One quarter after virtually every hedge fund loaded up on one or more of the six most influential tech stocks in the U. S stock market, Facebook, Apple, Amazon, Netflix and Google – a handful of stocks roughly responsible for half the market’s YTD gains – the love affair with FAANG continued, albeit far less passionately, with quite a few cases of “buyer’s remorse” emerging. According to an analysis by Reuters, closely-watched U. S. hedge fund managers were generally bearish on FAANGs in Q2, with eight prominent investors in aggregate cutting or liquidating 18 stakes in the companies, according to the latest 13-F dump.
Among those who had chilled on the tech space, were Coatue Management, Omega Advisors, Third Point, Tiger Global Management, Appaloosa Management, Paulson & Co, Soros Fund Management and Greenlight Capital, who in aggregate slashed 16 stakes, sold two stakes, increased six stakes, opened two new stakes, and maintained two positions in the so-called FAANG stocks in the three months ended June 30.
Dan Loeb’s Third Point increased its stake in GOOGL by 120,000 class A shares to 575,000 and increased its position in Facebook by 500,000 class A shares to 3.5 million as of June 30. On the other hand, Leon Cooperman’s Omega Advisors took a more bearish stance overall and cut its stake in Facebook by 26,700 class A shares to 236,200. It also cut its stake in Netflix by 12,700 shares to 65,000 shares and trimmed its stake in Amazon by 8,900 shares to 10,500 shares. Omega kept its stake in Alphabet of 158,835 class A shares unchanged.
This post was published at Zero Hedge on Aug 14, 2017.