In this article, we discuss the 5 stocks billionaire Philippe Laffont is selling. If you want to read our detailed analysis of Laffont’s history, investment philosophy, and hedge fund performance, go directly to Billionaire Philippe Laffont is Selling These 10 Stocks.
5. Datadog, Inc. (NASDAQ:DDOG)
Number of Hedge Fund Holders: 62
Percentage Decline in Stake: 100%
Datadog, Inc. (NASDAQ:DDOG) is a technology business that monitors databases and servers using a cloud-based data analytics platform. Billionaire Philippe Laffont added Datadog, Inc. (NASDAQ:DDOG) to his portfolio in the third quarter of 2019. But his fund sold all the shares of the company in the third quarter of 2021.
In its Q3 2021 investor letter, Artisan Global Discovery Fund cited Datadog, Inc. (NASDAQ: DDOG) and detailed its position on the company. Here is what the fund said:
“In addition to trimming our position in Atlassian, we also pared our exposure to Datadog. Datadog is a leading provider of monitoring and analytics for cloud-based applications. Software has become central to how organizations deliver differentiated products and user experiences and optimize business processes—fueling the disruption taking place across nearly every industry. The success of this digital transformation trend is increasingly tied to quality and performance—in turn, driving strong secular demand for IT infrastructure and application monitoring. Datadog’s platform— which integrates and automates infrastructure monitoring, application performance monitoring and log management—provides real-time observability of its customers’ entire technology stacks and is built to address the scale, complexity and dynamic nature of the modern cloud era. Datadog’s solutions fill a void left by legacy tools built for on-premise IT infrastructures, and the company is well positioned to exploit an underpenetrated, large addressable market. The company has been firing on all cylinders recently, adding 1,000 or more new customers each quarter (~600 pre-pandemic) and growing its free cash flow margin by 800 basis points year-over-year in Q2. Additionally, the integration of nine different products into a single platform has enabled the company to successfully cross-sell products to existing customers. While we believe Datadog’s low-touch, landand-expand distribution model positions the company well to capitalize on the continued shift to the cloud, we trimmed our position as shares approached our estimate of private market value.”
4. Coinbase Global, Inc. (NASDAQ:COIN)
Number of Hedge Fund Holders: 50
Percentage Decline in Stake: 100%
Coinbase Global, Inc. (NASDAQ:COIN) is a securely hosted bitcoin wallet that allows users to buy and utilize bitcoin. In November, Canaccord analyst Joseph Vafi raised his price target on Coinbase Global, Inc. (NASDAQ:COIN) to $342 from $325 and maintained a “Buy” rating on the shares.
Mr. Laffont sold the shares of Coinbase Global, Inc. (NASDAQ:COIN) in Q3.
Insider Monkey’s data shows that 50 elite hedge funds held stakes in Coinbase Global, Inc. (NASDAQ:COIN) at the end of the third quarter, up from 49 funds a quarter earlier.
Hayden Capital, an investment management firm, in its third-quarter 2021 investor letter, mentioned Coinbase Global, Inc. (NASDAQ:COIN). Here is what the fund said:
“Coinbase (COIN): We established a new position in Coinbase, the dominant US crypto exchange and brokerage, this quarter. Given the misperceptions and early-stage nature of the industry, I thought it would be helpful for our partners’ understanding to share a report outlining our thesis, which we published on October 31st.
At a high level, we believe the crypto economy is in the middle of “crossing the chasm” into mainstream adoption & use cases, which will result in millions of mainstream users needing to transact in crypto in some form.
Coinbase is well positioned in the Western, regulated markets to capture this influx – considering their dominant market share / mindshare, their focus on the casual user and thus superior userexperience compared to alternatives, and their position as a “toll-booth” for this industry. Longer-term, we also believe Coinbase has “super-app” ambitions, and will be the primary gateway for both the general population and institutions to interact with the crypto economy…” (Click here to see the full text)
3. ChargePoint Holdings, Inc. (NYSE:CHPT)
Number of Hedge Fund Holders: 18
Percentage Decline in Stake: 100%
ChargePoint Holdings, Inc. (NYSE:CHPT) is a company that provides electric car charging networks. On December 10, Stifel analyst Stephen Gengaro initiated coverage of ChargePoint Holdings, Inc. (NYSE:CHPT), rating the stock as “Buy” and gave a price target of $29.
Billionaire Philippe Laffont added ChargePoint Holdings, Inc. (NYSE:CHPT) to his portfolio in the second quarter by buying 2.10 million shares. Coatue Management sold its entire stake in the company in third quarter of 2021.
In its first-quarter 2021 investor letter, Alger Mid Cap Focus Fund mentioned Chargepoint Holdings Inc. (NYSE:CHPT). Here is what the fund said:
“ChargePoint Holdings, Inc. was among the top detractors from performance. ChargePoint provides a network of electric vehicle (EV) charging stations globally. Like equities of many businesses geared to electric vehicles, ChargePoint shares underperformed in the first quarter of 2021 as part of a broad rotation away from high-growth technology companies with limited track records of performance as public companies. Longer-term, Charge Point could potentially serve as a bellwether company of the fast growing EV category and we believe it is an attractive way to gain exposure to EV adoption without betting on whether a particular EV brand will win in the marketplace. Additionally, EVs are a massive end market.”
2. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
Percentage Decline in Stake: 100%
C3.ai, Inc. (NYSE:AI) is a company that develops Enterprise AI software to help companies accelerate their digital transformation. Chase Coleman and Feroz Dewan’s Tiger Global Management LLC is the most significant stakeholder of C3.ai, Inc. (NYSE:AI), with 1 million shares worth $46.34 million.
Coatue Management had owned 778,451 shares of C3.ai, Inc. (NYSE:AI) worth $48.68 million at the end of the second quarter. All these shares were sold in the third quarter.
1. Luminar Technologies, Inc. (NASDAQ:LAZR)
Number of Hedge Fund Holders: 12
Percentage Decline in Stake: 100%
Luminar Technologies, Inc. (NASDAQ:LAZR) is a vehicle sensor and software firm that caters to both passenger and commercial vehicles. Coatue Management increased its hold in Luminar Technologies, Inc. (NASDAQ:LAZR) by 901% in the second quarter, ending the period with 1.59 million shares of the company. This stake was sold off completely in the third quarter.
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