Coatue's View of the Market, Or Why Catching a Falling Knife Is Dangerous
Coatue sees "zero valuation support" for Robinhood and Lemonade. The hedge fund makes the case for Tesla, Nvidia & Datadog in slides obtained by Newcomer.
Coatue — the prolific technology hedge fund that managed $73 billion as of last year — privately circulated this deck, which a source passed on to me.
Today’s post focuses on Coatue’s view of the macro environment and shows why Coatue has been moving cautiously.
Why should you care what Coatue thinks?
The firm has proven savvier than its hedge fund brethren in navigating the tech downturn and is one of the most prolific investors in the technology industry.
As I told you yesterday:
Coatue’s hedge fund is down 17% this year as of May 17.
For context, rival Tiger Global is reportedly down 52% this year. D1 was down 22.5% through May across its public and private positions. A source tells me that Altimeter’s hedge fund is down roughly 35% so far this year across public and private positions, but its public portfolio is rumored to be down as much as 64% in the first half of this year. The NASDAQ Composite is down 29% so far this year.
That’s all after Coatue’s hedge fund traded up 82% in 2020.
The slides below give a picture of Coatue’s view of the stock market as of late May.
Newcomer subscribers can read the 20+ exclusive slides below. (You might want to read the email in your browser as the email is likely to get cut off. The last slide is “Structured Products Shine During the Crisis.”)