Tracking Philippe Laffont's Coatue Management Portfolio - Q3 2021 Update
Summary
- Philippe Laffont’s 13F portfolio value decreased from $25.82B to $24.58B this quarter.
- Coatue Management increased Kanzhun, Marqeta, JD.com, and Confluent while decreasing Amazon.com and dropping L Brands.
- The largest three positions are Moderna, DoorDash, and Snowflake and they add up to ~22% of the portfolio.
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This article is part of a series that provides an ongoing analysis of the changes made to Coatue Management’s 13F stock portfolio on a quarterly basis. It is based on Coatue’s regulatory 13F Form filed on 11/15/2021. The 13F portfolio value decreased ~5% from $25.82B to $24.58B this quarter. Recent 13F reports have shown a total of around 70 individual stock positions in the portfolio. The largest five stakes are Moderna, DoorDash, Snowflake, Walt Disney, and Tesla. They add up to ~30% of the entire portfolio. Please visit our Tracking Philippe Laffont’s Coatue Portfolio series to get an idea of their investment philosophy and our previous update for the fund’s moves during Q2 2021.
Philippe Laffont was a telecom analyst at Tiger Management from 1996. He founded Coatue Management as a tech-focused long-short hedge fund in 1999 and is one of the most successful among the "tiger cubs". To know more about Julian Robertson and his legendary Tiger Management, check out Julian Robertson: A Tiger in the Land of Bulls and Bears.
New Stakes:
Microsoft Corporation (MSFT), and Blend Labs (BLND): These are the new positions this quarter. MSFT is a 1.19% of the portfolio stake purchased at prices between ~$277 and ~$305 and the stock currently trades well above that range at ~$336. BLND had an IPO in July. Shares started trading at ~$21 and currently goes for $7.34. Coatue’s stake goes back to a funding round in January 2021.
Note: They have a ~5.4% ownership stake in Blend Labs.
Stake Increases:
Kanzhun Limited (BZ), Marqeta Inc. (MQ) , JD.com (JD), Confluent Inc. (CFLT), and Dingdong Cayman (DDL): These five stakes saw large increases this quarter. BZ is a fairly large 3.31% of the portfolio stake built this quarter at prices between ~$29.50 and ~$39 and the stock currently trades at $34.88. The 2.49% MQ stake was built at prices between ~$22 and ~$30 and it is now well below that range at $17.17. JD.com is a 2.39% of the portfolio position purchased at prices between ~$62 and ~$83 and it currently trades at $70.07. The 1.68% CFLT stake was established at prices between ~$39 and ~$73 and it now goes for $76.24. The small 0.65% DDL stake was purchased at prices between ~$18 and ~$29 and it is now below that range at $16.17.
Roblox Corp. (RBLX): Roblox had an IPO in March. Shares started trading at ~$69.50 and currently goes for ~$103. The 2.25% stake was acquired at prices between ~$64 and ~$100. This quarter saw a ~13% stake increase.
Zoom Video (ZM): ZM is now a ~2% of the portfolio position. A fairly large stake was built in H1 2020 at prices between ~$67 and ~$260. The stake was sold down by ~55% in Q1 2021 at prices between ~$311 and ~$445. Last quarter saw a ~22% stake increase at prices between ~$289 and ~$395. There was a ~35% stake increase this quarter at prices between ~$257 and ~$401. The stock is now at ~$184.
Guardant Health (GH): GH is a 1.43% of the portfolio position. The stake was first purchased in Q2 2019 at prices between ~$67 and ~$91. The position has wavered. Q4 2019 saw a ~150% stake increase at prices between ~$62 and ~$83 while Q2 & Q3 2020 saw a ~50% selling at prices between ~$60 and ~$112. Last two quarters had seen a ~140% stake increase at prices between ~$110 and ~$179. The stock currently trades at ~$100. This quarter also saw a minor ~5% increase.
Stake Decreases:
Moderna (MRNA): A small 0.90% MRNA stake was purchased in Q1 2021 at prices between ~$109 and ~$186. There was a ~400% stake increase last quarter at prices between ~$130 and ~$235. The stock currently trades at ~$254 and the stake is now the largest position at 9.47% of the portfolio. This quarter saw a minor ~2% trimming.
DoorDash (DASH): DASH is a large (top three) 7.92% of the portfolio stake. They had an IPO last December. Shares started trading at ~$165 and currently goes for ~$149. Coatue’s stake goes back to funding rounds from August 2018 when the valuation was at $4B. This is compared to current market cap of ~$51B. There was a ~10% stake increase over the last two quarters while this quarter saw a minor ~2% trimming.
Snowflake Inc. (SNOW): SNOW is a large 4.81% of the portfolio stake. They had an IPO last September. Shares started trading at $229 and currently goes for ~$339. Coatue’s original stake goes back to a third-party tender offer that closed in March 2020. The valuation per the Series G funding round around that time was ~$12.5B. This is compared to current market cap of ~$104B. There was a ~30% stake increase in Q1 2021 at prices between ~$209 and ~$314 while the last two quarters saw a ~25% selling at prices between ~$188 and ~$324.
Walt Disney (DIS): DIS is a large (top five) ~4% of the portfolio stake. A huge position was built in Q2 2020 at prices between ~$94 and ~$125. The next two quarters also saw minor increases. Q1 2021 saw a ~45% selling at prices between ~$163 and ~$202. That was followed with a ~4% trimming last quarter. The stock currently trades at ~$155. There was marginal trimming this quarter.
Tesla Inc. (TSLA): TSLA is a large (top five) 3.55% of the portfolio position. It was purchased in Q1 2020 at prices between ~$85 and ~$180. Next quarter saw a ~40% selling at prices between ~$95 and ~$200. There was a stake doubling in Q3 2020 at prices between ~$242 and ~$443. The two quarters through Q1 2021 had seen a ~50% selling at prices between ~$390 and ~$880. The stock currently trades at ~$1057. There was a one-third selling this quarter at prices between ~$643 and ~$791.
Meta Platforms (FB), previously Facebook: FB is a 3.38% of the portfolio position first purchased in Q3 2013 at prices between ~$24 and ~$51. The stake has wavered. Recent activity follows. H1 2020 saw a ~42% selling at prices between ~$150 and ~$240. Q3 2020 saw a ~15% stake increase while the next two quarters saw similar trimming. There was a one-third stake increase last quarter at prices between ~$295 and ~$356. The stock currently trades at ~$336. This quarter saw a ~15% trimming.
PayPal Holdings (PYPL): The ~3% PYPL stake was built in H1 2016 at prices between ~$31 and ~$37. The stock has wavered. Recent activity follows. H1 2020 saw a ~130% stake increase at prices between ~$90 and ~$175 while in Q1 2021 there was a ~60% selling at prices between ~$227 and ~$305. That was followed with a ~27% stake increase last quarter at prices between ~$240 and ~$294. This quarter saw a ~22% reduction at prices between ~$259 and ~$309. The stock is now at ~$189.
Block, Inc. (SQ) previously Square: SQ is a ~3% of the portfolio position built in Q2 & Q3 2019 at prices between ~$62 and ~$82. Next quarter saw a ~50% reduction at prices between ~$60 and ~$70. Last year saw consistent buying every quarter at prices between ~$40 and ~$240. There was a ~37% selling in Q1 2021 at prices between ~$202 and ~$277 while last quarter there was a ~18% stake increase at prices between ~$197 and ~$273. This quarter saw a roughly one-third reduction at prices between ~$234 and ~$282. The stock currently trades at ~$162.
Amazon.com (AMZN): A large stake in AMZN was built in the 2009-2011 timeframe but was sold down next year. A similar stake build-up happened in H2 2013 at prices between ~$260 and ~$280. Next quarter saw a ~80% reduction at prices between ~$280 and ~$315. The stake has wavered. Recent activity follows. There was a ~20% selling in Q2 2020 at prices between ~$1920 and ~$2880 while the last two quarters saw a stake doubling at prices between ~$3094 and ~$3504. There was a ~50% reduction this quarter at prices between ~$3188 and ~$3731. The stock is now at ~$3334 and it is now a at 2.88% of the portfolio.
Sea Limited (SE): SE is a 2.86% of the portfolio position built in H2 2019 at prices between ~$28 and ~$40. H1 2020 saw a ~45% selling at prices between ~$38 and ~$110. That was followed with another ~40% selling over the last two quarters at prices between ~$202 and ~$353. The stock currently trades at ~$224.
Endeavor Group Holdings (EDR): Endeavor Group Holdings had an IPO in April. Shares started trading at ~$25 and currently goes for $34.89. Coatue’s 2.43% of the portfolio stake was through a private placement prior to the IPO. There was a ~17% selling this quarter at prices between ~$23 and ~$29.
Uber Technologies (UBER): UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently goes for $41.93. Coatue’s stake goes back to a funding round in 2018 when the valuation was at ~$60B. This is compared to the current market cap of ~$78B. Q4 2019 & Q1 2020 saw the stake sold down by ~90% at prices between ~$21 and ~$41. The stake was rebuilt in the Q2 to Q4 2020 period at prices between ~$23 and ~$55. Q1 2021 saw a roughly one-third selling at prices between ~$48 and ~$63. The stake is now at 2.32% of the portfolio. This quarter saw a ~5% trimming.
Netflix Inc. (NFLX): The 2.31% NFLX position is a very long term stake. It was established in 2012 at very low prices. The stake has wavered. Last major activity was in H1 2018 when there was a ~40% selling at prices between ~$210 and ~$410. The stock is now at ~$602. This quarter saw minor trimming.
Twilio Inc. (TWLO): TWLO is a 2.27% of the portfolio stake purchased in Q1 2021 at prices between ~$315 and ~$444. There was a ~350% stake increase last quarter at prices between ~$281 and ~$401. The stock currently trades below those ranges at ~$263. This quarter saw a ~3% trimming.
Zillow Group (Z): The 2.27% Zillow stake was built in H2 2020 at prices between ~$60 and ~$140. The stock is now near the low end of that range at $63.85. There was a ~12% trimming over the last three quarters.
Anaplan, Inc. (PLAN), BioNTech SE (BNTX), CrowdStrike Holdings (CRWD), Insulet Corp (PODD), Lam Research (LRCX), Nikola Corp. (NKLA), Nuance Communications (NUAN), NVIDIA Corp. (NVDA), Oscar Health (OSCR), Peloton Interactive (PTON), Shopify (SHOP), Sunrun Inc. (RUN), and XPeng Inc. (XPEV): These small (less than ~2% of the portfolio each) stakes were reduced during the quarter.
Kept Steady:
UiPath (PATH): UiPath had an IPO in April. Shares started trading at ~$69 and currently goes for $43.13. Coatue’s 2.43% of the portfolio stake goes back to the Series D funding round in 2019 when the valuation reached ~$7B. The current valuation is ~$23B.
DiDi Global (DIDI): DIDI had an IPO in June. Shares started trading at ~$14 and currently goes for $4.98. Coatue’s 1.23% of the portfolio position goes back to funding rounds that started with a Series D in 2015 when the valuation was ~$9B. The current market capitalization is at ~$24B.
Agora, Inc. (API): API is a 1.13% of the portfolio position built in Q4 2020 at prices between ~$35 and ~$48. There was a ~5% trimming next quarter. The stock currently trades at $16.21.
Note: Regulatory filings since the quarter ended show them owning 13.2M shares (3.8% of business) of Agora. This is compared to 9.56M shares in the 13F report.
Bath & Body Works (BBWI) previously L Brands, Broadcom Inc. (AVGO), Global Payments (GPN), Pinterest Inc. (PINS), and RLX Technology (RLX): These small (less than ~1.2% of the portfolio each) stakes were kept steady this quarter.
The rest of the stakes in the portfolio are minutely small. They are 3D Systems (DDD), Absci Corporation (ABSI), Bill.com Holdings (BILL), Boeing Company (BA), Caribou Sciences (CRBU), CCC Intelligent Solutions (CCCS), CureVac NV (CVAC), DexCom Inc. (DXCM), Doximity (DOCS), GrafTech International (EAF), Intellia Therapeutics (NTLA), KE Holdings (BEKE), Li Auto (LI), Lightspeed (LSPD), Lucid Group (LCID), Macerich (MAC), MSD Acquisition (MSDA), QuantumScape (QS), Remitly Global (RELY), Ribbit LEAP (LEAP), Robinhood Markets (HOOD), Singular Genomics (OMIC), Snap Inc. (SNAP), Stitch Fix, Inc. (SFIX), Stratasys (SSYS), Sunlight Financial Holdings (SUNL), ViacomCBS (VIAC), and Victoria’s Secret (VSCO).
Note: Regulatory filings since the quarter ended show them owning 1.84M shares (7.4% of business) of Toast (TOST) and 1.24M shares (9.99% of business) of GitLab (GTLB).
Below is a spreadsheet that shows the changes to Philippe Laffont's Coatue Management 13F long portfolio holdings as of Q3 2021:
Source: John Vincent. Data constructed from Coatue Management’s 13F filings for Q2 2021 and Q3 2021.
This article was written by
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, LCID, LEAP, PYPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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