For successful online trading and investing, the actions of major investors as well as hedge funds are important to observe. That could tell us a thing or two about the stocks they are dealing with as well as the general situation of the market.
Almost $2 Billion of Stake in Netflix Sold by Tiger
Chase Coleman’s Tiger Global hedge fund has sold almost $2 billion of its stake in Netflix Inc. ($NFLX). According to the 13F filings that were presented to the SEC, Netflix was the highest in the list of shares that were sold in Q2. Roughly $2 billion of Netflix were sold in total stock between March and June-end. It has been a difficult time for the company, since it has been earning below expectations with subscriber numbers falling below estimates.
Tiger’s History with Netflix
At the end of the first quarter, Tiger had around 18 million $NFLX shares which accounted for around 4.2% of the company’s stake. But by Juneend, all of them, with a total value of over $1.8 billion, were sold by Tiger. Since 2014’s final quarter, Tiger had started purchasing shares in the company, and in 2015’s second quarter more shares were purchased. That was quite the right time for it since Netflix stocks rose significantly price-wise in the period it was owned by the fund. Towards the end of 2014, Netflix stock traded in the region of $50 per share. More recently the stock has been trading for nearly $100 per share.
It must be remembered that Chase Coleman has had a brilliant track record with investment, knowing when to make the right moves. That knowledge and skill has delivered him quite consistent returns, and sometimes really incredible returns, though there were downturns recently for hedge funds all over the industry. The Tiger hedge fund witnessed a massive 45% climb in 2011. While the fund has focused traditionally on Internet companies and tech stocks, it must be seen whether there is a significant change of strategy, now that it has sold so much of its $NFLX stake.
Stake in Apple Reduced as Well
But that wasn’t the only diversion from the norm for Tiger’s portfolio in the second quarter. The fund also cut its stake in Apple Inc. ($AAPL) by a massive 4.2 million shares. However, before getting carried away, it must be observed that Tiger still has around 1.4 million shares of the company by the end of Q2. And Tiger also has its position maintained in various other tech stocks including the e-commerce giant Amazon.com Inc. ($AMZN).
What the 13F filings do tell you is that Coleman isn’t shy of making major changes to his portfolio, and on a massive scale as well. But the fund’s future investment plans need to be seen, and investors and stock market experts will do well to keep watching the Tiger!
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