Billionaire Dan Loeb Dumped Apple Inc. (AAPL) And Bought This Tech Stock

Third Point wasn’t the only hedge fund with a large stake in Equinix at the beginning of January. Billionaire and Tiger Cub Stephen Mandel’s Lone Pine Capital increased the size of its previous position by 34% to a total of 2.8 million shares (find Mandel’s favorite stocks). Paulson & Co., managed by billionaire John Paulson, reported a position of 2.1 million shares (check out Paulson’s stock picks). Philippe Laffont’s Coatue Management had the largest position out of the funds we track in our database of 13F filings, at 4.2 million shares; Laffont is a Tiger Cub as well (research more stocks Coatue owns). However, Equinix also has a substantial bearish community: according to the most recent data, 15% of the outstanding shares are held short.

Equinix is performing well as a company but we are worried that its stock is expensive at this time, and so we wouldn’t recommend moving from Apple to that stock as Loeb did between October and December. Given the large amount of hedge fund ownership- though keep in mind there could also be big names on the short side- it might be best placed on a watch list to evaluate revenue and earnings trends over the next several months.

Disclosure: I own no shares of any stocks mentioned in this article.