PARAP - Tracking Philippe Laffont's Coatue Management Portfolio - Q4 2022 Update

2023-04-11 05:30:55 ET

Summary

• Philippe Laffont’s 13F portfolio value increased from $8.61B to $8.92B this quarter.
• They added Alibaba Group Holding while reducing PayPal Holdings, Uber Technologies, and Walt Disney.
• Their top three positions are Moderna, Nvidia, and Tesla, 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 2/14/2023. The 13F portfolio value increased ~$8.61B to ~$8.92B this quarter. Recent 13F reports have shown around 75 individual stock positions in the portfolio. The largest five stakes are Moderna, Nvidia, Tesla, Meta Platforms, and Alibaba Group Holdings. 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 Q3 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:

Alibaba Group Holding ( BABA ): BABA is a large (top five) 4.94% of the portfolio stake established this quarter at prices between ~$63 and ~$94 and the stock currently trades above that range at ~$102.

Applied Materials ( AMAT ), Charter Communications ( CHTR ), Pinduoduo ( PDD ), and Okta Inc. ( OKTA ): These are very small (less than ~1% of the portfolio each) stakes established this quarter.

Stake Disposals:

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 ~$226. There was a ~75% reduction during Q2 2022 at prices between ~$189 and ~$228. The last quarter saw a ~45% stake increase at prices between ~$178 and ~$217. The disposal this quarter was at prices between ~$178 and ~$218.

Lucid Group ( LCID ): LCID was a small 0.60% of the portfolio stake purchased during H1 2022 at prices between ~$14 and ~$46. It is now well below that range at $8.03. There was a ~50% selling last quarter at prices between ~$14 and ~$22. The disposal this quarter was at prices between $6.15 and $14.30.

Airbnb, Inc. ( ABNB ), Datadog Inc. ( DDOG ), monday.com ( MNDY ), Nikola Corp. ( NKLA ), Paramount Global ( PARA ), previously ViacomCBS, Palo Alto Networks ( PANW ), Shopify ( SHOP ), Workday ( WDAY ), and Zoom Video ( ZM ): These very small (less than ~1% of the portfolio) stakes were dropped this quarter.

Stake Increases:

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. This quarter also saw a ~12% increase. The stock currently trades at ~$160 and it is the largest 13F stake at ~13% of the portfolio.

Nvidia Corp. ( NVDA ): NVDA is now a large (top three) 7.60% 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 last two quarters at prices between ~$112 and ~$192. The stock is now at ~$276.

Tesla, Inc. ( TSLA ) : TSLA is currently the third largest position at ~6% 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 last quarter at prices between ~$227 and ~$309. This quarter saw a similar increase at prices between ~$109 and ~$229. The stock currently trades at ~$185.

Meta Platforms ( META ), previously Facebook : META is a 5.10% 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. This quarter saw a ~170% stake increase at prices between ~$89 and ~$138. The stock currently trades at ~$215.

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. Q2 2022 saw a one-third increase while last quarter there was a ~22% reduction. This quarter saw a ~50% stake increase at prices between ~$82 and ~$121. The stock is now at ~$102 and it is now at 4.63% of the portfolio.

Netflix Inc. ( NFLX ) : The 4.42% 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 ~$339. The last two quarters saw a ~20% trimming while this quarter saw a ~15% stake increase.

Adobe ( ADBE ): The 4.39% ADBE stake was purchased during the last two quarters at prices between ~$275 and ~$451 and it now goes for ~$376.

Microsoft Corporation ( MSFT ): MSFT is a 4.25% 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. The last two quarters saw a ~77% reduction at prices between ~$233 and ~$315. This quarter saw the position rebuilt at prices between ~$214 and ~$257. The stock currently trades at ~$289.

Block Inc. ( SQ ), previously Square : SQ is a 3.79% 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. Q2 2022 saw a ~18% trimming while the last two quarters saw a ~10% stake increase. The stock currently trades at $66.36.

JD.com ( JD ): JD.com is a 2.55% 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 during Q2 2022 there was a ~75% increase at prices between ~$49 and ~$67. The position was again sold down by ~55% last quarter at prices between ~$50 and ~$66. There was a ~43% stake increase this quarter at prices between ~$37 and ~$60. The stock currently trades at ~$40.

Lam Research ( LRCX ): LRCX is a 2.27% of the portfolio position established last quarter at prices between ~$366 and ~$532 and the stock currently trades at ~$508. There was a ~12% stake increase this quarter.

Advanced Micro Devices ( AMD ), BioNTech SE ( BNTX ), DocuSign Inc. ( DOCU ), Intuit Inc. ( INTU ), and Peloton Interactive ( PTON ) : 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 last April. Shares started trading at ~$25 and currently goes for $23.90. 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 three quarters have also seen a ~17% trimming.

Note: They have a ~5% ownership stake in the business.

Enphase Energy ( ENPH ): ENPH is a 3.39% of the portfolio stake primarily built during Q2 2022 at prices between ~$138 and ~$216. The stock currently trades at ~$196. There was a ~18% trimming over the last two quarters.

Rivian Automotive ( RIVN ): The RIVN stake is now at 1.72% of the portfolio. They had an IPO last November. Shares started trading at ~$100 and currently goes for $14.81. Coatue's stake goes back to funding rounds starting from July 2020 when the valuation was ~$10B. This is compared to current valuation of ~$3.7B. There was a ~40% selling during Q2 2022 at prices between ~$20 and ~$47. This quarter saw a ~60% reduction at prices between ~$17 and ~$35.

DoorDash ( DASH ) : DASH is now a 1.53% of the portfolio stake. They had an IPO in December 2020. Shares started trading at ~$165 and currently goes for $61.58. 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 during Q2 2022: ~80% reduction at prices between ~$58 and ~$127. That was followed with a ~200% stake increase last quarter at prices between ~$49.50 and ~$81. There was marginal trimming this quarter.

PayPal Holdings ( PYPL ) : The 1.28% 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. The three quarters through Q2 2022 saw another ~58% selling at prices between ~$70 and $272. The last quarter saw a ~276% stake increase at prices between ~$70 and ~$102. This quarter saw a roughly two-thirds selling at prices between ~$67.50 and ~$91. The stock is now at $74.52.

Uber Technologies ( UBER ) : UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently goes for $31.74. 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 last three quarters at prices between ~$20.50 and ~$45. This quarter saw the position sold down by ~80% at prices between ~$24.40 and ~$31.60. The stake is now at ~1% of the portfolio.

Zillow Group ( Z ) : The 0.57% 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. There was a ~50% reduction this quarter at prices between ~$27 and ~$39. The stock is now at ~$45.

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 ~$148. 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. The last three quarters saw the position reduced by ~90% at prices between ~$113 and ~$241.

Walt Disney ( DIS ) : DIS is now a minutely small 0.14% 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. This quarter saw the position almost sold out at prices between ~$84 and ~$107. The stock currently trades at ~$101.

CrowdStrike Holdings ( CRWD ), KE Holdings (BEKE), Pinterest, Inc. ( PINS ), Sea Limited ( SE ), and UiPath Inc. ( PATH ): These small (less than ~1% of the portfolio each) stakes were reduced this quarter.

Kept Steady:

GitLab Inc. ( GTLB ): GitLab had an IPO in October 2021. Shares started trading at ~$104 and currently goes for $33.58. Coatue's stake goes back to a Series E funding round when the valuation was ~$2.75B. The current valuation is ~$4.2B. There was a ~18% trimming in Q1 2022.

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

Bath & Body Works ( BBWI ) previously L Brands, Broadcom ( AVGO ), Equifax Inc. ( EFX ), and NXP Semi ( NXPI ): These small (less than ~1.75% of the portfolio each) stakes were kept steady this quarter.

Below is a spreadsheet that shows the changes to Philippe Laffont's Coatue Management 13F long portfolio holdings as of Q4 2022:

For further details see: