Philippe Laffont’s Coatue Management Portfolio – Q2 2022 Update

This article is part of a series that provides an ongoing analysis of the changes made to Coatue Management’s 13F stock portfolio on a quarterly basis. It is based on Coatue’s regulatory 13F Form filed on 8/15/2022. The 13F portfolio value decreased ~40% from $13.67B to $8.26B this quarter. Recent 13F reports have shown around 70 individual stock positions in the portfolio. The largest five stakes are Tesla, Moderna, Rivian Automotive, Amazon.com, and JD.com. They add up to ~38% of the entire portfolio. Please visit our Tracking Philippe Laffont’s Coatue Portfolio series to get an idea of their investment philosophy and our previous update for the fund’s moves during Q1 2022.

Philippe Laffont was a telecom analyst at Tiger Management from 1996. He founded Coatue Management as a tech-focused long-short hedge fund in 1999 and is one of the most successful among the “tiger cubs”. To know more about Julian Robertson and his legendary Tiger Management, check out Julian Robertson: A Tiger in the Land of Bulls and Bears.

New Stakes:

Datadog, Inc. (DDOG), Veeva Systems (VEEV), UiPath Inc. (PATH), SoFi Technologies (SOFI), and Upstart Holdings (UPST): DDOG is a ~1% of the portfolio position purchased this quarter at prices between ~$82 and ~$157 and the stock currently trades at $90.94. The ~1% VEEV stake was established at prices between ~$153 and ~$216 and it is now at ~$167. PATH is a 0.93% of the portfolio position purchased at prices between ~$14 and ~$23 and it is now below the low end of that range at $12.75. The 0.93% SOFI stake was established at prices between $5.25 and $9.77 and it currently goes for $5.13. UPST is a 0.90% of the portfolio position purchased at prices between ~$28 and ~$114 and it currently trades well below that range at $20.54.

Equifax Inc. (EFX) and monday.com (MNDY): These two very small (less than ~0.65% of the portfolio each) stakes were established this quarter.

Stake Increases:

Amazon.com (AMZN): A large stake in AMZN was built in the 2009-2011 timeframe but was sold down next year. A similar stake build-up happened in H2 2013 at prices between ~$13 and ~$14. Next quarter saw a ~80% reduction at prices between ~$14 and ~$16. The stake has wavered. Recent activity follows. Q4 2021 saw a ~24% stake increase at prices between ~$155 and ~$185 while last quarter there was a ~45% selling at prices between ~$136 and ~$170. The stock is now at ~$116 and it is now at 5.29% of the portfolio.

JD.com (JD): JD.com is a ~5% of the portfolio position purchased in Q3 2021 at prices between ~$62 and ~$83. Last two quarters saw a ~55% reduction at prices between ~$43 and ~$88 while this quarter there was a ~75% increase at prices between ~$49 and ~$67. The stock currently trades at $49.52.

Enphase Energy (ENPH): ENPH is a 3.23% of the portfolio stake primarily built this quarter at prices between ~$138 and ~$216. The stock currently trades well above that range at $287.

Uber Technologies (UBER): UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently goes for $26.72. Coatue’s stake goes back to a funding round in 2018 when the valuation was ~$60B. This is compared to the current market cap of ~$44B. Q4 2019 & Q1 2020 saw the stake sold down by ~90% at prices between ~$21 and ~$41. The stake was rebuilt in the Q2 to Q4 2020 time period at prices between ~$23 and ~$55. Q1 2021 saw a roughly one-third selling at prices between ~$48 and ~$63. That was followed with a ~55% reduction in Q4 2021 at prices between ~$36 and ~$48. The stake was rebuilt last quarter at prices between ~$29 and ~$45. This quarter also saw a ~13% increase. The stake is now at 2.52% of the portfolio.

Alibaba Group Holding (BABA): The 2.27% BABA stake was built this quarter at prices between ~$81 and ~$120 and the stock is now just below that range at $80.45.

Lucid Group (LCID): LCID is a small 1.54% of the portfolio stake purchased during the last two quarters at prices between ~$14 and ~$46. It is now near the bottom of that range at $14.09.

KE Holdings (BEKE), Novavax Inc. (NVAX), Nikola Corp. (NKLA), and Pinterest, Inc. (PINS): These small (less than ~1.10% of the portfolio each) stakes were increased during the quarter.

Stake Decreases:

Tesla Inc. (TSLA): TSLA is currently the largest position at ~12% of the portfolio. It was purchased in Q1 2020 at prices between ~$28 and ~$60. Next quarter saw a ~40% selling at prices between ~$32 and ~$67. There was a stake doubling in Q3 2020 at prices between ~$81 and ~$148. The two quarters through Q1 2021 had seen a ~50% selling at prices between ~$130 and ~$293. There was a one-third selling in Q3 2021 at prices between ~$214 and ~$264 while next quarter saw a similar increase at prices between ~$258 and ~$410. The stock currently trades at ~$242. Last two quarters have seen only minor adjustments.

Moderna (MRNA): A small MRNA stake was purchased in Q1 2021 at prices between ~$109 and ~$186. There was a ~400% stake increase next quarter at prices between ~$130 and ~$235. Q4 2021 saw a ~30% reduction at prices between ~$226 and ~$369 while last quarter there was a ~60% stake increase at prices between ~$127 and ~$235. The stock currently trades at ~$121 and the stake is a top-three position at 9.86% of the portfolio.

Rivian Automotive (RIVN): RIVN is the third-largest position in the portfolio at ~6%. They had an IPO last November. Shares started trading at ~$100 and currently goes for $31.89. Coatue’s stake goes back to funding rounds starting from July 2020 when the valuation was ~$10B. This is compared to current valuation of ~$17B. There was a ~40% selling this quarter at prices between ~$20 and ~$47.

Endeavor Group Holdings (EDR): Endeavor Group Holdings had an IPO last April. Shares started trading at ~$25 and currently goes for $20.23. Coatue’s 4.22% of the portfolio stake was through a private placement prior to the IPO. There was a ~17% selling in Q3 2021 at prices between ~$23 and ~$29. That was followed with a ~18% reduction over the last two quarters at prices between ~$18 and ~$35. There was marginal trimming this quarter.

Note: They have a ~7% ownership stake in the business.

Meta Platforms (META), previously Facebook: META is a 4.16% of the portfolio position first purchased in Q3 2013 at prices between ~$24 and ~$51. The stake has wavered. Recent activity follows. There was a one-third stake increase in Q2 2021 at prices between ~$295 and ~$356. Next quarter saw a ~15% selling while last quarter there was a similar increase. There was a ~25% reduction this quarter at prices between ~$156 and ~$234. The stock currently trades at ~$139.

Microsoft Corporation (MSFT): MSFT is a 3.87% of the portfolio stake purchased in Q3 2021 at prices between ~$277 and ~$305. There was a ~90% stake increase next quarter at prices between ~$283 and ~$343. This quarter saw a ~35% reduction at prices between ~$242 and ~$315. The stock currently trades at ~$241.

Block, Inc. (SQ), previously Square: SQ is a 3.58% of the portfolio position first purchased in Q2 & Q3 2019 at prices between ~$62 and ~$82. The position has wavered. Recent activity follows. H2 2021 had seen a ~40% reduction at prices between ~$158 and ~$282. The stake was rebuilt last quarter at prices between ~$89 and ~$164. The stock currently trades at $55.78. This quarter saw a ~18% trimming.

Netflix, Inc. (NFLX): The 2.62% NFLX position is a very long term stake. It was established in 2012 at very low prices. The stake has wavered. H1 2018 saw a ~40% selling at prices between ~$210 and ~$410 while last quarter there was a ~55% stake increase at prices between ~$331 and ~$597. The stock is now at ~$239. This quarter saw a ~14% trimming.

Visa Inc. (V): The 1.51% of the portfolio stake in Visa was established in Q4 2021 at prices between ~$190 and ~$234 and it is now at ~$182. There was a ~75% reduction this quarter at prices between ~$189 and ~$228.

Snowflake Inc. (SNOW): SNOW is a 1.37% of the portfolio stake. They had an IPO last September. Shares started trading at $229 and currently goes for ~$173. Coatue’s original stake goes back to a third-party tender offer that closed in March 2020. The valuation per the Series G funding round around that time was ~$12.5B. This is compared to current valuation of ~$41B. There was a ~30% stake increase in Q1 2021 at prices between ~$209 and ~$314 while the next three quarters saw a ~60% selling at prices between ~$188 and ~$402. There was a ~25% stake increase last quarter at prices between ~$167 and ~$332. This quarter saw a ~70% selling at prices between ~$113 and ~$241.

PayPal Holdings (PYPL): The ~1% PYPL stake was built in H1 2016 at prices between ~$31 and ~$37. The stock has wavered. Recent activity follows. Q3 2021 saw a ~22% reduction at prices between ~$259 and ~$309. Last three quarters have seen another ~58% selling at prices between ~$70 and $272. The stock is now at $87.18.

Sea Limited (SE): SE is a 0.75% of the portfolio position built in H2 2019 at prices between ~$28 and ~$40. H1 2020 saw a ~45% selling at prices between ~$38 and ~$110. That was followed with another ~40% selling over the two quarters through Q3 2021 at prices between ~$202 and ~$353. This quarter saw another ~60% reduction at prices between ~$57 and ~$133. The stock currently trades at $55.29.

DoorDash (DASH): DASH is now a 0.73% of the portfolio stake. They had an IPO in December 2020. Shares started trading at ~$165 and currently goes for $50.52. Coatue’s stake goes back to funding rounds from August 2018 when the valuation was ~$4B. This is compared to current valuation of ~$15B. There was a ~70% selling in Q4 2021 at prices between ~$144 and ~$246 while last quarter saw a similar increase at prices between ~$76 and ~$145. The zig-zag trading pattern continued this quarter: ~80% reduction at prices between ~$58 and ~$127.

Roblox Corp. (RBLX): Roblox had an IPO last March. Shares started trading at ~$69.50 and currently goes for $36.41. The 2.25% stake was acquired at prices between ~$64 and ~$100. Last quarter saw a ~60% selling at prices between ~$70 and ~$135 while this quarter there was a similar increase at prices between ~$37 and ~$99.

NVIDIA Corp. (NVDA): NVDA is now a minutely small 0.09% of the portfolio stake. Q4 2021 had seen a ~200% stake increase at prices between ~$197 and ~$334. Last quarter saw a ~45% selling at prices between ~$213 and ~$301. The position was sold down this quarter at prices between ~$145 and ~$274. The stock is now at ~$125.

DocuSign Inc. (DOCU), Peloton Interactive (PTON), and XPeng Inc. (XPEV): These very small (less than ~1% of the portfolio each) positions were reduced during the quarter.

Kept Steady:

Walt Disney (DIS): DIS is a 3.54% of the portfolio stake. A huge position was built in Q2 2020 at prices between ~$94 and ~$125. The next two quarters also saw minor increases. Q1 2021 saw a ~45% selling at prices between ~$163 and ~$202. There was another similar reduction last quarter at prices between ~$129 and ~$158. The stock currently trades at ~$97.

Zillow Group (Z): The 1.17% Zillow stake was built in H2 2020 at prices between ~$60 and ~$140. Q4 2021 saw a ~72% selling at prices between ~$53 and ~$104 while last quarter there was a similar increase at prices between ~$46 and ~$65. The stock is now at $29.48.

GitLab Inc. (GTLB): GitLab had an IPO in October 2021. Shares started trading at ~$104 and currently goes for $51.22. Coatue’s stake goes back to a Series E funding round when the valuation was ~$2.75B. The current valuation is ~$6.75B. There was a ~18% trimming last quarter.

Note: They have a ~11% ownership stake in GitLab.

Paramount Global (PARA), previously ViacomCBS: The small 0.65% PARA stake was primarily built last quarter at prices between ~$28 and ~$39. The stock currently trades well below that range at $19.62.

Bath & Body Works (BBWI), previously L Brands, BioNTech SE (BNTX), Broadcom Inc. (AVGO), CrowdStrike Holdings (CRWD), and Palo Alto Networks (PANW): These small (less than ~2% of the portfolio each) stakes were kept steady this quarter.

The rest of the stakes in the portfolio are minutely small. They are Agora, Inc. (API), AMC Entertainment (AMC), Beyond Meat (BYND), Carvana (CVNA), Confluent, Inc. (CFLT), DexCom, Inc. (DXCM), Dingdong (Cayman) (DDL), GameStop (GME), GDS Holdings (GDS), Ginkgo Bioworks (DNA), Grab Holdings (GRAB), HashiCorp Inc. (HCP), Hertz Global (HTZ), Huazhu Group, Kanzhun Ltd. (BZ), Li Auto (LI), MercadoLibre (MELI), Peloton Interactive (PTON), Pinduoduo (PDD), QuantumScape (QS), Ribbit LEAP (LEAP), RingCentral (RNG), Shopify (SHOP), Singular Genomics (OMIC), Snap Inc. (SNAP), Stitch Fix Inc. (SFIX), Sunrun (RUN), Synaptics (SYNA), Trip.com (TCOM), Victoria’s Secret (VSCO), Williams-Sonoma (WSM), Workday (WDAY), and Zoom Video (ZM).

Below is a spreadsheet that shows the changes to Philippe Laffont’s Coatue Management 13F long portfolio holdings as of Q2 2022: