This Hedge Fund’s Picks Killed It in 2015; Check Out Its Picks For 2016

#3 Tableau Software Inc (NYSE:DATA)

– Shares Owned by Matrix Capital Partners (as of December 31): 3.0 million

– Value of Holding (as of December 31): $282.66 million

Moving on, Matrix Capital Partners increased its stake in Tableau Software Inc (NYSE:DATA) by 4% during the fourth quarter. Shares of Tableau Software Inc (NYSE:DATA) plunged 49.4% on February 5 after the company came out with its fourth quarter numbers. It declared a per share loss of $0.33 on revenue of $202.80 million versus analysts’ projection of EPS of $0.16 on revenue of $200.89 million. For the same quarter of the previous financial year, the company had reported EPS of $0.42 on revenue of $142.90 million. Though the company is one of the largest player in the data visualization space and the big data market is estimated to grow to nearly $50 billion by 2019, analysts are concerned that increasing competition in the space will reduce Tableau Software Inc’s market share. Ken Griffin’s Citadel Investment Group also increased its stake in the company (By 165% to 508,626 shares) during the fourth quarter.

#2 Workday Inc (NYSE:WDAY)

– Shares Owned by Matrix Capital Partners (as of December 31): 3.96 million

– Value of Holding (as of December 31): $315.56 million

Even though shares of Workday Inc (NYSE:WDAY) rose over 15% during the fourth quarter and Matrix Capital Partners increased its stake in the company by 16% during the same period, Workday Inc (NYSE:WDAY) remained the fund’s second largest equity holding at the end of December. Workday Inc (NYSE:WDAY) is another stock in Matrix Capital Partners’ equity portfolio that has suffered a major decline this year, down over 25% year-to-date. Being a provider of enterprise cloud applications, the company faces almost the same concerns as Tableau Software Inc. Margins of the company have been nearly flat since the past few quarters and it expects its sales growth to continue to decline. The company is expected to report its fourth quarter earnings early next week and analysts’ estimate it will be reporting a per share loss of $0.04 on revenue $319.63 million, compared to a per share loss of $0.06 on revenue of $226.30 million it had reported for the same period of the previous financial year.

#1 Netflix, Inc. (NASDAQ:NFLX)

– Shares Owned by Matrix Capital Partners (as of December 31): 4 million

– Value of Holding (as of December 31): $458.14 million

The value of Matrix Capital Partners’ holding in the company rose by over $45 million during the fourth quarter, despite the fund keeping its stake in the company unchanged during that period. That’s because Netflix, Inc. (NASDAQ:NFLX) was a star performer last year with its shares registering gains of over 150%. However, this year the stock has changed its trajectory and is trading down 17% year-to-date. Most of the upside that the stock saw last year was because investors applauded the company’s growth in both adding more subscribers and expanding to new geographical location. Ironically, this year the stock has plummeted because investors are raising concerns about the same things i.e. the vulnerability of Netflix, Inc.’s subscribers and the challenges it will face in expanding its services to new locations. Even analysts are worried about the high valuations the company currently trades at and the large amount of expenditure it will have to incur going forward due to rising content cost. Philippe Laffont‘s Coatue Management increased its stake in the company by 8% to 6.43 million shares during the fourth quarter.

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