The recent 10% rally in the S&P 500 bypassed some of the world’s largest equity hedge funds, according to a report by Bloomberg, with many missing out on boosting returns by failing to ramp up bullish bets in Q3.
Having incurred heavy losses earlier in the year, several big-name firms, including Chase Coleman’s Tiger Global Management and Lee Ainslie’s Maverick Capital, made relatively modest additions to their portfolios during the third quarter and also continued to reduce their largest holdings.
Tiger Global, on pace for its worst year on record with a loss of 54.6% through October, added
Just five new companies were added Tiger Global’s US holdings with the fund, which was down 54.6% at the end of October, on course to record it worst ever annual loss. The hedge fund also exited 14 stocks in Q3.
Maverick meanwhile, added 183 new stocks, although most of those positions were worth less than $500,000 each, with the firm’s biggest purchase being a $120 million stake in chemicals specialist Avantor Inc.
After slashing positions earlier in the year, Coatue Management founder Philippe Laffont last month revealed that his firm was still holding 70% to 80% of its assets in cash. The firm’s biggest Q3 purchase was a $178 million stake in semiconductor equipment supplier Lam Research Corp. The firm did add 16 new stock holdings in Q3, all valued at less than $50 million.
