D1’s Big Bets on Venture Capital Are Weighing Down Its Returns

D1 Capital Partners’s massive exposure to private bets is weighing on returns, making it one of the year’s worst-performing crossover funds.

Dan Sundheim’s firm — which has 60% of its roughly $20 billion of assets invested in venture capital and private equity — gained just 3.8% this year through August after barely making money last month, according to people familiar with the matter. Those results are for a share class with as much as 35% invested in private assets.