This Is What Hedge Funds Bought And Sold In Q3: Complete 13F Summary

This Is What Hedge Funds Bought And Sold In Q3: Complete 13F Summary

It was already well-known that many hedge funds got mangled on several occasions in the third quarter – most notably as a result of their high gross and net exposure to China during the Evergrande/property crisis – before getting hammered by the VaR shock and other cross-asset fireworks in October and other Q4 months. And, as discussed previously, even though the S&P kept rising for much of the quarter, hedge funds had no choice but to reduce gross leverage as single-name stock picking became extremely challenging, if not painful, as historical correlations broke apart.

That probably explains why institutional investors increased the amount of ETFs in their portfolios in the third quarter, while decreasing their exposure to single stocks, with consumer discretionary and industrial sectors taking the biggest hit, Bloomberg reported today after the end of the latest 13F filing deadline.

The last two weeks of September before the filing deadline saw an increase in ETF volume amid a number of events affecting the market including Evergrande and the Chinese property bubble, central bank decisions from the Fed, BoE and others, a natural gas shortage and the end the U.S. government’s fiscal year (ETFs are often used by funds as way to express macro views).

Overall, investors increased their ETF holdings by 1.4% in 3Q with the SPY (SPDR S&P 500) ETF and VOO (Vanguard 500 Index Fund) ETF the two most added ETFs in terms of total market cap. Meanwhile, holdings in consumer discretionary stocks dropped by 0.4%.

In the single-name space, Alibaba and Amazon.com were the biggest aggregate sales in the sector. Investors cut holdings of industrial stocks by 0.4%, with Fedex Corp. and Union Pacific tallying up the biggest sales.

Shifts to ETFs and selling of certain Chinese and tech names notwithstanding, here are some of the main themes observed in Q3 courtesy of Bloomberg:

Chinese shares were a mixed bag for firms as the companies face heightened scrutiny. Philippe Laffont’s Coatue increased its positions in Kanzhun, the owner of a Chinese online recruitment platform, and Beijing-based JD.Com. Meanwhile, Lee Ainslie’s Maverick Capital exited its position in Alibaba, which lost about a third of its value this year.

George Soros’s family office boosted its bets on real estate and financial stocks during the period, while the value of its U.S. equity portfolio dipped to less than $5 billion. The firm disclosed new positions in Hill-Rom Holdings, MGM Growth Properties, JPMorgan and Goldman Sachs.

Not all firms added to financial stocks. Viking Global exited its position in Bank of America, a stake that was valued at $295.8 million as of June 30. Andreas Halvorsen’s firm made a few big bets in the quarter, including a stake worth $721 million in restaurant chain McDonald’s. Others who were loving McDonald’s included Melvin Capital and Balyasny.

Tiger Global and D1 Capital were among the names that listedRobinhood and Warby Parker among top new buys in the quarter. The online broker and eyeglass maker each made their public debuts in the period. Both names were actually companies that Tiger Global and D1 Capital had backed pre-IPO, a common theme as funds delve deeper into private wagers.

Warren Buffett’s Berkshire Hathaway ended up cutting back on two of its payment bets — Visa and Mastercard– as well as two of its recent pharma bets — Bristol-Myers and AbbVie.

Dan Sundheim’s D1 Capital and Andreas Halvorsen’s Viking Global Investors both significantly boosted their holdings in exercise-equipment maker Peloton in the third quarter, ahead of this month’s 48% plunge. D1 padded its stake in New York-based Peloton by almost 75%, making it the firm’s sixth-biggest shareholder. Viking increased  its position by more than 10-fold, becoming the seven-largest investor. Each of the hedge funds held stakes worth about $500 million at the end of September. Peloton plummeted the most on record on Nov. 5, after the company cut its annual revenue forecast and lowered its projections for subscribers and profit margins.

Bill Ackman’s Pershing Square Capital Management LP exited Agilent Technologies and boosted its holdings of Chipotle Mexican Grill Inc. in the third quarter. Lowe’s Cos. was the biggest holding, representing 22% of disclosed assets.

David Tepper’s Appaloosa almost doubled its stake in Macy’s adding 3.39 million shares for a stake worth $158.2 million.

Gabe Plotkin’s Melvin Capital increased its holding in Snap Inc., while paring Amazon.com. In Q4, SNAP crashed while AMZN surged.

Lone Pine Capital added to its holding of Twitter Inc. and trimmed its stake in Facebook parent Meta Platforms Inc.
McDonald’s Corp. was also a popular buy for hedge funds during the period, with Viking, Melvin and Balyasny establishing new positions

Soros increased its stake in IHS Markit Ltd. by about 80% to 2.44 million shares. IHS is up 2.5% Monday. Soros also took new positions in General Motors calls (1.53 million share equivalent) and Energy Select Sector SPDR Fund (XLE) calls (1.5 million share equivalent). GM shares are up over 19% since the end of 3Q while XLE has risen 12% over the same time frame.

Starboard Value took a new 11.6 million share position in Hunstman Corp. The industrial conglomerate is up 12% since the end of 3Q. Starboard is betting on small cap stocks and increased its position in the iShares Russell 2000 ETF by 159% to 1.5 million shares.

Jana Partners took a new 1.28 million share position in Valvoline Inc. The maker of motor oil advanced 3.3% on Monday. It also disclosed a new 1 million share position in analytics software platform Blacksky Technology Inc., which is trading up 6.4%.

Sachem Head Capital Management added 2.5 million shares of Dell Technologies Inc. to its portfolio. Dell is trading up by 1.2%. Sachem Head also took new positions in Bottomline Technologies Inc. (1.73 million shares, stock up 4.5% Monday), Lithia Motors Inc. (422,000 shares, up 1.1% Monday) and Post Holdings Inc (1.45 million shares, up 1.1% Monday).

Soroban Capital Partners sold its entire 27 million share stake in Altice USA Inc., which is down 0.7% on Monday. The fund increased the stake in its second-largest holding, CSX Corp. by 22% to 39.6 million shares. The railroad operator is little changed.

Finally, here is a detaioled breakdown of the most notable position changes among marquee hedge funds:

APPALOOSA

Top new buys: ALIT, WMT, OVV


Top exits: EMR, NFLX, BP, RDS/A, RDS/B


Boosted stakes in: M, GT, EQT, AR, GOOG, XOP, OXY, KSS, DHI, PHM


Cut stakes in: MU, AMZN, BABA, PCG, FB, ET, TWTR, UBER, FCX, XLE

BAUPOST GROUP

Top new buys: DBX, JOBY, LFG, OB


Top exits: AUR, CZOO


Boosted stakes in: SSNC, VRNT, TBPH


Cut stakes in: EBAY, PCG, WLTW, QRVO, INTC, IFF, PSTH

BERKSHIRE HATHAWAY

Top new buys: RPRX, FND


Top exits: MRK, LBTYK, OGN


Boosted stakes in: CVX


Cut stakes in: ABBV, CHTR, BMY, V, MA, MMC, USB

COATUE MANAGEMENT

Top new buys: MSFT, BLND, AFRM, BEKE, NTLA, ABSI, HOOD, TOST, CRBU, SUNL


Top exits: DDOG, CHPT, ROOT, AI, LMND, SKLZ, LAZR, COIN, MVIS, SOFI


Boosted stakes in: BZ, MQ, JD, CFLT, DDL, SNAP, GH, CVAC, LI, RBLX


Cut stakes in: AMZN, NUAN, RUN, SQ, PYPL, TSLA, SHOP, PTON, Z, FB

CORVEX MANAGEMENT

Top new buys: FIVN, UBER, USFD, SMFR, SLGC, SKYA, SRAD, APO


Top exits: DOMA, TWND, HZON, ROVR, CZOO, LIDR, XME, LGV


Boosted stakes in: ZNGA, CRM, MSFT, JPM, FB, DIS, CCEP


Cut stakes in: ATUS, EXC, TMUS, BLMN, AMZN, GOOGL

D1 CAPITAL PARTNERS

Top new buys: HOOD, WRBY, TXRH, NFLX, OPEN, PH, TPX, MASI, NTES, SGHT


Top exits: BKNG, U, CMG, DECK, TUYA, BHG, LTCH, BZ, FUTU, WDH


Boosted stakes in: EXPE, STNE, TMUS, DIS, BBWI, BLL, FTV, PTON, PODD, PINS


Cut stakes in: AMZN, FB, SNOW, EW, MSFT, CVNA, PCOR, DHR, CRWD, SQSP

DUQUESNE FAMILY OFFICE

Top new buys: CPNG, LYV, ZM, PRCT, OSCR, STNE, ABCL, FSLY, LAD, CFLT


Top exits: NFLX, CMI, GE, MA, V, USFD, CAT, GM, ON, BLDR


Boosted stakes in: GOOGL, EXPE, BKNG, DISH, OPCH, FTCH, COUP, AMZN, RETA


Cut stakes in: MSFT, TMUS, CVNA, PLTR, TECK, FB, FCX, INTU, PENN, SMAR

ELLIOTT INVESTMENT MANAGEMENT

Top new buys: SC, CTXS, HTA, VAL, APA, 1865300D


Top exits: EDR, SNAP, DBX, PINS, TTD, HRB


Cut stakes in: ARNC, FYBR, ETWO, BTU

GREENLIGHT CAPITAL

Top new buys: SLV, FREY, SNAX


Top exits: SPY, JOBY, SNX, OPAD, DNA, CCCS, APG, IONQ, XOS, UWMC


Boosted stakes in: TECK, ODP, BHF, LIVN, MYPS, SONO, GLD, CPRI, JACK, CHNG


Cut stakes in: CNXC, CC, REZI, FUBO, SATS, AER, EXPE, ADMP, AGCB, GPOR

ICAHN

Top new buys: SWX


Boosted stakes in: DAN, IEP


Cut stakes in: OXY

JANA PARTNERS

Top new buys: M, VVV, BKSY


Boosted stakes in: THS, VG, CONE


Cut stakes in: SPY, LH, EHC

LANSDOWNE

Top new buys: WRK, FSLR, CTRA, CF, AGI, CCJ


Top exits: LRCX, MU, AER, UAL, LUV, ENIA, TMUS, RBLX, SSO, UVXY


Boosted stakes in: NVT, ILMN, GE, TSM, ADI, BKNG, IEUR


Cut stakes in: FCX, CARR, ETN, VMC, AMAT, DAL, RYAAY, EGO, OTIS, WMG

MAVERICK CAPITAL

Top new buys: INST, CRBU, EHTH, SPIR, STZ, CCL, AAP, SHW, OLPX, PZZA


Top exits: BABA, AON, BECN, CZOO, TSM, HIMS, DGNS, SBUX, XMTR, KVSA


Boosted stakes in: V, WDAY, SE, ATVI, CRIS, LRCX, RCKT, NFLX, TWLO, DECK


Cut stakes in: CPNG, FB, LIVN, ALNY, ADSK, FLT, IFF, GOOG, CCK, MELI

MELVIN CAPITAL MANAGEMENT

Top new buys: AFRM, MAR, SQ, MCD, ASML, VSCO, WMG, CRL, BURL, OLPX


Top exits: V, JD, PYPL, LVS, ADSK, CRWD, NTES, TGT, UBER, SHOP


Boosted stakes in: SNAP, BILL, MA, BBWI, LYV, HLT, FB, DT, EFX, DDOG


Cut stakes in: AMZN, EXPE, FICO, GOOGL, ALGN, ATVI, USFD, VMEO, VAC, IAA

OMEGA ADVISORS

Top new buys: LVS


Top exits: FOE, CS, PNTM, CRBN, JWSM, ANAC, APSG


Boosted stakes in: CTRA, BHC, PFSI, WSC, GM, DMAC, VRT, SRGA, FLMN, ASPU


Cut stakes in: NAVI, MP, OCN, BBDC, TRN, FCRD, ABR

SOROBAN CAPITAL

Top new buys: RKLB, ALCC, LICY, CPAR, POND


Top exits: ATUS, DOMA, SPIR, ATIP, VYGG, ME, PAYO, SUNL, BGRY, TALK


Boosted stakes in: UNP, PLNT, WAB, MA, CSX, LOW, FB, V, KIND, ML


Cut stakes in: ADI, AMZN, MSFT, NFLX

SOROS FUND MANAGEMENT

Top new buys: HRC, JPM, UNH, CPNG, EQT, XLE, GS, HYZN, MTB, INTU


Top exits: OTIS, QS, CLVT, IFF, W, UPST, AXTA, TXN, S, NXPI


Boosted stakes in: INFO, NUAN, PPD, ARMK, CRM, ACN, GM, SYF, BKNG, VICI


Cut stakes in: FIGS, QQQ, ATVI, MGLN, ELAN, AMZN, DIS, LBRDK, GOOGL, XLU

STARBOARD VALUE 

Top new buys: HUN, CYXT, BRDS, ENFA, VPCC, TREB, DKDCA, BTTX, HCIC, CPAR


Top exits: IWN, KVSC, ROIV, STRC, OPAD, LILM, RBOT, SPIR, ROVR, GDEV


Boosted stakes in: IWM, AUS, MTAC, KVSB, LNFA, FVT, TWND, PLMI, PRPB, ACAH


Cut stakes in: MD, BOX, CTVA, IWR, ELAN, PZZA, ACM, MMSI, ON

TEMASEK HOLDINGS

Top new buys: ETWO, USIG, ONEM, BLND, POSH, DUOL, IRNT, HLTH, PATH, MNDY


Top exits: CTVA, SOFI, COPX, PICK, KREF, BIDU, TAL, BZ, EDU, MSFT


Boosted stakes in: GOVT, SCHP, GRCL, BGNE, SNOW, IAU, XME, FIXX, EWY, AFRM


Cut stakes in: BABA, INFO, RBLX, DIDI, ABNB, MA, DCT, NTLA, LCTU, CRM

TIGER GLOBAL

Top new buys: WRBY, HOOD, BLND, VTEX, MTTR, SPIR, TOST, BKSY, AVPT, ALCC


Top exits: TAL


Boosted stakes in: SNOW, SE, DASH, DDOG, OZON, WDAY, XM, SQ, OSCR, ONTF


Cut stakes in: RBLX, APO, PTON, JD, SPOT, YSG, UBER, CVNA, INTU, DESP

Tyler Durden
Tue, 11/16/2021 – 08:47

Share DeepPol