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The Morning Brief: NetFlix Swoons on Lower Subs Guidance

Netflix rocked the hedge fund world on Tuesday when the streaming-video company issued disappointing guidance for future subscriber rolls. The stock plummeted 13 percent on the news, to $94.34. At least 79 hedge funds held a position in the stock at year-end, according to Goldman Sachs. It was the ninth most popular stock among the Tiger crowd — the so-called Tiger Cubs, Seeds and Grandcubs — with 11 firms holding a position, according to New York–based Novus, a portfolio intelligence firm that, among other things, analyzes the quarterly filings of hedge funds. They include Tiger Global Management, which counts Netflix as one of its three major holdings accounting for a big chunk of its U.S. long portfolio. The New York hedge fund manager is also Netflix’s fourth-largest shareholder. The stock was also the tenth-largest U.S. long of Greenwich, Connecticut-based Viking Global Investors and the third-largest holding of New York-based Coatue Management.


David Einhorn’s Greenlight Capital unloaded nearly 16 million shares of Sun Edison for either $0.2982 or $0.3775 per share, leaving it with 11.3 million shares, or just 2.8 percent of the total outstanding. The alternative energy company is reportedly on the verge of filing for bankruptcy. The stock is currently down 99 percent from its high just this past summer.


Daniel Och’s Och-Ziff Capital Management reported it owns 5.2 percent of Square, the payment-processing company. At year-end, New York-based Tiger Global Management was the seventh largest shareholder. The stock dropped 2.9 percent on Tuesday to close at $14.09


Yunhee Yoo, a former analyst at Los Angeles-based Canyon Capital Advisors, plans to launch her own firm, Cascade Ridge Capital, in early 2017, according to Reuters. She figures to have $150 million in assets when she gets started, according to the report. The firm will concentrate on credit but will also trade stocks.

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