Dan Sundheim’s D1 Capital dumped high-growth tech stocks in the first quarter
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A securities filing Monday revealed that Dan Sundheim was a former hedge fund executive who allegedly lost large stakes on the sector’s tech sector in the first quarter. According to filings, Sundheim’s D1 Capital sold positions in JD.com, Carvana, and Shopify within the first three months 2022. The total value of these positions was more than $2 billion at December’s close. It was not clear when sales took place and the timing of those transactions likely played an important role in how the fund performed. The stock prices fell dramatically during the quarter. The value of D1’s equity portfolio fell from $16 billion to $8.5 billion in December to just $8.5 billion by March. This is most likely due to a mix of stock selling and market declines. Here are some other positions that D1 closed out that were worth at least $100 million each at the end of December: 10X Genomics Bath & Body Works Coupa Software Toast Tesla Block Even the stocks that D1 did hold on to were subject to major selling. For example, the fund sold more than 20% off its Amazon stake and almost 70% off its Disney stake. Microsoft, which D1 increased its stake by around 36% was one tech stock it did add to. This position was worth just above $1 billion as of March 31st. Cazoo, a British automotive retailer, increased its share by more than three times. It was worth around $100 million as of the close to the quarter’s end. D1 also purchased a $281 million stake in Atlassian software company. Automaker Rivian was one holding that could have had a significant impact on D1’s performance. D1’s stake in the company was reduced by half in the first quarter, despite the fact that there had been no sales activity. Rivian’s IPO lock-up expired in the first quarter. Sundheim’s reputation as an investor was built at Viking Global where he was chief investment officer. The fund made big bets last year on the reopening of stocks, including Expedia, now its top holding.
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