5 Biggest Losers in Gabriel Plotkin’s Melvin Capital Portfolio

2. Atlassian Corporation Plc (NASDAQ:TEAM)

YTD Share Price Decline as of May 25: 51.34%

Number of Hedge Fund Holders: 65

Atlassian Corporation Plc (NASDAQ:TEAM) is an Australian company that offers software solutions like Jira, Confluence, Bamboo, Crucible, Trello, and Atlassian Marketplace for software developers and project managers. Melvin Capital dumped 47% of Atlassian Corporation Plc (NASDAQ:TEAM) shares previously held in the first quarter of 2022. The hedge fund owned a $234.5 million stake in the company. With a year-to-date decline of over 51% as of May 25, Atlassian Corporation Plc (NASDAQ:TEAM) is one of the biggest losers in Gabriel Plotkin’s portfolio. 

On May 23, Jefferies analyst Brent Thill lowered the price target on Atlassian Corporation Plc (NASDAQ:TEAM) to $180 from $275 and maintained a Hold rating on the shares. The analyst trimmed his projections across 28 software companies due to stiffening economic conditions and the daunting risk of recession. He warned investors that his new price targets are 25% lower, though weak fundamentals could result in multiples shrinking further. 

According to Insider Monkey’s Q1 data, Atlassian Corporation Plc (NASDAQ:TEAM) was found in 65 public hedge fund portfolios, down from 69 funds in the last quarter. Jim Simons’ Renaissance Technologies owned the largest stake in the company, with 2.6 million shares worth $776.8 million.  

Here is what ClearBridge Investments International Growth ADR Strategy has to say about Atlassian Corporation Plc (NASDAQ:TEAM) in its Q1 2022 investor letter:

“The structural bucket has the shortest investment horizon across the spectrum of growth companies we target in the Strategy. We closely monitor the macro impacts and turnaround progress of these companies and will be disciplined sellers when the thesis for a holding plays out. We also trimmed back workflow software maker Atlassian (NASDAQ:TEAM) after a strong runup in its shares in 2021. Most of our reductions in emerging growth have involved IT or related companies where innovation is a key to their business model. That said, we remain positive on the IT sector and have largely maintained holdings in our highest-conviction ideas.”