Hedge funds drop Netflix shares, other platforms' stocks, as tech sales continue
Fund managers are reevaluating tech companies that flourished after the pandemic began in 2020
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Several hedge funds sold all their shares of streaming giant Netflix prior to the company reporting in March its first loss of subscribers in more than 10 years.
Securities fillings released Monday revealed that Tiger Global Management, Winslow Capital Management, Scopus Asset Management and other hedge funds dumped the entirety of their Netflix shares. The streaming company's stock price has fallen 69% for the year to date.
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In this photo illustration, the logo of Netflix is displayed on a laptop screen and on a smart phone screen in Tehatta, Nadia, West Bengal, India on October 13, 2020. (Photo Illustration by Soumyabrata Roy/NurPhoto / Getty Images)
This comes as fund managers reexamine technology companies that flourished after the coronavirus pandemic began in 2020 and helped push the S&P 500 to record heights.
Now the S&P 500 is suffering a nearly 16% decline for the year to date. And the Russell 1000 Growth index, which focuses more on technology companies, has seen a dip of nearly 25% over the same time span.
Hedge fund Light Street sold 7,960 shares in Netflix and all 149,025 of its shares in Facebook's parent company, Meta. The fund also dropped nearly half of its shares in Google's parent company, Alphabet, and cut its stake in Amazon.com by 10% in the quarter ending in March, according to filings.
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A sign is posted in front of Meta headquarters on April 28, 2022 in Menlo Park, California. (Photo by Justin Sullivan/Getty Images)
Hitchwood Capital Management LP sold all of its 390,000 shares of Meta while Melvin Capital sold all 850,000 of its shares of the company. Meta's shares are down 40.5% for the year.
D1 Capital Partners knocked its stake in Amazon down to 198,433 shares, a 22% decrease.
But despite the shift away from technology investments, some hedge funds increased their shares in media companies.
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Farallon Capital Management purchased 698,195 shares of Meta.
Coatue Management, meanwhile, increased its shares in Meta by 18.2% in the first quarter, bringing its total to 2,797,896. The fund also bought additional shares in Netflix and finished March with 1,438,956 shares in the streaming company, nearly 55% more than it had in December.
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Reuters contributed to this report.