Netflix, Meta shares ditched by hedge funds as tech sell-off persists

Netflix, Meta shares ditched by hedge funds as tech sell-off persists
According to securities filings, hedge funds such as Tiger Global Management, Scopus Asset Management, and Winslow Capital Management sold shares of Netflix Inc. even before the company revealed its first loss of customers in over a decade in March.

Fund managers are reassessing tech businesses that gained after the advent of the Coronavirus outbreak in 2020 that helped propel the benchmark S&P 500 to record levels. It is worth noting, however, that the S&P 500 is currently down almost 16% for the year, while the Russell 1000 Growth index, which specializes in technology businesses, is down by 25%

Light Street, a hedge fund, sold all its 149,025 shares of Meta as well as 7,960 Netflix shares. According to documents, it nearly halved its position in Google parent Alphabet Inc. and reduced its investment in Inc by 10% in the quarter ending in March.

Meanwhile, Hitchwood Capital Management LP sold its 390,000 Meta shares, Dan Sundheims D1 Capital cut its Amazon investment by 22% to 198,433 shares, and Melvin Capital withdrew all of its 850,000 Meta shares.

Though these developments are based on past trends and do not indicate current positions, such security filings are one of the few public ways to view what major financial institutions and hedge funds own in their portfolios.

Despite the general trend away from technology, certain hedge funds have increased their stakes in a few companies. For instance, Farallon Capital Management bought 698,195 Meta shares, which are down 40.5% for the year.

Meanwhile in the first quarter, Coatue Management raised its stake in Meta Platforms Inc. by 18.2%, to 2,797,896 shares. It also increased its Netflix stake with 1,438,956 shares, up 54.5% from last December, cited sources with relevant information.

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Anjali Mishra

Anjali Mishra

A postgraduate in Criminal Law, Anjali Mishra uses her analytical skills to understand and write about all things market. Anjali holds a keen interest in writing insightful articles on healthcare, business, finance, and emerging technologies for AlpenHornNews and numerous other portals. Coming from outside the economical milieu, Anjali aims to write in a way that helps readers with non-technical knowledge understand technical concepts with ease.