In this article, we discuss the 10 stocks billionaire Philippe Laffont is selling.
Philippe Laffont earned his bachelor’s degree in computer science from MIT in 1991. Later, he worked as an analyst for McKinsey & Company. In 1996, he joined Tiger Management LLC as a research analyst, focused on telecommunications companies, after working as an independent consultant. Laffont started Coatue Management in 1999.
Coatue Management focuses on technology, media, telecommunications, and the consumer and healthcare sectors in both public and private markets.
Philippe Laffont of Coatue Management
Coatue Management boosted its stakes in eleven current holdings and added thirteen new equities to its portfolio in the third quarter. Some of the top holdings in Philippe Laffont’s Q3 portfolio are Microsoft Corporation (NASDAQ:MSFT), Broadcom Inc. (NASDAQ:AVGO), and Uber Technologies, Inc. (NYSE:UBER).
Microsoft Corporation is a new arrival on billionaire Philippe Laffont’s portfolio, as his hedge fund bought about 1.04 million shares of the company, worth $293.24 million. In addition, Michael Turrin of Wells Fargo initiated coverage of Microsoft Corporation in November, rating the stock as “Overweight” and gave a price target of $400.
The hedge fund managed by Philippe Laffont owns 317,584 shares in Broadcom Inc. worth over $154.01 million, representing close to 0.62% of his portfolio. On December 13, Baird analyst Tristan Gerra raised his price target on Broadcom Inc. to $690 from $550 and reiterated an “Outperform” rating on the shares.
Coatue Management holds 12.74 million shares in Uber Technologies, Inc., according to 13F holdings data for the third quarter of 2021, after lowering its stake in the firm by 5% from the second quarter. In December, UBS analyst Lloyd Walmsley rated Uber Technologies, Inc. as “Buy” and gave a price target of $80.
Our Methodology
For this research, we analyzed Laffont’s 13F portfolio for Q3 2021. We chose the equities that the fund completely sold in Q3.
Billionaire Philippe Laffont is Selling These Stocks
10. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 18
Percentage Decline in Stake: 100%
Lucid Group, Inc. (NASDAQ:LCID) is an electric car manufacturing company.
Morgan Stanley analyst Adam Jonas boosted his price objective on Lucid Group, Inc. to $16 from $12 in November and kept an “Underweight” rating on the stock.
Overall, 18 hedge funds in the Q3 database of Insider Monkey reported owning stakes in Lucid Group, Inc..
While Laffont owns significant stakes in Microsoft Corporation, Broadcom Inc., and Uber Technologies, Inc., Lucid Group, Inc. was offloaded by him in the third quarter.
9. Lightspeed Commerce Inc. (NYSE:LSPD)
Number of Hedge Fund Holders: 26
Percentage Decline in Stake: 100%
Lightspeed Commerce Inc. (NYSE:LSPD) is Montreal-based e-commerce and point-of-sale software firm.
Lightspeed Commerce Inc. was upgraded to “Outperform” from “Sector Perform” by Scotiabank analyst Paul Steep in November, with a price objective of $103, down from $121. He believes the stock price reaction to the Q2 results was exaggerated.
In the third quarter of 2021, 26 hedge funds in Insider Monkey’s database of 867 funds held stakes in Lightspeed Commerce Inc. compared to 29 funds in the previous quarter. Spencer M. Waxman’s Shannon River Fund Management is Lightspeed Commerce Inc.’s most significant stakeholder, with 210,000 shares worth $20.25 million.
8. Lemonade, Inc. (NYSE:LMND)
Number of Hedge Fund Holders: 16
Percentage Decline in Stake: 100%
Lemonade, Inc. (NYSE:LMND) is a holding company that specializes in the insurance industry.
In November, Jefferies analyst Yaron Kinar initiated coverage of Lemonade, Inc., rating the stock as “Underperform” and gave a price target of $49.
Lemonade, Inc. reported earnings for the third quarter in November, with an EPS of -$1.08, exceeding predictions by $0.08. In addition, the quarterly revenue of $35.7 million increased 100.6% year over year, exceeding nearly $2.18 million expectations.
At the end of the second quarter of 2021, billionaire Philippe Laffont had a $47.25 million stake in Lemonade, Inc.. During the third quarter, he entirely sold off this stake.
Artisan Partners Limited Partnership, an asset management business, featured a few stocks in its Q4 2020 investor letter, and Lemonade, Inc. was one of them. Here is what the fund had to say:
“We also exited our investment in Lemonade. Lemonade is a digital-first insurance provider, offering both domestic and international homeowners and renters insurance. The company is disrupting its industry, having digitized the entire insurance experience—from client onboarding to claims—in order to build generational relationships with first-time insurance buyers. Using its app, the median time to receive a bindable renters insurance quote from Lemonade is less than two minutes, and the time for a homeowner’s quote is under three minutes. All claims are also filed through the Lemonade app, where a claims-specific bot can pay out applicable claims in as little as three seconds. The company’s longterm strategy is built upon acquiring customers cheaply today as they begin their adult life with the anticipation of growing future premiums as customer demands for insurance products naturally increase as they accumulate typically insured possessions—home and car purchases, travel, pets and providing coverage for beneficiaries in the event of an unforeseen death. We believe the addressable market is massive, particularly given the industry has largely resisted change, giving Lemonade a long runway to take share from weaker legacy competitors. That said, with shares appreciating above our PMV estimate, we exited our campaign.”
7. LegalZoom.com, Inc. (NASDAQ:LZ)
Number of Hedge Fund Holders: 16
Percentage Decline in Stake: 100%
LegalZoom.com, Inc. (NASDAQ:LZ) provides online legal services and solutions. Coatue Management had bought 20,281 of shares of LegalZoom.com, Inc. at the end of the second quarter. But the hedge fund sold off the stock completely in the third quarter
JPMorgan analyst Sterling Auty decreased his price objective on LegalZoom.com, Inc. to $38 from $44 on December 14 while maintaining an “Overweight” rating. The analyst lowered his price expectations in the software technology sector, as part of his 2022 prognosis.
In the third quarter of 2021, 16 hedge funds were bullish on LegalZoom.com, Inc., down from 33 funds in the preceding quarter. The leading stakeholder of LegalZoom.com, Inc. is Select Equity Group, holding 2.82 million shares worth $74.48 million.
6. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 64
Percentage Decline in Stake: 100%
Intuit Inc. (NASDAQ:INTU) is a software firm that specializes in business and financial management. Evercore ISI analyst Kirk Materne boosted his price objective on Intuit Inc. to $720 from $650 in November and maintained an “Outperform” rating on the stock.
Intuit Inc. posted its Q1 2022 earnings in November. EPS for the quarter totaled $1.53, beating estimates by $0.56. The quarterly revenue came in at $2.01 billion, up 52.3% from the prior-year quarter, exceeding estimates by $200 million.
Coatue Management added Intuit Inc. to its portfolio in the second quarter by buying 26,314 shares. This stake was sold off completely in the third quarter of 2021. Overall, 64 hedge funds in the Q3 database of Insider Monkey reported owning stakes in Intuit Inc.. The stakes of these funds are valued at $6.15 billion.
Unlike Microsoft Corporation, Broadcom Inc., and Uber Technologies, Inc., Philippe Laffont is selling Intuit Inc..
In its third-quarter 2021 investor letter, Cooper Investors mentioned Intuit Inc.. Here is what Cooper Investors said:
“The other meaningful deal during the quarter was Intuit Inc.’s acquisition of Mailchimp for $12bn. Intuit has reinvented itself over the last decade and thrived with a leadership position in QuickBooks Online, the financial accounting software for small businesses (effectively the ‘Xero of the US’). We originally invested in Intuit in February 2020, excited by the QuickBooks prospects.
Management have executed exceptionally well on the opportunity set which has seen the shares double since our initial purchase. However, the company has now conducted two meaningful deals in Mailchimp and Credit Karma worth a combined US$20bn over the last 12 months. The investment proposition has shifted from a focus on QuickBooks to now being a financial and small business software conglomerate. We continue to very much admire the company, but with Intuit Inc. now trading on 50x forward earnings we no longer see such attractive latency on offer, nor the rewards for the level of execution risk and thus we have exited the position.”
5. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 62
Percentage Decline in Stake: 100%
Datadog, Inc. (NASDAQ:DDOG) is a technology business that monitors databases and servers using a cloud-based data analytics platform. Billionaire Philippe Laffont added Datadog, Inc. to his portfolio in the third quarter of 2019. But his fund sold all the shares of the company in the third quarter of 2021.
In its Q3 2021 investor letter, Artisan Global Discovery Fund cited Datadog, Inc. and detailed its position on the company. Here is what the fund said:
“In addition to trimming our position in Atlassian, we also pared our exposure to Datadog. Datadog is a leading provider of monitoring and analytics for cloud-based applications. Software has become central to how organizations deliver differentiated products and user experiences and optimize business processes—fueling the disruption taking place across nearly every industry. The success of this digital transformation trend is increasingly tied to quality and performance—in turn, driving strong secular demand for IT infrastructure and application monitoring. Datadog’s platform— which integrates and automates infrastructure monitoring, application performance monitoring and log management—provides real-time observability of its customers’ entire technology stacks and is built to address the scale, complexity and dynamic nature of the modern cloud era. Datadog’s solutions fill a void left by legacy tools built for on-premise IT infrastructures, and the company is well positioned to exploit an underpenetrated, large addressable market. The company has been firing on all cylinders recently, adding 1,000 or more new customers each quarter (~600 pre-pandemic) and growing its free cash flow margin by 800 basis points year-over-year in Q2. Additionally, the integration of nine different products into a single platform has enabled the company to successfully cross-sell products to existing customers. While we believe Datadog’s low-touch, landand-expand distribution model positions the company well to capitalize on the continued shift to the cloud, we trimmed our position as shares approached our estimate of private market value.”
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 50
Percentage Decline in Stake: 100%
Coinbase Global, Inc. (NASDAQ:COIN) is a securely hosted bitcoin wallet that allows users to buy and utilize bitcoin. In November, Canaccord analyst Joseph Vafi raised his price target on Coinbase Global, Inc. to $342 from $325 and maintained a “Buy” rating on the shares.
Mr. Laffont sold the shares of Coinbase Global, Inc. in Q3.
Insider Monkey’s data shows that 50 elite hedge funds held stakes in Coinbase Global, Inc. at the end of the third quarter, up from 49 funds a quarter earlier.
Hayden Capital, an investment management firm, in its third-quarter 2021 investor letter, mentioned Coinbase Global, Inc.. Here is what the fund said:
“Coinbase (COIN): We established a new position in Coinbase, the dominant US crypto exchange and brokerage, this quarter. Given the misperceptions and early-stage nature of the industry, I thought it would be helpful for our partners’ understanding to share a report outlining our thesis, which we published on October 31st.
At a high level, we believe the crypto economy is in the middle of “crossing the chasm” into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact in crypto in some form.
Coinbase is well positioned in the Western, regulated markets to capture this influx – considering their dominant market share / mindshare, their focus on the casual user and thus superior userexperience compared to alternatives, and their position as a “toll-booth” for this industry. Longer-term, we also believe Coinbase has “super-app” ambitions, and will be the primary gateway for both the general population and institutions to interact with the crypto economy…” (Click here to see the full text)
3. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 18
Percentage Decline in Stake: 100%
ChargePoint Holdings, Inc. (NYSE:CHPT) is a company that provides electric car charging networks. On December 10, Stifel analyst Stephen Gengaro initiated coverage of ChargePoint Holdings, Inc., rating the stock as “Buy” and gave a price target of $29.
Billionaire Philippe Laffont added ChargePoint Holdings, Inc. to his portfolio in the second quarter by buying 2.10 million shares. Coatue Management sold its entire stake in the company in third quarter of 2021.
In its first-quarter 2021 investor letter, Alger Mid Cap Focus Fund mentioned Chargepoint Holdings Inc.. Here is what the fund said:
“ChargePoint Holdings, Inc. was among the top detractors from performance. ChargePoint provides a network of electric vehicle (EV) charging stations globally. Like equities of many businesses geared to electric vehicles, ChargePoint shares underperformed in the first quarter of 2021 as part of a broad rotation away from high-growth technology companies with limited track records of performance as public companies. Longer-term, Charge Point could potentially serve as a bellwether company of the fast growing EV category and we believe it is an attractive way to gain exposure to EV adoption without betting on whether a particular EV brand will win in the marketplace. Additionally, EVs are a massive end market.”
2. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
Percentage Decline in Stake: 100%
C3.ai, Inc. (NYSE:AI) is a company that develops Enterprise AI software to help companies accelerate their digital transformation. Chase Coleman and Feroz Dewan’s Tiger Global Management LLC is the most significant stakeholder of C3.ai, Inc., with 1 million shares worth $46.34 million.
Coatue Management had owned 778,451 shares of C3.ai, Inc. worth $48.68 million at the end of the second quarter. All these shares were sold in the third quarter.
1. Luminar Technologies, Inc. (NASDAQ:LAZR)
Number of Hedge Fund Holders: 12
Percentage Decline in Stake: 100%
Luminar Technologies, Inc. (NASDAQ:LAZR) is a vehicle sensor and software firm that caters to both passenger and commercial vehicles. Coatue Management increased its hold in Luminar Technologies, Inc. by 901% in the second quarter, ending the period with 1.59 million shares of the company. This stake was sold off completely in the third quarter.
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This article is originally published at Insider Monkey.
