Several Tiger-related hedge funds made significant buys and sells in the first quarter, according to an Institutional Investor analysis of recently filed 13F documents.
No firm appeared more active than D1 Capital Partners, headed by Dan Sundheim. And it certainly wasn’t a case of trying to shake things up from a position of weakness. The hedge fund’s public portfolio had gained more than 7 percent in the first quarter and 11.8 percent through April.
Even so, in the first three months, D1 shook up its top-ten holdings. It established three new positions that immediately cracked the top nine while more than tripling another position and catapulted it to a significant role.
For example, D1 made two major new investments in financial giants. Charles Schwab is now the third-largest and Bank of America the fifth-largest long. In addition, the firm established new positions in CNW, now the eighth-largest long position. Altogether, nine of the hedge fund’s 18 largest long positions were newly established in the first quarter.
D1 also more than tripled its stake in software maker Ansys, which immediately became D1’s sixth-largest long, and fully liquidated its stake in distiller Constellation Brands, which had been its fourth-largest long at year-end. It sharply reduced its positions in tobacco giant Philip Morris International and cruise giant Royal Caribbean, both previous top-three holdings — although they remain among the top ten. The only constant is Instacart parent Maplebear, which remained the hedge fund’s largest long position.
Other Tiger funds also made major moves in the first quarter.
For example, O. Andreas Halvorsen’s Viking Global Investors made two significant new investments. It took large new stakes in Facebook parent Meta Platforms and banking giant Capital One. The hedge fund firm made a major bet on financials in the fourth quarter, boosting Schwab to the No. 2 spot and making U.S. Bancorp its largest long after increasing its stake by more than 40 percent.
At the same time, Viking cut its stake in JPMorgan Chase, previously its largest long, by more than 70 percent. It is now a midsize position. In the first quarter, the long-short fund was up 1.6 percent and the long-only fund rose 1.4 percent.
Lee Ainslie III’s Maverick Capital made a number of new major purchases in the first quarter. In fact, four of its top-12 U.S. longs were established in the March period. They are Kenvue, the former consumer health care division of Johnson & Johnson; Bank of America; conglomerate Danaher; and Merit Medical Systems.
Maverick’s long-short fund was up 1.5 percent in the first quarter and 2.9 percent through April. The long-only fund lost 2.7 percent in the first quarter but rose 60 basis points through April.
Glen Kacher’s Light Street Capital also made some major moves in the first quarter. It more than quadrupled its stake in cloud-based specialist Bill Holdings, which became the third-largest long. The hedge fund also established new positions in social media company Reddit and enterprise software company BlackLine.
At the same time, it fully unloaded its stake in chip giant Marvell Technology, formerly its fourth-largest long, and slashed its stake in Meta Platforms by 30 percent.
