In recent years, when we think of hot stocks, names like Tesla, Facebook, Amazon, Alibaba, Alphabet, Microsoft and Peloton come to mind. These stocks have seen quite a bit of action among hedge funds every quarter for the last few years, but we uncovered an interesting trend in the third quarter.
NEW YORK, NEW YORK – NOVEMBER 19: Information about Facebook stock shares is displayed on a monitor … [+]
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The 13F data from the third quarter reveals that of the funds that made trades in those hot names, many of them were reducing or exiting the positions. Many hedge funds didn’t do anything with these stocks during the quarter. Here’s a quick roundup of this significant trend from the third quarter.
Of course, there are always going to be exceptions to every trend. Additions and new positions in some of the hot stocks from recent years amount to almost as many exits and reduced stakes in these stocks, but what is notable is the fact that there was so much selling activity in these stocks. In past quarters, we’ve seen a lot of buying but not as much selling in these highly favored stocks.
Dumping hot stocks
Coatue exited Coinbase, while Appaloosa exited Netflix, and D1 dumped Chipotle Mexican Grill and Booking Holdings. Duquesne unloaded all of its shares in Netflix, and Elliott dumped Snap. Glenview sold all of its shares of Amazon and Alibaba, while Lansdowne exited T-Mobile and Roblox.
Maverick unloaded all of its positions in Alibaba and Starbucks, while Melvin Capital exited JD.com, PayPal, Uber and Shopify. Paulson exited DISH Network. Point72 exited Netflix, Alibaba and Cisco Systems, and Temasek sold off its entire stakes in Baidu and Microsoft.
Third Point dumped its entire positions in Uber, JD.com and Peloton, while Viking Global dumped Square, Shopify and Alphabet.
Cutting back on hot stocks
Adage reduced its position in Facebook, while Appaloosa cut back on Amazon, Alibaba, Facebook, Twitter and Uber. Baillie Gifford also reduced its positions in Alibaba, Amazon and Shopify. Baupost cut its stakes in eBay and Intel, while Bridgewater slashed its position in Microsoft. Coatue slashed its positions in Amazon, Square, PayPal, Tesla, Shopify, Peloton, Zillow and Facebook.
Corvex reduced its positions in T-Mobile, Amazon and Alphabet, while D1 cut its stakes in Amazon, Facebook, Snowflake, Microsoft and Carvana. Duquesne slashed its positions in Microsoft, T-Mobile, Carvana and Facebook, and Glenview reduced its stake in Facebook. Greenline cut its position in Expedia.
Lone Pine sold some of its shares in Facebook, Amazon, Shopify and Adobe Systems, while Maverick slashed its positions in Facebook and Alphabet. Melvin Capital unloaded some of its stakes in Amazon, Expedia and Alphabet.
Point72 cut back its stakes in Amazon and Baidu, while Soroban reduced its positions in Amazon, Microsoft and Netflix. George Soros sold some of his stakes in Amazon and Walt Disney. TCI Fund Management unloaded some shares of Microsoft, and Temasek reduced its positions in Alibaba, Roblox, Did Global, Airbnb and Salesforce. Viking Global sold some of its shares of Amazon.
Third Point reduced its stake in Intel.
Exceptions
On the other hand, Adage added to its position in Tesla, while Appaloosa increased its position in Alphabet. Baillie Gifford added to its position in DoorDash, and Barometer Capital increased its positions in Apple and Alphabet and added a new position in Cisco Systems.
Bridgewater established new positions in Didi Global and Amazon and added to its stake in Alibaba. Coatue established new positions in Microsoft and Robinhood and added to its stakes in JD.com, Snap and Roblox.
Corvex established a position in Uber and added to its stakes in Salesforce, Microsoft, Facebook and Walt Disney. D1 established new positions in Robinhood and Netflix, while Duquesne added to its stakes in Alphabet, Expedia, Booking Holdings, DISH Network and Amazon.
Glenview added to its position in Uber, and Lansdowne added to its stake in Booking Holdings. Lone Pine added to its holdings in Twitter and Workday, while Melvin Capital established a new position in Square and added to its stakes in Snap and Facebook. Paulson added to his position in Didi Global, while Point72 added to its holdings in Twitter, Microsoft and Snap.
Soroban added to its stake in Facebook, while George Soros bought more shares of Salesforce, and Temasek bought more shares of Snowflake. Third Point added to its positions in Amazon and Alphabet, and Tiger Global added a new position in Robinhood and added to its stakes in Snowflake, DoorDash and Workday. Viking Global added to its stakes in Peloton and Snowflake.
