13. Netflix (NFLX)
Number of Hedge Funds: 146 (2025Q4)
Number of Hedge Funds: 154 (2025Q3)
As of early March 2026, Netflix (NFLX) is experiencing a period of extreme institutional volatility. After a steep decline fueled by concerns over a potential acquisition of Warner Bros. Discovery, the stock has staged a dramatic recovery, leading to a massive divergence in “smart money” strategies.
1. Hedge Fund Activity: Aggressive Hedging & Leveraged Bets
While some headlines suggest a “dumping” of the stock, the 13F data reveals a more complex picture of massive, leveraged positioning:
- Ken Griffin’s Citadel: This powerhouse has shifted into an aggressive defensive-to-neutral stance. Citadel increased its Put positions by 140%, holding over $5.89 billion in protection. Simultaneously, it trimmed its Call options by 12%, signaling a belief that the stock may face continued turbulence despite its recent rally.
- D. E. Shaw: Took a contrary, bullish view by increasing its position by 49%, now holding a stake valued at over $1.08 billion.
- Steady Conviction: Ken Fisher (Fisher Asset Management) and Karthik Sarma (SRS Investment Management) have maintained their stakes, with Fisher increasing his by 1% and Sarma holding a massive $1.42 billion position (representing 14.99% of his total portfolio).
2. Analyst Upgrades & Investor Letter Sentiment
The narrative has shifted from “fear of acquisition” to “operational strength” following Netflix’s decision to drop the Warner Bros. Discovery bid:
- The “Warner Bros.” Rebound: On February 27, 2026, the stock surged 13.7% in a single day after officially dropping its pursuit of WBD. This move relieved investor fears regarding pricing and integration risks.
- Price Target Upgrades: Following strong Q4 results (325 million total subscribers), Freedom Capital Markets upgraded the stock to Buy, noting that the company beat estimates for both revenue and earnings.
- Investor Letter Support: Recent letters from Loomis Sayles and Sands Capital (February 2026) reiterated their structural investment thesis, focusing on Netflix’s dominance in the global streaming market despite regulatory scrutiny.
3. Insider Trading: Coordinated February Selling
The “Insider Roster” shows a wave of synchronized sales in early February 2026, as the stock recovered toward the $80–$90 range. This activity is consistent with executives liquidating shares following the year-end earnings cycle.
- Gregory Peters (Co-CEO): Executed multiple sales on February 10, 2026, offloading roughly 27,000 shares at prices between $82.74 and $84.40, totaling over $2.27 million.
- David Hyman (Chief Legal Officer): Sold 5,727 shares on February 9 at $81.06, totaling over $464,000.
- Cletus Willems (Chief Global Affairs Officer): Sold his entire remaining block of 3,136 shares on February 10 at $82.67, totaling over $259,000.
Summary Verdict
The “dumping” sentiment was largely a reaction to the now-defunct Warner Bros. bid. The 140% increase in Puts from Citadel suggests that major players are still wary of volatility, but the 49% boost from D.E. Shaw and the 13.7% price surge indicate that the core bull case remains intact. While the Co-CEO and CLO trimmed their holdings in February, the consensus among 132 bullish hedge funds is that Netflix is a “blue-chip” buy as it moves past its M&A concerns.
