Jim Simons’ Quant Hedge Fund Is Selling These 5 Stocks

3. Sea Limited (NYSE:SE)

Number of Hedge Fund Holders: 117

Sea Limited (NYSE:SE) is a Singapore-based company engaged in digital entertainment, e-commerce, and financial services. Renaissance Technologies purchased a $74.7 million stake in Sea Limited (NYSE:SE) in Q1 2019. The fund reduced its position in the company over the years, and in Q3 2021, sold its $9.4 million position in Sea Limited (NYSE:SE) entirely. 

On February 7, Barclays analyst Jiong Shao lowered the price target on Sea Limited (NYSE:SE) to $218 from $427 and kept an Overweight rating on the shares. The post COVID-19 economic reopening has had a negative impact on Sea Limited (NYSE:SE)’s gaming and e-commerce business, as consumers spend less time online, the analyst told investors in a research note, noting that Sea Limited (NYSE:SE)’s 2022 outlook may need to be reset.

According to Insider Monkey’s Q3 database, 117 funds were bullish on Sea Limited (NYSE:SE), up from 104 funds in the preceding quarter. Tiger Global Management held the biggest stake in Sea Limited (NYSE:SE) during the third quarter of 2021, with 10.4 million shares worth $3.3 billion. 

Here is what ClearBridge Large Cap Growth Strategy has to say about Sea Limited (NYSE:SE) in its Q3 2021 investor letter:

“Over the last year, we have sought to improve the up capture of the portfolio by expanding exposure to the select bucket of companies growing revenues and earnings at meaningfully above-average rates and targeting large total addressable markets. Newer names in the select bucket like Sea Limited have been strong contributors to relative performance over this period. We believe that owning a broader group of IT and Internet companies with different drivers to the businesses helps manage some of the risk in this relatively more expensive subsector.”