Insight into the Tech-Savvy Hedge Fund's Latest Portfolio Adjustments
Philippe Laffont (Trades, Portfolio), the tech-investment maven and founder of Coatue Management, has revealed his fund's latest maneuvers in the third quarter of 2023. Coatue, known for its tech-centric investment strategy, is steered by Laffont's expertise, honed under the tutelage of Julian Robertson at Tiger Management (Trades, Portfolio). The fund's approach combines a mix of long and short strategies with a focus on fundamental analysis and top-down stock picking. With a significant portion of its assets in the information technology sector, Coatue also diversifies across consumer discretionary, healthcare, and other industries.
New Additions to the Portfolio
Coatue Management's Q3 2023 filings show strategic new investments in several companies:
- Maplebear Inc (CART, Financial) leads the new additions with 10,277,443 shares, making up 1.55% of the portfolio and valued at $305.14 million.
- Shopify Inc (SHOP, Financial) follows closely with 5,616,241 shares, also representing 1.55% of the portfolio, at a total value of $306.48 million.
- Intuitive Surgical Inc (ISRG, Financial) rounds out the top three, with 785,541 shares accounting for 1.16% of the portfolio, valued at $229.61 million.
Significant Increases in Existing Holdings
Philippe Laffont (Trades, Portfolio)'s Coatue Management didn't just add new stocks but also bolstered its positions in existing holdings:
- Intuit Inc (INTU, Financial) saw a substantial increase of 936,883 shares, bringing the total to 1,501,205 shares. This represents a 166.02% jump in share count and a 2.43% portfolio impact, with a total value of $767.03 million.
- Eaton Corp PLC (ETN, Financial) also experienced a significant boost with an additional 2,012,103 shares, totaling 3,790,636 shares, marking a 113.13% increase in share count and a total value of $808.47 million.
Exiting Positions
The third quarter also saw Coatue Management exit several positions:
- Ulta Beauty Inc (ULTA, Financial) was completely sold off, with 459,983 shares liquidated, impacting the portfolio by -1.06%.
- Endeavor Group Holdings Inc (EDR, Financial) was another exit, with all 6,628,602 shares sold, resulting in a -0.78% portfolio impact.
Noteworthy Reductions
Reductions in holdings were also part of the Q3 strategy:
- Block Inc (SQ, Financial) saw a dramatic reduction of 7,657,647 shares, a -90.19% decrease, affecting the portfolio by -2.5%. The stock's average trading price was $61.92 during the quarter, with a -14.17% return over the past three months and -17.27% year-to-date.
- Microsoft Corp (MSFT, Financial) shares were cut by 1,458,580, a -27.56% reduction, impacting the portfolio by -2.43%. MSFT's average price was $330.44 during the quarter, with a 14.36% return over three months and a 53.79% year-to-date increase.
Portfolio Overview
As of the third quarter of 2023, Philippe Laffont (Trades, Portfolio)'s portfolio comprised 87 stocks. The top holdings included 10.02% in NVIDIA Corp (NVDA, Financial), 9.4% in Meta Platforms Inc (META, Financial), 6.84% in Amazon.com Inc (AMZN, Financial), 6.5% in Advanced Micro Devices Inc (AMD, Financial), and 6.14% in Microsoft Corp (MSFT). The investments span across nine industries, with a strong focus on technology and communication services.
Philippe Laffont (Trades, Portfolio)'s latest 13F filing paints a picture of a dynamic portfolio, with significant shifts that reflect the fund's confidence in its new picks and adjustments to existing stakes. As Coatue Management continues to navigate the tech landscape with its strategic investments, value investors and GuruFocus.com members alike will be watching closely to glean insights from Laffont's moves.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
