The latest Top Technology, Media and Telecom Hedge Fund list has been released, revealing that the top TMT Funds now manage $73 billion in equity assets, allocating $48 billion, or 66% of their equity assets to TMT stocks. The Top 50 TMT Hedge Fund List is once again led by Philippe Laffont's Coatue Capital. Coatue Capital reported $6.8 billion in TMT equity holdings, allocating 47% of its overall assets to Tech & Telecom stocks and 29% to media stocks. Coatue's top TMT holdings include Equinix Inc (EQIX), CBS Corp (CBS), Time Warner Inc (TWX) and Apple Inc (AAPL).
Number 2 on this quarter's list is ValueAct Capital Management with $5.4 billion in TMT assets, up from the $4.5 billion in TMT assets that ValueAct reported at the end of the last quarter. 55% of the San Francisco-based firm's equity assets are now allocated to the TMT sector, as compared to 51% last quarter. ValueAct Capital's top TMT holdings are for the most part concentrated in three very large portfolio holdings, including equity stakes in Microsoft Corp (MSFT), Motorola Inc (MSI) and Adobe Systems Inc (ADBE).
Moving up a spot to Number 3 on this list is Alkeon Capital Management with $3.1 billion in TMT assets. Takis Sparaggis' hedge fund allocated nearly 70% of its equity assets to TMT stocks. Sparaggis, who now has more than twenty years of investment experience, joined the investment community in 1993 and launched Alkeon Capital in 2002, when he spun the firm off from CIBC Oppenheimer. Alkeon's top TMT holdings include QUALCOMM Inc (QCOM), Google Inc (GOOG) and Synopsys (SNPS). Like Coatue Capital, Alkeon also likes CBS Corp (CBS), allocating $141 million to the media giant.
Once again, the Top 50 TMT Hedge Funds list experienced a fair amount of turnover, as 15 hedge funds on this quarter's list were not among the top 50 during the last ranking. Among the notable newcomers is William C. Martin's Raging Capital Management. Martin's Princeton, NJ-based firm is a small- to mid-cap public equity focused hedge fund manager that has been known to employ shareholder activist tactics.
Ranking Methodology: The Top TMT Hedge Fund rankings are compiled on a quarterly basis using hedge fund firms' overall U.S. equity assets under management. 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 companies. To view the Top TMT Hedge Fund list in its entirety, please visit Hedge Tracker's Hedge Fund Portal.
Disclosure: I am long MSFT.