The $2.7 billion Valiant Capital is heavily weighted with technology stocks, and given that fund manager Christopher Hansen is an alum of Blue Ridge Capital, we can see that he didn’t change the philosophy of Blue Ridge when he started his fund. This seems to be a winning strategy for Valiant, at least in its equity portfolio—according to 13F filings from the SEC. More than 45% of the entire portfolio is in tech stocks, which hold the top four positions. The entire equity portfolio can be seen here.
Because it’s always important to track hedge fund activity—see how it has helped retail investors beat the S&P 500 handily—let’s take a look at the top five stock picks for Valiant Capital.
Topping the list is Apple Inc. (NASDAQ:AAPL) with just over 16% of the portfolio. The “iEverything” maker hasn’t had an easy time this year after Tim Cook took over for the late, tech-legend Steve Jobs. The company is facing very serious competition from Google’s Android, and a recent announcement by Facebook Inc (NASDAQ: FB) to use Android phones for its new Facebook Inc (NASDAQ: FB) user interface, Home, drove Apple Inc. (NASDAQ:AAPL) shares down by another 1%, bringing the total declination in Apple Inc. (NASDAQ:AAPL) since the start of the year to a whopping 22%.
And speaking of Facebook Inc (NASDAQ: FB) —number two in Valiant’s top five—investors were clearly excited by founder Mark Zuckerberg’s announcement regarding Home. The stock rallied 3% ahead of the 1:00pm announcement to a two-week high of $26.39. Although Facebook still hasn’t completely solved the problem of how to monetize its social-network dominance, the news was seen as a step in the right direction. Gains could be tempered, however, as analysts warn of increased teenage interest in Instagram, Tumblr and Pheed, draining interest in Facebook Inc (NASDAQ: FB), and ultimately, Home.
Number three is Google Inc (NASDAQ:GOOG). Although Facebook will be running its new app on Android phones (such as the Samsung Galaxy), the news wasn’t all rainbows and sunshine for Google Inc (NASDAQ:GOOG). There is some concern that Home will supplant the Android features of the phone, and could potentially draw users away from the platform toward a Facebook Inc (NASDAQ: FB)-exclusive functionality. Although Facebook will not immediately use its own search app, Graph Search, on Home, the prospect of it doing so in the future isn’t unrealistic and could be more damaging to Google Inc (NASDAQ:GOOG).