In this article, we discuss the 5 biggest hedge fund casualties of Reddit WallStreetBets’ short squeezes. If you want to read our detailed analysis of these hedge funds, go directly to the 10 Biggest Hedge Fund Casualties of Reddit WallStreetBets’ Short Squeezes.
D1 Capital Partners is a hedge fund managed from New York. It is placed fifth on our list of 10 biggest hedge fund casualties of Reddit WallStreetBets’ short squeezes. The fund manages more than $13 billion in assets at the end of the first quarter of 2021. It is run by Dan Sundheim. News publication Bloomberg claims that the fund took a 20% hit in the short-selling saga involving GameStop Corp. (NYSE: GME) in January. D1 was one of the best-performing funds in 2020, finishing the year with a 60% gain and $20 billion in assets under management.
D1 Capital Partners has invested a lot of money in Microsoft Corporation (NASDAQ: MSFT), the Washington based technology company that sells computer software and services. Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT) with 23.9 million shares worth more than $5.6 billion.
“We have written extensively about Microsoft in recent commentaries. It was our leading contributor last year and one of our largest weightings within the Portfolio. It continues to experience business momentum through several dominant, essential, and competitively advantaged businesses, like Office 365 and Azure. The markets it competes for are enormous, which gives the company the ability to compound at scale. In the past quarter alone, the company generated over $40 billion in revenue, representing a 17% growth rate. The inherent operating leverage in Microsoft’s business model continues and led to 34% earnings growth this past quarter. Despite the broad rotation we saw in the first quarter and Microsoft’s robust performance in 2020, we think its business fundamentals continue to exhibit strength, and the stock continues to reflect the fundamentals.”