Hedge Funds Added Tech Stocks Ahead of Trump Victory Sell-Off

  • Tiger Global, Coatue, Appaloosa also piled into tech
  • Tudor bet on financial institutions that have since surged

Which Tech Stocks Suffer Under Trump Administration?

Marquee money managers including Moore Capital Management and Point72 Asset Management boosted their holdings of technology firms in the third quarter, before the U.S. presidential election spurred a selloff in the industry.

Louis Bacon’s Moore Capital almost doubled its holding in Facebook Inc. to about $103 million as of Sept. 30, and took a stake in Internet giant Alphabet Inc., the parent company of Google, according to government filings Monday. Point72, the family office for billionaire Steve Cohen, built a $337 million stake in Alphabet Class A shares, its biggest new buy for the period, while Chase Coleman’s Tiger Global Management took a $221 million position in the company. Tiger also bought $568 million worth of Alibaba Group Holding Ltd. shares that trade in the U.S.

The S&P 500 Information Technology Index surged almost 13 percent as the money managers built their investments in the third quarter. Since then, the sector has taken a turn. Facebook shares have fallen about 10 percent and Google has dropped 6.3 percent.

Trump Policies

Tech stocks in the index slumped 3.1 percent after the Nov. 8 presidential election, trailing the S&P 500 Index by 4.2 percentage points, on speculation that Donald Trump’s trade and immigration policies could lower future earnings.

Money managers who oversee more than $100 million in U.S. equities must file a Form 13F within 45 days of the end of each quarter to list their holdings in stocks that trade on U.S. exchanges, as well as options and convertible debt. The filings don’t show non-U.S. traded securities, bonds, cash or wagers against stocks.

Coatue Management, Philippe Laffont’s stock-focused hedge fund, took new stakes in Apple Inc. and Alibaba worth $735 million and $295 million, respectively, at the end of the quarter. The purchases made Apple the firm’s second-largest disclosed stock position behind Facebook, a position it also increased during the quarter.

David Tepper’s Appaloosa Management also bought a new position in Facebook, worth $190 million.

Financial Stakes

Not all hedge fund managers were bullish on tech during the quarter. Greenlight Capital, the hedge fund firm led by David Einhorn, cut its stake in Apple by 1.66 million shares as the stock rallied 18 percent. Worth $587 million as of Sept. 30, the firm’s position in Apple is still its largest disclosed stock holding.

Lone Pine Capital built new stakes in e-commerce giants EBay Inc., Expedia Inc. and Alibaba. Still, the fund run by Stephen Mandel trimmed its bet on Amazon Inc., reduced its wager on Facebook by more than half and cut its position in Microsoft Corp. It also slashed its stake in Alphabet’s Class A shares.

Financial institutions, which have surged 11 percent since the election on Trump’s promises to deregulate the industry, were a favorite for billionaire Paul Tudor Jones, who grew his exposure to the sector 8 percent. Zach Schreiber’s PointState Capital took a $340 million stake in Bank of America Corp. -- his biggest new buy.

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