One of the hottest new hedge funds is loading up on FAANG stocks

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  • Dan Sundheim’s D1 Capital Partners bulked up positions in three major FAANG stocks during the third quarter.
  • The hot new hedge fund increased its stake in Amazon to $US714 million from around $US126 million and its position in Facebook to $US528 million from about $US423 million.
  • D1 also boosted its stake in Netflix by more than 1 million shares, but the value of the position increased only from $US930 million to $US988 million due to company’s stock price struggling this year.
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One of the hottest new hedge funds is placing big bets on FAANG stocks.

Dan Sundheim’s D1 Capital Partners boosted its position in Amazon to $US714 million from $US126 million during the third quarter, according regulatory filings released Thursday. Sundheim’s fund also increased its stake in Facebook to $US528 million, from $US423 million.

Further, D1 added more than 1 million shares to its position in Netflix. But the value of the stake rose only to $US988 million from $US928 million due to the company’s stock struggling this year. The fund also dumped its $US275 million stake in Google-parent Alphabet.

D1 has about $US7.2 billion worth of assets under management as of September 30, according to SEC filings released Thursday. Sundhieim launched D1 about a year ago with $US4 billion in funding after stepping down as Viking Global Investors’ chief investment officer in 2017.

Sundheim highlighted his bullishness on Netflix while speaking at the Sohn Investment Conference earlier this year.

The fund manager said he believes Netflix will eventually evolve into a “boring company” as its growth becomes consistent and steady. He also predicted that Netflix’s shares would start trading above $US1000 a -piece.

Netflix shares are up about 8% this year, compared to the 23% gain in the S&P 500 Index. An onslaught of streaming competitors entering the market has weighed on the stock and fed concerns that the company could struggle to grow subscribers in the future.