Philippe Laffont’s Coatue Management Portfolio – Q4 2021 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 2/14/2022. The 13F portfolio value decreased ~8% from $24.58B to $22.55B this quarter. Recent 13F reports have shown a total of around 70 individual stock positions in the portfolio. The largest five stakes are Rivian Automotive, Tesla, Moderna, Walt Disney, and Amazon.com. They add up to ~28% 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 Q3 2021.

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.

Stake Disposals:

UiPath (PATH): UiPath had an IPO last April. Shares started trading at ~$69 and currently goes for $21.59. Coatue’s position was sold this quarter at prices between ~$40 and ~$58. Their stake went back to the Series D funding round in 2019 when the valuation reached ~$7B. The current valuation is ~$16.50B.

Nuance Communications: The very small 0.64% of the portfolio stake in Nuance got eliminated as they got acquired by Microsoft (MSFT) in a transaction ($56 per share all-cash) that closed in early March.

New Stakes:

Rivian Automotive (RIVN): RIVN is by far the largest position in the portfolio at 16.20%. Rivian had an IPO last November. Shares started trading at ~$100 and currently goes for $50.24. Coatue’s stake goes back to funding rounds starting from July 2020 when the valuation was ~$10B. This is compared to current valuation of ~$48.5B.

Pfizer Inc. (PFE), Visa Inc. (V), Applied Materials (AMAT), and GitLab Inc. (GTLB): PFE is a 2.70% of the portfolio position purchased this quarter at prices between ~$41 and ~$61 and the stock currently trades at $51.77. The 2.16% of the portfolio stake in Visa was established at prices between ~$190 and ~$234 and it is now at ~$222. The 1.32% AMAT position was purchased at prices between ~$125 and ~$163 and the stock is currently at ~$132. GitLab had an IPO in October 2021. Shares started trading at ~$104 and currently goes for $54.45. Coatue’s stake goes back to a Series E funding round when the valuation was ~$2.75B. The current valuation is ~$8.5B.

Note: They have a ~14% ownership stake in GitLab.

Stake Increases:

Tesla Inc. (TSLA): TSLA is a large (top three) 6.93% of the portfolio position. It was purchased in Q1 2020 at prices between ~$85 and ~$180. Next quarter saw a ~40% selling at prices between ~$95 and ~$200. There was a stake doubling in Q3 2020 at prices between ~$242 and ~$443. The two quarters through Q1 2021 had seen a ~50% selling at prices between ~$390 and ~$880. There was a one-third selling last quarter at prices between ~$643 and ~$791 while this quarter saw a similar increase at prices between ~$775 and ~$1230. The stock currently trades at ~$1078.

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 ~$260 and ~$280. Next quarter saw a ~80% reduction at prices between ~$280 and ~$315. The stake has wavered. Recent activity follows. There was a ~20% selling in Q2 2020 at prices between ~$1920 and ~$2880 while the next two quarters saw a stake doubling at prices between ~$3094 and ~$3504. There was a ~50% reduction last quarter at prices between ~$3188 and ~$3731. This quarter saw a ~24% stake increase at prices between ~$3190 and ~$3696. The stock is now at ~$3260 and it is now a at 3.95% of the portfolio.

Kanzhun Limited (BZ): BZ is a fairly large 3.31% of the portfolio stake built last quarter at prices between ~$29.50 and ~$39 and the stock currently trades below that range at $24.91. There was a marginal increase this quarter.

Note: They have a ~7% ownership stake in Kanzhun Ltd.

Microsoft Corp. (MSFT): MSFT is a 2.94% of the portfolio stake purchased last quarter at prices between ~$277 and ~$305 and the stock currently trades at ~$308. There was a ~90% stake increase this quarter at prices between ~$283 and ~$343.

Lam Research (LRCX) and NVIDIA Corp (NVDA): The 2.74% of the portfolio LRCX stake saw a ~110% increase this quarter at prices between ~$544 and ~$727. The stock currently trades at ~$538. NVDA is a 1.54% position that saw a ~200% stake increase this quarter at prices between ~$197 and ~$334. The stock is now at ~$273.

BioNTech SE (BNTX) and KE Holdings (BEKE): These small (less than ~1.25% of the portfolio each) stakes were increased during the quarter.

Stake Decreases:

Moderna (MRNA): A small 0.90% 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. This quarter saw a ~30% reduction at prices between ~$226 and ~$369. The stock currently trades at ~$172 and the stake is a top-three position at 4.83% of the portfolio.

Walt Disney (DIS): DIS is a large (top five) ~4% 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. The stock currently trades at ~$137. Last few quarters have seen only minor adjustments.

Meta Platforms (FB), previously Facebook: FB is a 3.53% of the portfolio position first purchased in Q3 2013 at prices between ~$24 and ~$51. The stake has wavered. Recent activity follows. H1 2020 saw a ~42% selling at prices between ~$150 and ~$240. Q3 2020 saw a ~15% stake increase while the next two quarters saw similar trimming. There was a one-third stake increase in Q2 2021 at prices between ~$295 and ~$356. Last quarter saw a ~15% selling and that was followed with a ~3% trimming this quarter. The stock currently trades at ~$222.

Snowflake Inc. (SNOW): SNOW is a 3.15% of the portfolio stake. They had an IPO last September. Shares started trading at $229 and currently goes for around the same price. 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 at that time was ~$12.5B. This is compared to current market cap of ~$73B. There was a ~30% stake increase in Q1 2021 at prices between ~$209 and ~$314 while the last three quarters saw a ~60% selling at prices between ~$188 and ~$402.

Endeavor Group Holdings (EDR): Endeavor Group Holdings had an IPO last April. Shares started trading at ~$25 and currently goes for $29.52. Coatue’s 2.76% of the portfolio stake was through a private placement prior to the IPO. There was a ~17% selling last quarter at prices between ~$23 and ~$29. That was followed with a ~15% trimming this quarter.

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

Marqeta Inc. (MQ) , JD.com (JD), and Confluent Inc. (CFLT): The MQ stake was built last quarter at prices between ~$22 and ~$30 and it is now well below that range at $11.04. This quarter saw the position reduced to a minutely small stake at prices between ~$16 and ~$33. JD.com is a 2.22% of the portfolio position purchased last quarter at prices between ~$62 and ~$83 and it currently trades at $57.87. This quarter saw a ~12% trimming. The 2.19% CFLT stake was built last quarter at prices between ~$39 and ~$73 and it now goes for ~$41. There was a ~10% trimming this quarter.

Note: They have a 9.3% ownership stake in Confluent Inc.

PayPal Holdings (PYPL): The 2.17% PYPL stake was built in H1 2016 at prices between ~$31 and ~$37. The stock has wavered. Recent activity follows. H1 2020 saw a ~130% stake increase at prices between ~$90 and ~$175 while in Q1 2021 there was a ~60% selling at prices between ~$227 and ~$305. That was followed with a ~27% stake increase next quarter at prices between ~$240 and ~$294. Last quarter saw a ~22% reduction at prices between ~$259 and ~$309. The stock is now at ~$116. This quarter also saw a ~10% trimming.

Sea Limited (SE): SE is a 2.17% 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 last two quarters at prices between ~$202 and ~$353. The stock currently trades at ~$120. There was a marginal trimming this quarter.

Block, Inc. (SQ) previously Square: SQ is a ~2% of the portfolio position built in Q2 & Q3 2019 at prices between ~$62 and ~$82. Next quarter saw a ~50% reduction at prices between ~$60 and ~$70. Next year saw consistent buying every quarter at prices between ~$40 and ~$240. There was a ~37% selling in Q1 2021 at prices between ~$202 and ~$277 while next quarter there was a ~18% stake increase at prices between ~$197 and ~$273. Last quarter saw a roughly one-third reduction at prices between ~$234 and ~$282. The stock currently trades at ~$136. This quarter also saw a ~13% trimming.

DoorDash (DASH): DASH is now a 1.94% of the portfolio stake. They had an IPO in December 2020. Shares started trading at ~$165 and currently goes for ~$117. Coatue’s stake goes back to funding rounds from August 2018 when the valuation was ~$4B. This is compared to current market cap of ~$43B. There was a ~70% selling this quarter at prices between ~$144 and ~$246.

Roblox Corp. (RBLX): Roblox had an IPO last March. Shares started trading at ~$69.50 and currently goes for $46.24. The 2.25% stake was acquired at prices between ~$64 and ~$100. Last quarter saw a ~13% stake increase while this quarter there was a ~60% selling at prices between ~$70 and ~$135.

Uber Technologies (UBER): UBER had an IPO in Q2 2019. Shares started trading at ~$42 and currently goes for $35.68. Coatue’s stake goes back to a funding round in 2018 when the valuation was at ~$60B. This is compared to the current market cap of ~$73B. 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 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 this quarter at prices between ~$36 and ~$48. The stake is now at 1.10% of the portfolio.

Zoom Video (ZM): ZM is now a small 0.78% of the portfolio position. A fairly large stake was built in H1 2020 at prices between ~$67 and ~$260. The stake was sold down by ~55% in Q1 2021 at prices between ~$311 and ~$445. Next quarter saw a ~22% stake increase at prices between ~$289 and ~$395. There was a ~35% stake increase last quarter at prices between ~$257 and ~$401. This quarter saw a ~50% reduction at prices between ~$182 and ~$286. The stock is now at ~$117.

Zillow Group (Z): The 0.50% Zillow stake was built in H2 2020 at prices between ~$60 and ~$140. The stock is now at $49.29. This quarter saw a ~72% selling at prices between ~$53 and ~$104.

Twilio Inc. (TWLO): TWLO is now a minutely small position. It was a 2.27% of the portfolio stake purchased in Q1 2021 at prices between ~$315 and ~$444. There was a ~350% stake increase next quarter at prices between ~$281 and ~$401. The position was almost sold out this quarter at prices between ~$248 and ~$369. The stock currently trades at ~$165.

Agora Inc. (API), CrowdStrike Holdings (CRWD), Guardant Health (GH), Insulet Corp. (PODD), Peloton Interactive (PTON), Pinterest, Inc. (PINS), Shopify (SHOP), Sunrun Inc. (RUN), and XPeng Inc. (XPEV): These small (less than ~1.5% of the portfolio each) stakes were reduced during the quarter.

Kept Steady:

Netflix, Inc. (NFLX): The 2.49% NFLX position is a very long term stake. It was established in 2012 at very low prices. The stake has wavered. Last major activity was in H1 2018 when there was a ~40% selling at prices between ~$210 and ~$410. The stock is now at ~$375.

DiDi Global (DIDI): DIDI had an IPO last June. Shares started trading at ~$14 and currently goes for $2.50. Coatue’s 0.89% of the portfolio position goes back to funding rounds that started with a Series D in 2015 when the valuation was ~$9B. The current market capitalization is at ~$15B.

Dingdong Cayman (DDL): The small 0.50% DDL stake was built last quarter at prices between ~$18 and ~$29 and it is now well below that range at $3.55.

Anaplan, Inc. (PLAN), Bath & Body Works (BBWI), previously L Brands, Blend Labs (BLND), Broadcom Inc. (AVGO), and Global Payments (GPN): These small (less than ~1% of the portfolio each) positions were kept steady this quarter.

Note: Regulatory filings since the quarter ended show them owning 8.99M shares (4.1% of the business) of Blend Labs. This is compared to 11.24M shares in the 13F report.

The rest of the stakes in the portfolio are minutely small. They are Absci Corporation (ABSI), Activision Blizzard (ATVI), Affirm Holdings (AFRM), Alibaba Group Holding (BABA), Appian Corp. (APPN), Bill.com Holdings (BILL), Caribou Biosciences (CRBU), Datadog, Inc. (DDOG), DexCom Inc. (DXCM), Fastly, Inc. (FSLY), Futu Holdings (FUTU), HubSpot, Inc. (HUBS), Intellia Therapeutics (NTLA), Li Auto (LI), Lightspeed (LSPD), MSD Acquisition (MSDA), Nikola Corp. (NKLA), Oscar Health (OSCR), Pinduoduo (PDD), QuantumScape (QS), Remitly Global (RELY), Ribbit LEAP (LEAP), Singular Genomics (OMIC), Snap Inc. (SNAP), Stitch Fix, Inc. (SFIX), Sunlight Financial Holdings (SUNL), Taiwan Semi (TSM), Toast, Inc. (TOST), Trip.com (TCOM), Twitter, Inc. (TWTR), ViacomCBS (now Paramount Global (PARA)), and Victoria’s Secret (VSCO).

Below is a spreadsheet that shows the changes to Philippe Laffont’s Coatue Management 13F long portfolio holdings as of Q4 2021: