Today is the deadline for institutional investors to file their quarterly Form 13F, meaning that retail investors will have an opportunity to track their positions as of Dec. 31.
Philippe Laffont’s Coatue Management is a popular hedge fund to track. The fund has $23.84 billion in 13F assets under management (AUM) and had a total AUM of $47.87 billion as of May 2023.
During the fourth quarter, Coatue dumped its entire 3.81 million share stake of Lucid (NASDAQ:LCID). This is a major change for Coatue, as it had purchased 5.19 million shares during Q2, bringing its total stake to 6.56 million shares and making LCID stock its 45th-largest position. During the third quarter, the hedge fund sold 2.75 million shares.
LCID Stock: Coatue Sells Out of Its Entire Position
Coatue first purchased shares of the electric vehicle (EV) company during Q1 2021. However, the fund sold out of its entire stake during Q4 2022 before buying shares again the following quarter. This seems consistent with its average holding period of 6.36 quarters, or 1.59 years.
In recent years, Coatue Management has taken a liking to emerging high-growth companies with innovative plans. As of Q4, Coatue owned 4.05 million shares of Tesla (NASDAQ:TSLA) after buying 31,347 shares. TSLA stock is its seventh-largest position out of 100 total positions. Coatue also owns 2.58 million shares of Rivian (NASDAQ:RIVN) after selling 487,881 shares.
LCID stock has fallen by about 66% year-over-year (YOY), while the S&P 500 has risen by 20%. Coatue may have reasoned that Lucid was dragging its portfolio lower while the rest of the market was moving higher. Opportunity cost plays a key role in portfolio decision-making.
Meanwhile, Saudi Arabia’s Public Investment Fund (PIF), a majority shareholder of the company, has also filed its 13F. PIF’s stake of 1.37 billion shares, equivalent to a 60% ownership stake, remained unchanged from the prior quarter. In May 2023, the fund agreed to acquire 265.69 million shares worth $1.8 billion in a private placement.
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.
