May 21, 2024

Hedge fund Coatue exits Apple stake in Q1 as Viking builds its position

Hedge fund Coatue Management exited its stake in Apple Inc. In the first quarter, while Viking Global Investors added a large new position, according to securities filings on Wednesday.

Coato, founded by Philippe Laffont, owned 2.4 million Apple shares worth $470.6 million as of December. Regulatory filings show that Coatue fully exited that holding by the end of March.

Apple shares fell nearly 11% in the first quarter as the company faced intense competition in China and declining sales. Shares of the iPhone maker pared losses in the second quarter and are now down 1.5% year to date.

Other major investors reduced their stakes in Apple. Earlier this month, Warren Buffett’s Berkshire Hathaway said it had cut its position by 13%. However, Buffett praised the company at Berkshire’s annual meeting, calling the iPhone “one of the greatest products.”

Coatue also reduced its stake in chip giant Nvidia by about 68% to 1.4 million shares, or $1.2 billion. Year to date, Nvidia shares are up 91%.

Coatue also reduced its position in electric car maker Tesla by 37% to 2.6 million shares. The company’s shares fell by about 30% this year amid fierce competition and slowing sales.

In return, Coatue doubled its equity holdings in Google’s parent company Alphabet to 5.7 million shares.

Conversely, Viking noted in the report a new stake worth $663.8 million in Apple and a similar position in Microsoft.

The funds’ positions are disclosed in quarterly securities reports, known as 13Fs. These retrospective snapshots show what funds owned on the last day of the quarter, and are one of the few methods used by hedge funds and other institutional investors to report their positions. Reports do not contain accurate information about the timing of purchases or sales and may not reflect current inventory.

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Both Coatue and Viking are called Tiger Cubs, which are hedge funds founded by veteran investor Julian Robertson, founder of Tiger Management. (Reporting by Carolina Mandel in New York; Editing by Chris Reese)