Did These Two Tech-Focused Investors Get Their Top Picks Right?

Then there is Facebook Inc (NASDAQ:FB), which represented Coatue’s second-largest position, containing 8.73 million shares, and which was the only stock that gained ground in the third quarter among the fund’s three largest holdings. Andor also held 500,000 shares of Facebook at the end of June, down by a third on the quarter (the position ranked ninth). The price of Facebook Inc (NASDAQ:FB)’s shares has advanced by more than 8% since the beginning of July and is up by almost 19% year-to-date. Judging by the hedge fund sentiment, Facebook Inc (NASDAQ:FB) represents a good long-term investment, as the company ranked on the third spot, with 133 funds having disclosed stakes worth $8.86 billion in aggregate, equal to 3.70% of the company’s shares.

We should also mention another one of Andor’s picks, Alibaba Group Holding Ltd (NYSE:BABA), in which the fund initiated a stake of 700,000 shares during the second quarter and which ranked on the fourth spot in terms of value. However, with the stock losing 28% year-to-date, Mr. Benton might be not so thrilled about the investment. Coatue also owns around 1.40 million shares of Alibaba as of the end of June, but the position amasses just 1.10% of its equity portfolio, compared to 5.34% for Andor. The drop of Alibaba Group Holding Ltd (NYSE:BABA)’s stock on the back of a string of negative news made investors more cautious and limit their exposure, but it seems that Mr. Benton is willing to take some risks, because after all, Alibaba Group Holding Ltd (NYSE:BABA) is the largest e-commerce company that operates in one of the largest markets in the world, and despite the current turmoil, the Chinese economy will most likely rebound sooner or later. It’s interesting to mention that Coatue’s fourth-largest holding is represented by Alibaba’s closest rival, JD.Com Inc (ADR) (NASDAQ:JD), in which the fund owns 14.90 million shares, and whose stock has lost around 7% during the third quarter.

Disclosure: None