Matrix Capital Increases Exposure to Tech Sector; Here Are Its Top 5 Tech Picks

#4 LinkedIn Corp (NYSE:LNKD)

– Shares Owned by Matrix Capital Management (as of March 31): 712,500

– Value of Holding (as of March 31): $81.47 million

Even though it lost half of its market capitalization during the first quarter, LinkedIn Corp (NYSE:LNKD) managed to jump two spots quarter-over-quarter during that period and became Matrix Capital Management’s ninth-largest equity holding at the end of March because the fund boosted its stake in the company by 72% during the first quarter. In late-April, the company came out with its fiscal 2016 first quarter numbers, which were better than analysts’ estimates. However, that wasn’t of much help in providing a boost to its stock, which currently trades down by 45% year-to-date. The company recently became embroiled in a controversy after a hacker attempted to sell stolen login credentials of 117 million LinkedIn users, which were stolen in a 2012 hack attack, on Dark Web marketplace ‘TheRealDeal’. While LinkedIn Corp (NYSE:LNKD) managed to get the posting removed from TheRealDeal and also announced that it had taken measures to safeguard its users, some industry experts think that this incident will cause serious damage to the company’s credibility in the long run. Karthik Sarma‘s SRS Investment Management initiated a stake in during the first quarter by purchasing 2.34 million shares of the company.

 #3 Tableau Software Inc (NYSE:DATA)

– Shares Owned by Matrix Capital Management (as of March 31): 5.4 million

– Value of Holding (as of March 31): $247.7 million

Tableau Software Inc (NYSE:DATA) experienced the same fate as LinkedIn Corp during the first quarter with its stock plummeting after it reported worse-than-expected numbers for its fiscal 2015 fourth quarter and provided dismal guidance for fiscal 2016. Matrix Capital Management did the same thing to its stake in Tableau Software Inc (NYSE:DATA) during the first quarter that it did with its stake in LinkedIn Corp – boosted it by 72%. Tableau Software’s stock again took a big hit recently after the company reported its first-quarter results, which has increased its year-to-date loss to 48%. Though the first quarter numbers that the company reported were above the Street’s projections and it also upped its guidance for fiscal 2016, Tableau’s stock was still pounded following its earnings release largely because of the slowdown in growth of its licensing business, which grew by 14% year-over-year, compared to a 31% year-over-year growth reported a year earlier and a 57% year-over-year growth in the third quarter of fiscal 2015. Hedge funds that reduced their stakes in the company during the first quarter included Chase Coleman‘s Tiger Global Management LLC, which brought its holding down by 28% to 6.89 million shares.