EDR was dropped this quarter.

Stake Increases:

Meta Platforms ( META ) : META is currently a large (top three) stake at 9.40% 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 two quarters through Q1 2023 saw a huge ~480% stake build-up at prices between ~$89 and ~$212. There was a ~30% selling last quarter at prices between ~$208 and ~$289. The stock currently trades at ~$335. This quarter saw a ~9% stake increase.

Alphabet Inc. ( GOOG ) : The 4.31% GOOG stake was primarily built during Q1 2023 at prices between ~$87 and ~$109. The stock currently trades at ~$134. The last quarter saw a ~11% trimming while this quarter there was a ~17% increase.

Eaton Corp ( ETN ) : ETN is a ~4% of the portfolio position purchased last quarter at prices between ~$156 and ~$201. The position was increased by 113% this quarter at prices between ~$196 and ~$237. The stock is now at the top of those ranges at ~$237.

Intuit Inc. ( INTU ) : The 3.89% INTU position was increased by 166% this quarter at prices between ~$447 and ~$553. The stock currently trades well above that range at $610.

Adobe Systems ( ADBE ) : The 3.19% ADBE stake was purchased during the three quarters through Q1 2023 at prices between ~$275 and ~$451. There was a ~35% reduction last quarter at prices between ~$335 and ~$495. The position was increased by 23% this quarter at prices between ~$481 and ~$565. The stock is now at ~$590.

First Citizens BancShares ( FCNCA ) : FCNCA is a 2.39% of the portfolio position purchased during Q1 2023 at prices between ~$509 and ~$973. There was a ~150% stake increase last quarter at prices between ~$958 and ~$1321. There was a ~6% stake increase this quarter. The stock is now well above their purchase price ranges at ~$1476.

Equinix Inc. ( EQIX ) : The 1.86% EQIX stake was established last quarter at prices between ~$675 and ~$784 and it now goes for ~$810. The position was increased by 28% this quarter at prices between ~$703 and ~$811.

Vertiv Holdings ( VRT ) : The 2.18% VRT position was increased by 152% this quarter at prices between $24.08 and $39.87. The stock currently trades well above that range at $47.94.

Nu Holdings ( NU ) : NU is a ~2% position built this quarter at prices between $6.81 and $8.18. The stock is now at $8.55.

UnitedHealth Group ( UNH ) : The 1.63% UNH stake was purchased during Q1 2023 at prices between ~$460 and ~$519 and it now goes for ~$549. There was a marginal increase this quarter.

Eli Lilly (LLY), and Danaher Corp (DHR): These two small (less than ~1% of the portfolio each) stakes were increased during the quarter.

Stake Decreases:

Nvidia Corp ( NVDA ) : NVDA is now the largest 13F position at ~10% 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 ~$481. There was a ~7% increase during Q1 2023 while the last two quarters saw minor trimming.

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 ~$149 and it is now a large (top three) stake at ~7% of the portfolio. This quarter saw a ~15% trimming at prices between ~$126 and ~$145.

Advanced Micro Devices ( AMD ) : The 6.50% AMD stake saw a ~50% increase during Q1 2023 at prices between ~$62 and ~$100. That was followed by a two-thirds further increase last quarter at prices between ~$82 and ~$129. The stock currently trades at ~$138. This quarter saw a ~11% trimming.

Microsoft Corporation ( MSFT ) : MSFT is a large ~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 three quarters saw the position rebuilt at prices between ~$214 and ~$348. The stake was decreased by ~28% this quarter at prices between ~$312 and $358. The stock currently trades at ~$374.

Tesla Inc. ( TSLA ) : TSLA is currently at ~5% 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 two quarters through Q1 2023 saw a ~37% increase at prices between ~$108 and ~$309. The stock currently trades at ~$239. The stake was decreased by 14% this quarter at prices between ~$215 and ~$293.

Netflix Inc. ( NFLX ) : The 3.83% 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 during Q1 2023 at prices between ~$293 and ~$368 while the last quarter saw a ~25% selling at prices between ~$318 and ~$445. The stock is now at ~$480. This quarter saw marginal trimming.

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. This quarter saw a ~25% selling at prices between ~$96 and ~$127. The stock currently trades at $78.60. The stake is at 2.57% of the portfolio.

Lam Research ( LRCX ) : LRCX is a 2.26% of the portfolio position established during Q3 2022 at prices between ~$366 and ~$532 and the stock currently trades well above that range at ~$735. There was a ~72% stake increase in the during Q1 2023 at prices between ~$414 and ~$541. This quarter saw a ~11% trimming.

Oracle Corp ( ORCL ) : ORCL is a 1.20% of the portfolio position purchased last quarter at prices between ~$93 and ~$127 and the stock currently trades at ~$103. The stake was decreased by 49% this quarter at prices between ~$104 and ~$126.

Taiwan Semi ( TSM ) : TSM is a ~1% of the portfolio position established during Q1 2023 at prices between ~$74 and ~$98 and the stock currently trades at ~$102. There was a ~15% stake increase last quarter while this quarter saw a ~65% reduction at prices between ~$84 and ~$105.

Block Inc. ( SQ ) : SQ is now a very small 0.19% stake. It was 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 during Q1 2023 at prices between ~$61 and ~$88. The position was almost sold out this quarter at prices between $44.14 and $80.53. The stock currently trades at $70.06.

Albemarle Corp (ALB), Applied Materials (AMAT), Charter Communications (CHTR), and CrowdStrike Holdings (CRWD): These very small (less than ~1% of the portfolio each) stakes were reduced during the quarter.

Kept Steady:

Uber Technologies ( UBER ) : UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently go for $61.97. 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 ~$129B. 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 next quarter saw a similar increase at prices between ~$25 and ~$37. That was followed by a ~15% increase last quarter. The stake is now at 1.61% 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 next quarter saw a ~2% of the portfolio stake built at prices between ~$89 and ~$113. The stock currently trades at $92.83.

Below is a spreadsheet that shows the changes to Philippe Laffont's Coatue Management 13F long portfolio holdings as of Q3 2023:

Source: John Vincent. Data constructed from Coatue Management’s 13F filings for Q2 2023 and Q3 2023.

For further details see: