"Third quarter holdings of the 'Tiger Cubs': Tiger Global slashed Meta, Coatue slashed CoreWeave, Viking aggressively bought financial stocks."

Holdings adjustments among well-known Tiger Cub hedge funds showed pronounced divergence in the third quarter. Tiger Global Management sharply cut its Meta holdings by nearly 63%, while Coatue Management bucked the trend by increasing its Meta position and making it its largest holding.

According to the latest 13F filings, Tiger Global, led by Chase Coleman, sold about 4.7 million shares of Meta in the third quarter, reducing what was previously its largest long US equity position to its sixth largest holding. Notably, Meta’s share price has fallen by nearly 18% since the end of June.

Over the same period, Coatue Management, headed by Philippe Laffont, significantly reduced its CoreWeave holdings by 62%, as the stock has plummeted about 53% since the end of June. Meanwhile, Andreas Halvorsen’s Viking Global more than tripled its position in PNC Financial Services Group in the third quarter.

Tiger Global Makes Big Meta Cut

Tiger Global’s biggest move in the third quarter was a sharp reduction in its Meta position. The fund sold about 4.7 million shares of Meta, decreasing its holding from its largest long US equity to about 2.8 million shares, dropping the ranking to the sixth largest holding. Meanwhile, its Amazon holding increased to 11.04 million shares, making it the fourth largest position.

Lone Pine Capital, founded by Steve Mandel, also reduced its Meta position, selling about 343,000 shares. Meta’s share price has dropped nearly 18% since the end of June, primarily due to investor concerns about its massive spending in AI and other emerging businesses. Meta’s capital expenditures this year are expected to reach as high as $72 billion.

However, not all institutions are retreating. Coatue Management increased its Meta position by about 355,000 shares against the trend, raising it from the second largest to the largest holding.

Another major move for Coatue Management in the third quarter was a sharp cut in its CoreWeave position, selling 62% of its holdings. It now holds about 6.7 million shares of CoreWeave, dropping it from its largest to its 16th largest US equity position.

CoreWeave shares saw a strong rise earlier this year, but have plummeted nearly 53% since the end of June.

This adjustment reflects that even technology-focused hedge funds choose to take profits or cut losses when facing overvalued tech stocks.

Viking’s Heavy Allocation to Financial Stocks

Unlike its “brethren”, Viking Global made a major move into financial stocks in the third quarter. The fund more than tripled its holding in PNC Financial Services Group to nearly 8 million shares, making it Viking’s largest holding.

Viking’s investment strategy is clearly different from other Tiger Cub funds. Its top four holdings are all financial companies rather than tech stocks. Besides PNC, its major holdings include JPMorgan Chase, Charles Schwab, and Capital One Financial.

Analysts point out that this allocation strategy reflects Viking’s optimism regarding the relative value of the financial sector in the current market environment, especially considering the pressure on tech stock valuations.

Reportedly, 13F filings offer a window into the holdings of the world’s largest asset managers, although the information is relatively limited. These mandatory SEC filings only show fund holdings at the end of the third quarter and do not disclose specific trading times.

Additionally, these filings only reflect long positions in US equities and do not include short positions that may be used for hedging.

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