Top hedge funds picked up Facebook amid third quarter crash
November 15, 2012 10:49 AM EST
Facebook's disastrous second quarter earnings report, which sent the shares of the social network down 32 percent in a week, has attracted some of the top hedge fund stock pickers.
Andreas Halvorsen's Viking Global Management took a liking, buying 4.1 million shares in the third quarter, while Philippe Laffont's Coatue Management acquired 1.4 million. Chase Coleman's Tiger Global Management sharply increased its Facebook stake to 11.7 million shares from just 2 million three months earlier and Patrick McCormack's Tiger Consumer Management increased its stake slightly to 1.8 million shares.
Investors have been debating the fair stock market value of Facebook Inc since even before it went public at $38 (23.98 pounds) a share in May, leading to considerable volatility.
In its first few months of trading, the stock dropped to around $30 (18.93 pounds). But the biggest decline started in the middle of the third quarter, on July 26, when Facebook reported a drastic slowdown in revenue growth and failed to offer financial forecasts to quell fears about its ability to boost advertising growth.
The shares plummeted 32 percent over the next week and subsequently dropped to an all-time closing low of $17.73 on September 4.
The share price has since crept higher. On Wednesday, the stock jumped almost 13 percent to close at $22.36 as investors breathed a sigh of relief that expiring trading restrictions on a huge block of shares failed to trigger an immediate wave of insider selling.
Third quarter holdings of Facebook were revealed in quarterly securities filings made by the hedge funds on Tuesday and Wednesday this week. Although the filings reflect holdings as of September 30 and might be outdated, many investors look to the portfolios of long-term stock pickers such as Coleman and Halvorsen for guidance.
Another beaten-down tech company also got some hedge fund attention in the third quarter: Yahoo Inc, which nabbed Marissa Mayer to head the company from rival Google Inc.
Coleman's Tiger Global opened a new position of 25 million shares, David Einhorn's Greenlight Capital built a 5 million share new position and Dan Loeb's Third Point, already a major Yahoo investor, raised its stake to 73 million shares from 70.5 million three month earlier.
Yahoo shares have gained 14 percent since Mayer was appointed chief executive officer on July 16. On Wednesday, the shares lost 2 cents, or 0.1 percent, to close at $17.83.
(Reporting by Aaron Pressman. Additional reporting by Svea Herbst in Boston and Sam Forgione and Katya Wachtel in New York. Editing by Andre Grenon)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- 5 Proofs Russia is Geared-Up for Shooting War with U.S. and Can Win Future Nuclear Showdown
- Target’s ‘Surprise Doorbusters’ Black Friday 2014 Deals On TV Sets, Entertainment Centres, DVD Players And More
- IKEA Black Friday 2014 Ad Includes Discounts On Home Furnishings, Appliances, Kitchen Designs, Beds, Sofas, Mattresses And Toys
- T-Mobile’s Black Friday 2014 Deals On Apple iPhone 6, Samsung Galaxy Note 4/Edge, Nexus 6, HTC One M8, LG G3, iPad Air 2 And Mini 3
- ISIS Drug Transit From Afghanistan To Europe Confirmed By Russia: Money Goes Into Terror Funding And In New Recruitments
- ISIS Kidnaps Iraqi Defence Minister’s Family, Executes Female Parliament Candidates
- Bill Clinton At It Again, Caught By Camera In Jerusalem Peeking At Woman’s Breast