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Todd Walker
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Todd Walker is the Executive Director and Chief Strategist at HedgeTracker, where he is responsible for overseeing research, analytics and business development. He has particular expertise in investments that are popular among elite hedge fund managers, shareholder activists and... More
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  • Top Tech, Media & Telecom Hedge Funds Prefer Apple, Equinix, Pandora Media & Shutterfly 0 comments
    Apr 29, 2013 1:32 PM | about stocks: AAPL, AMZN, EBAY, EQIX, FB, GOOG, GRPN, INFA, INXN, LBTYK, P, PCLN, SFLY, SIRI, TIVO, TRIP, VRSN, YELP, YHOO

    The latest Top 50 Technology, Media and Telecom focused Hedge Fund list has been released, revealing that the top TMT Funds now have $66.4 billion in equity assets, allocating $45.1 billion, or 68% of their equity assets to TMT stocks.

    The Top 50 TMT Hedge Fund List is once again led by Philippe Laffont's Coatue Capital and Chase Coleman's Tiger Global Management. Both Laffont and Coleman are "Tiger Cubs", having refined their investment acumen under the tutelage of Tiger Management's Julian Robertson. Coatue Capital reported $5.7 billion in TMT equity holdings, accounting for 95% of its holdings, while Tiger Global reported nearly $3.5 billion in TMT holdings, accounting for 65% of its portfolio. Coming in at third on the list is John Scully and William E. Oberndorf's SPO Advisory Corp with $3.4 billion in TMT equity holdings, accounting for 54% of its portfolio.

    Not surprisingly, the most widely held stocks by the top 50 TMT Hedge Funds are Google Inc (NASDAQ:GOOG) and Apple Inc (NASDAQ:AAPL), which were held by 25 and 18 of the top 50 hedge funds, respectively. While Google was the most widely held, the top TMT hedge funds overall invested the most in Apple, reporting holdings of more than $2.5 billion in Apple's stock as of 12/31/2012. The top ten most widely held stocks are listed below:

      Top 10 TMT Fund Holdings
      (# HF Held By)(Holdings $MM)
    #1Google Inc25$1,928
    #2Apple Inc18$2,510
    #3Priceline.com (NASDAQ:PCLN)17$1,453
    #4eBay Inc (NASDAQ:EBAY)17$912
    #5Yahoo Inc (NASDAQ:YHOO)16$820
    #6Equinix Inc (NASDAQ:EQIX)15$1,560
    #7Amazon.com (NASDAQ:AMZN)15$1,007
    #8Facebook Inc (NASDAQ:FB)14$534
    #9Liberty Global (NASDAQ:LBTYK)12$2,259
    #10Sirius XM Radio (NASDAQ:SIRI)12$535

    The most notable entry at the top end of the list is networked data center provider Equinix Inc . With a market cap slightly above $10 billion, it is by far the smallest company among the top 8. 15 of the top TMT Hedge Funds allocated $1.56 billion to Equinix, suggesting that some smart money believes in its prospects. Laffont's Coatue Capital is the biggest fan of Equinix, as it held nearly $860M of the company's stock at the end of the fourth quarter.

    A number of mid-cap stocks were also widely held by the Top Technology, Media & Telecom Hedge Funds, as four mid-caps made the top 25. Leading the mid-caps is Pandora Media Inc (NYSE:P), which was held by 7 of the top TMT hedge funds.

      Top TMT Mid-Cap Holdings
      (# HF Held By)(Holdings $MM)
    #20Pandora Media7$464
    #21Groupon (NASDAQ:GRPN)7$399
    #22Verisign Inc (NASDAQ:VRSN)7$396
    #23Informatica Corp (NASDAQ:INFA)7$259
    #29Tripadvisor Inc (NASDAQ:TRIP)6$269

    Notably, a number of small-cap stocks managed to crack the top 30. The most popular small-cap was Shutterfly Inc (NASDAQ:SFLY), which was held by 8 of the top TMT Hedge funds, account for $125M in holdings. The top TMT focused holders of Shutterfly were NYC-based Jericho Capital and Berkeley Heights, NJ-based HHR Asset Management. The other small-caps among the top 30 attracted nearly $290M from the top TMT Hedge Funds:

      Top TMT Small-Cap Holdings
      (# HF Held By)(Holdings $MM)
    #16Shutterfly Inc8$125
    #25Tivo Inc (NASDAQ:TIVO)7$140
    #26Interxion Holding NV (NYSE:INXN)7$108
    #27Yelp Inc (NYSE:YELP)7$39

    Methodology:

    The Top TMT Hedge Fund rankings are compiled on a quarterly basis using hedge fund firms' 13-F filings with the SEC. The TMT list includes the top hedge funds that have more than 50% of their U.S. equity assets invested in U.S. listed Technology, Media and Telecom equities as of 12/31/2012. To view the Top TMT Hedge Fund list in its entirety, please visit Hedge Tracker's Hedge Fund Portal.

    Definitions:

    All holdings are as of 12/31/2012. Mid-Cap equities include U.S. listed stocks with market capitalizations between $2 billion and $10 billion, while Small-Cap equities include U.S. listed stocks with market capitalizations less than $2 billion.

    Disclosure: I am long FB, YHOO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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