Netflix, Meta Dropped By Hedge Funds As Tech Sell-Off Continues, Telecom News, ET Telecom



By David Randall and Carolina Mandl

NEW YORK, – Tiger Global Management, Winslow Capital Management and Scopus Asset Management were among funds that sold all of their shares in streaming company Netflix Inc before the company reported its first loss of subscribers in more than a decade in March, according to title fills released on Monday.

The exit from Netflix, whose share price is down 69% year-to-date, comes as fund managers reassess big tech companies that rallied after the coronavirus pandemic began. coronavirus in 2020 and helped propel the benchmark S&P 500 index to record highs.

The S&P 500 is now down nearly 16% year-to-date, while the more tech-focused Russell 1000 Growth Index is down nearly 25% over the same period.

The Light Street hedge fund sold all of its 149,025 shares in Meta Platforms Inc, Facebook’s parent company, and 7,960 shares in Netflix. It nearly halved its stake in Alphabet Inc, Google’s parent company, and trimmed its exposure to Amazon.com Inc, cutting it by 10% in the quarter that ended March, filings show. .

Meanwhile, Hitchwood Capital Management LP sold all of its 390,000 shares of Meta, while Dan Sundheim’s D1 Capital also cut its stake in Amazon by 22%, to 198,433 shares, and Melvin Capital sold all of its 850,000 shares of Meta.

Securities filings known as 13-Fs are one of the few public ways to see what hedge funds and other institutional investors hold in their portfolios, though they are retrospective and do not reveal current positions.

Despite the widespread abandonment of technology, some hedge funds have increased their positions in certain companies. Farallon Capital Management added 698,195 shares of Meta, whose shares are down 40.5% for the year so far.

Coatue Management, meanwhile, increased its number of shares in Meta Platforms Inc by 18.2% in the first quarter, to 2,797,896. It also bought more shares of Netflix, ending March with 1,438,956 shares. , or 54.5% more than in December.

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