Google and Facebook Are Being Deserted By Hedge Funds
In the ending three months last year Appaloosa Management of billionaire David Tepper more than doubled its stake in Apple Inc. and pretty much doubled the holdings it had of Facebook Inc.
Appaloosa has reported of having shares in Apple valuing at $777 million on December 31 that denoted to 7.4% of the hedge fund firm’s stock holdings in US. Later on, Tepper added to his stake in Facebook which is his second-biggest position amounting to more than 2 million shares. At the end of the fourth quarter, the position was valued at $976 million.
As far as the FAANG stocks are concerned, they have had a mixed performance this year. Amazon.com Inc. and Netflix Inc. have grown whereas Apple is down by 1%.
Other big fish of the industry anticipate a healthy growth of the two tech giants. Tiger Global Management of Chase Coleman boosted its position in Facebook. Meanwhile, Moore Capital Management belonging to Louis Bacon added 900,000 shares of Apple and as a result increasing its holding to about $200 million as per filings.
A $900 million wager was added to Amazon by Stephen Mandel’s Lone Pine Capital that shook up to 770,000 shares in the 2017 fourth quarter. The online retailer takes up about 5% of the hedge fund’s U.S. stock holding. A $625 million stake was also initiated by the hedge fund firm in Alphabet that resulted in buying up over 598,000 shares in the fourth quarter. At the same time, it lessened its position in Facebook by selling 632,000 shares of the company.
Some of the prominent hedge funds are stepping back from FAANGs in the fourth quarter. Coatue Management of Philippe Laffont who was riding the FAANG wave last, brought the value of its holding to $730 million by selling its 2.84 million shares of Apple as of December 31st.
The new iPhoneX was called groundbreaking by Laffont in September but since then its sales have dwindled. According to the regulatory filings Wednesday, the firm brought down its Facebook position by 1.71 million shares.