Laffont’s hedge fund, Coatue Management, has roughly 24% of its 13F portfolio invested into three EV companies: Tesla, Rivian and Lucid. The fund first acquired shares of TSLA stock in 2020 and it is currently its largest position with a 12.04% portfolio allocation. During Q1, the fund also added another 48,987 shares of Tesla to its existing position. Coatue now owns a total of 1.53 million shares.
Let’s get into the details on Laffont’s bet on EV stocks.
Philippe Laffont Bets on EV Stocks TSLA, RIVN and LCID
As of the first quarter, Coatue had assets under management (AUM) of $72 billion and a 13F portfolio worth over $13 billion. Laffont is no stranger to the investing world and his 13F portfolio is larger than 99% of all hedge funds. In addition, Coatue has an annualized return of 14.34% over the past three years.
This hedge fund operates under a concentrated, medium-term investing strategy. Coatue has an average holding period of 7.38 quarters for stocks in its portfolio. For stocks in its top 10 positions, however, it has an average holding period of only two quarters. Its top 10 positions account for 63.56% of its portfolio.
During Q1, Laffont sold off 4.38 million shares of RIVN stock. Despite the large sale, though, Rivian is still the hedge fund’s second-largest position with an 11.33% allocation. Coatue first invested in the EV company privately at a $27.6 billion valuation, along with other investors like Fidelity Management and Dan Sundheim’s D1 Capital Partners. Whale Wisdom reports that Coatue owns a 3.45% stake in the company, or 30.83 million shares.
Furthermore, Coatue Management owns 2.96 million shares of LCID stock, which makes up 0.55% of the fund’s portfolio. Lucid is the fund’s 30th largest position. The stake was worth $75.41 million at the end of Q1.
Supply-chain issues have plagued EV companies in recent months. As a result, both Rivian and Lucid had to lower their production guidance for the year. Rivian lowered its guidance from 50,000 vehicles to 25,000 vehicles. Meanwhile, Lucid lowered its guidance from 20,000 vehicles to between 12,000 and 14,000 vehicles.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.