Spotify Technology hit a sour note when it reported quarterly earnings.
Several prominent hedge funds were rocked Tuesday by a sharp sell-off in the shares of the audio streaming giant. The stock fell more than 13 percent after the company reported strong quarterly results but followed up with mixed guidance that was enough to disappoint investors. The guidance is “subject to substantial uncertainty,” Spotify said in an earnings presentation.
The stock is down about 29 percent since its early-January high. That's bad news for many hedge funds, including several Tiger Cubs, that either boosted their stakes or initiated new positions in the fourth quarter, regulatory filings reveal.
For example, Spotify was Tremblant Capital Group’s largest U.S.-listed long position at year-end, accounting for 3.6 percent of the U.S. portfolio after the hedge fund firm more than tripled its stake in the fourth quarter. The fund is headed by Brett Barakett.
Philippe Laffont’s Coatue Management was the tenth-largest shareholder at year-end. Spotify was the hedge fund’s 14th-largest U.S.-listed long after the firm added about 36 percent to its stake during the fourth quarter. Spotify was also the 14th-largest U.S. long position for Chase Coleman’s Tiger Management. Steve Cohen’s Point72 Asset Management counted the stock as its 16th-largest U.S. long after nearly tripling its position in the fourth quarter.
A number of well-known hedge funds established sizable new positions in Spotify in the fourth quarter of 2025.
Dan Sundheim’s D1 Capital Partners bought nearly 400,000 shares in the quarter, making the stock the Tiger Grandcub’s 19th-largest U.S. long. Dan Loeb’s Third Point also initiated a position in that period, scooping up 100,000 shares — a modest position for the hedge fund.
D.E. Shaw purchased nearly 770,000 shares in the fourth quarter, a relatively small position for the multistrategy giant. Marshall Wace was a big buyer, picking up more than 730,000 shares; even so, Spotify is just a midsize position for the hedge fund giant.
In contrast, no prominent hedge fund emerged as a significant seller of Spotify’s stock in the last quarter of the year. More clarity will come in the next couple of weeks when hedge funds file their latest 13F quarterly documents.
