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Coatue May Start Fund After Missing Out on Netflix, Baidu Gains

  • Coatue Management trimmed tech wagers to rebalance risk
  • Hedge fund might start side fund that could maintain bets
Philippe Laffont
Philippe LaffontPhotographer: Chris Goodney/Bloomberg

Philippe Laffont, whose flagship hedge fund returned about 24 percent in 2017, is exploring new ways to structure Coatue Management’s investment vehicles after missing some dramatic, long-term returns in its technology portfolio.

Coatue would have had larger profits over several years had it not cut stakes in Tencent Holdings Ltd., Netflix Inc. and Baidu Inc. to rebalance risk, Laffont wrote in a letter seen by Bloomberg. His lament comes even as Coatue’s $8.9 billion flagship fund outperformed its peers in 2017 and rose 9.9 percent in January.