This Is What Hedge Funds Bought And Sold In The Fourth Quarter

Back in December, when we described what was happening to the market in Q4 in the simplest possible terms, we said it was nothing more (or less) than a scramble by hedge funds to deleverage and liquidate (both the baby and the bathwater) ahead of an avalanche of redemption requests as disgusted LPs demanded their money back from an industry which had largely underperformed the S&P for a 9th consecutive year. The result was a scramble by the “2 and 20” crowd to hit every increasingly lower bid in what could only be described as an accelerating firesale.

Today, courtesy of BarclayHedge, we have confirmation that this is precisely what happened: according to the Iowa-based company, “hedge fund redemptions picked up significantly in December, as nervous investors fretted about stock market volatility, global economic uncertainty, major commodity price downturns and other economic factors.”

Specifically, hedge fund redemptions soared to $42.3 billion in December – this represented the largest monthly outflow in at least five years, and was arguably the biggest catalyst behind December’s market collapse. Additionally, December activity of hedge fund investors worldwide (excluding CTAs) producing a fourth straight month of net redemptions, exceeding September’s $39.1 billion, at the time a five-year high.

Which, not surprisingly, explains why in the 4th quarter, hedge funds were busy protecting performance and taking risk off the table, according to the latest barrage of 13F filings. And yet, not everyone was busy selling: as Bloomberg notes, many saw the value of their U.S. equity holdings drop in the period, as the industry careened toward its worst year since 2011.

Courtesy of Bloomberg, here is a rundown of some key takeaways from the latest hedge fund reporting season (which as usual, is at least 45 days old, and thus hardly indicative of their current positions):

  • David Tepper’s hedge fund greatly reduced its holdings of U.S.-listed stocks in the fourth quarter. The value of Appaloosa’s stakes fell 64 percent to $2.02 billion. That compares with a 14 percent decline in the S&P 500 index. Dan Loeb’s Third Point saw the value of its equity holdings fall by about half, or $6 billion, in the quarter.

  • One surprise was hedge fund managers’ interest in timeshares. David Einhorn built a position in Hilton Grand Vacations Inc., along with Highfields Capital Management, Davidson Kempner and Senvest Management.

  • Two stocks in focus last quarter were embattled General Electric Co.and PG&E Corp. Viking Global Investors exited its stake in GE, worth about $1.5 billion. Hedge funds were mixed on PG&E. Baupost pared its holding in the California utility, Viking exited and BlueMountain Capital Management boosted. Appaloosa added marginally, leaving the hedge fund with a position worth $153.6 million as of Dec. 31.

  • When it comes to the FAANG stocks, one of the most notable moves was by Chase Coleman’s Tiger Global Management, which cut its Amazon.com Inc. stake by more than a third. Steve Mandel’s Lone Pine Capital sold its $1 billion stake in Alphabet Inc., the parent of Google.

  • Alibaba was a popular tech stock for some. Viking and Coatue Management each added to their positions in the Chinese e-commerce company. But Tepper’s Appaloosa axed its entire position, selling 1.5 million shares worth about $247 million.

  • Managers streamed out of Spotify Technology SA. Steve Cohen’s Point72 Asset Management, Moore Capital Management and Wexford Capital reduced their positions while Lee Ainslie’s Maverick Capital exited completely. But Spotify was Tiger Global’s largest U.S. equity position.

  • A new darling: Anaplan Inc., a business-planning software company that went public in October after hiring former Tesla Inc. executive Dave Morton as its chief financial officer. It was a favorite of Baillie Gifford, TIAA, Coatue Management and Alkeon Capital Management.

  • While not a hedge fund, Warren Buffett’s Berkshire Hathaway reported one of the biggest surprises. As we reported earlier, it exited its $2 billion stake in Oracle. The news sent the software company’s shares lower.

Finally, here is a recap of what the biggest money managers did as of Dec. 31:

ADAGE CAPITAL PARTNERS GP

  • Top new buys: SHW, CVS, MPC, VLO, TSRI, AEP, SPAQ, CACI, XPO
  • Top exits: AET, COL, ANDV, ESRX, EVHC, TIF, ITW, ARGX
  • Boosted stakes in: GE, BURL, W, UTX, WM, MMM, UAA, PNW, PEG
  • Cut stakes in: AAPL, SHPG, DE, AA, EMR, MSFT, NXPI, AAL, HD, GOOG, JPM, BRK, JNJ, MRK, FB

BALYASNY ASSET MANAGEMENT

  • Top new buys: NYCB, SIRI, VVV, AFL, SNAP, PLD, ETFC, JPM, TWTR, EVR, PYPL, NNN, HAS, BABA, F, RHT, FB
  • Top exits: NLY, VNTR, CNQ, KBR, CNDT, LPT, CLNY, AMRN, FDC, JCP, MAT, SNE
  • Boosted stakes in: ECA, FITB, HCP, ISBC, NOK, KOS, BDN, CMCSA, V, YUM, DLTR, USB, AXTA, WPX
  • Cut stakes in: GPOR, BHGE, MFA, COG, ZION, PAGS, HTA, VER, TCF, COP, LEN, C, WP, HIG, MS, UTX, TEVA, STT, DIS, BMY, MSFT, FIS, RAD, ZAYO

BAUPOST GROUP

  • Top new buys: EBAY, NXST, CBS, AKBA,
  • Top exits: NG, SCACU, TRCO,
  • Boosted stakes in: AR, PXD, SHPG, UNVR, LBTYK
  • Cut stakes in: ABC, AGN, CAH, MCK, PCG, QRVO, SYF, FOXA

BERKSHIRE HATHAWAY

  • Top new buys: STNE, SU, RHT
  • Top exits: ORCL
  • Boosted stakes in: PNC, TRV, BK, USB, JPM, BAC, GM
  • Cut stakes in: AAPL, WFC, LUV, PSX, UAL, CHTR

BLUEMOUNTAIN

  • Top new buys: CTRA, EBAY, FL, RIG, TMO, ULTA
  • Top exits: FANG, HK, NBL, NFX, NXST, PTEN
  • Boosted stakes in: AAP, AAPL, AZO, BKNG, CIEN, SOI, PCG, BA
  • Cut stakes in: CF, ESV, EURN, GLNG, SM, XOP

BRIDGEWATER ASSOCIATES

  • Top new buys: ALXN, AMP, CCL, EL, EMN, LB, LH, PCG, MS, EIX
  • Top exits: CMCSA, EWT, HSY, LLY, NFX, PFE, JNJ
  • Boosted stakes in: ADS, EWY, IEMG, IP, IVV, URI, XEC, X
  • Cut stakes in: EWZ, HYG, SPY, TD, TEL, TOL

CARLSON CAPITAL

  • Top new buys: SLM, REZI, AMLP, STI, TRCO, HTA, RF, WFC, CAG, LNT, INTC,
  • Top exits: PF, DVMT, ORIG, VIAV, SWN, COL, ANDV,
  • Boosted stakes in: BAC, FOX, IDTI, LEN, SHP, P, ZION, CVS, WPX, BLDR
  • Cut stakes in: CFG, FBP, USFD, NXPI, V, WCC, T, LNC

COATUE MANAGEMENT

  • Top new buys: PLAN, TME, TWLO, MA, GRPN, INTU,
  • Top exits: ROKU, FIT, PDD, DDD, HUYA, FTR, TAL, WDC
  • Boosted stakes in: BABA, SPOT, DATA, CRM, V, NOW, Z, EA, FB
  • Cut stakes in: QCOM, PYPL, HTZ, NKE, LBRDK, MU, AAPL, Adbe

COLUMBUS CIRCLE

  • Top new buys: KO, SAVE, CF, XLNX, ABT, PG
  • Top exits: FLIR, ATVI, WAB, EFX, XPO, BAX, FB
  • Boosted stakes in: TNDM, FIVE, RNG, CMG, MOH, TWLO
  • Cut stakes in: WCG, ALGN, FANG, SIVB, URBN, CE, AMZN

CORSAIR

  • Top new buys: NMRK, CHDN, AVYA, ROAN, ECPG, MSFT
  • Top exits: CZR, GSM, VOXX, TDW
  • Boosted stakes in: WSC, SPY, BRK/B
  • Cut stakes in: FLEX, TROX, IPI, HUN, PLYA

DUQUESNE FAMILY OFFICE

  • Top new buys: EEM, DAL, AAL, HOLX, A, OKTA, GOLD
  • Top exits: OIH, CVE, C, FOXA, XLE, TMUS, QCOM
  • Boosted stakes in: MSFT, COUP, ABT, WDAY, BABA, NFLX, ADBE
  • Cut stakes in: IBB. CRM, GILD, ZEN, PYPL, GOOGL, NOW, AMZN

EMINENCE CAPITAL

  • Top new buys: GPK, RCL, TMO, BABA, SCHW, STZ, CNC, DHI, LVS
  • Top exits: CSOD, PEGA, CBRE, CYBR, BECN, PTC, JAX
  • Boosted stakes in: GOOG, QSR, DHR, INXN, ELLI, PYPL, EA, TTWO, EQIX
  • Cut stakes in: ICE, IQV, BERY, MSFT, CF, IMPV, USFD, VMC, LEN, EFX

ENGAGED CAPITAL

  • Top new buys: DFRG, MGLN
  • Top exits: PBYI, UEIC, CLS
  • Boosted stakes in: INWK, RCII, APOG
  • Cut stakes in: BW, PETX, GRPN, BHE, ANIK

FRONTFOUR CAPITAL

  • Top new buys: SXT
  • Top exits: PQG, COOP, DWDP, CBT, IPHS, DIS
  • Boosted stakes in: OBE, MDCA, MCC, CTL, VAC
  • Cut stakes in: FCAU, NXST, CLNY, LPX, BLDR

IMPALA ASSET MANAGEMENT

  • Top new buys: FLR, GUSH, HD, MHK, NEM, PH, UPS, WYNN, TRN
  • Top exits: DHI, NAV, NTAP, PLCE, THO, VALE, NFX
  • Boosted stakes in: ANF, HOG, KNX, M, NSC, NVR, SWK, TTWO
  • Cut stakes in: BA, BC, CAT, DAL, HES, RCL, TECK, RCL

JANA PARTNERS

  • Top new buys: FLMNW, CNC, SNPS, WP, WSC, CRM, MA
  • Top exits: PF, KDP, HAIN, A, EA, FTCH, DLTR, BABA
  • Boosted stakes in: CAG, EDU, TIF, CVNA, MSFT, ZAYO
  • Cut stakes in: FLMN, FDC, HDS, TEVA, EXAS, BSX, AAPL

LAKEWOOD CAPITAL

  • Top new buys: MAS, VXZ, KBH, DHI, STT, VIXM, GS, TOL, FB, LEN, SFLY
  • Top exits: MDXG, ICE, ESRX
  • Boosted stakes in: CIT, ON, WH, BC, CDK, CWK, BMCH, FDX, GOOGL
  • Cut stakes in: BLDR, CLS, CMCSA, ATUS, HCA, MA,

MAGNETAR FINANCIAL

  • Top new buys: PACB, ARRS, FNSR, CCC, BEL, CCC, FTACU
  • Top exits: CA, KS, PF, ESRX, EGN, SVU, CVG, COL, GPT, OCLR, CCC
  • Boosted stakes in: NFX, ET, SEND, PE, NSU, NXEO, TEVA
  • Cut stakes in: ENB, TRP, S, IDTI, WMB, FDC, EXTN, NXTM, USG

MASON CAPITAL

  • Top new buys: DELL, REZI
  • Top exits: DVMT, BBL, EQT, SCG, CZR, SHPG, VMW
  • Cut stakes in: FOXA, XRX, BATRK, FG

MAVERICK CAPITAL

  • Top new buys: BTG, EXP, XOG, LVS, NOK
  • Top exits: PACB, CBS, CIEN
  • Boosted stakes in: COMM, KKR, SCHW, GPRO, MDCO, CNC
  • Cut stakes in: UHS, TMUS, INTC, IPHI, DIS, WCN, BUD

MARSHALL WACE

  • Top new buys: PYPL, HON, DIS, PM, NEE, NEE
  • Top exits: LLL, SODA, HUBS, WAB, PRAH, PRK
  • Boosted stakes in: CMCSA, FDC, FOLD, FCAU, ECA, NKE, C, AAPL, MS
  • Cut stakes in: ZNGA, DGX, ROL, FOMX, ABMD, EA, PFE

MELVIN CAPITAL MANAGEMENT

  • Top new buys: Top new buys: LVS, ADBE, LB, NKE
  • Top exits: MSFT, YNDX, WEN, BABA, HLT
  • Boosted stakes in: FDC, PYPL, IQV, QSR, PAGS
  • Cut stakes in: EDU, RCL, STZ, EA

MOORE CAPITAL MANAGEMENT

  • Top new buys: NG, GRSH, IVV, CCH, CCC, SPAQ, PEI
  • Top exits: FDC, GTYH, GRSHU, ORGOW, ORGO, CCC/U, VOYA, WFC
  • Boosted stakes in: GDX, FBP, FCX, UTX, BJ, BAC, ECA
  • Cut stakes in: GDS, EEM, ALTM, EQT, ZAYO, DVN, MSFT

NEUBERGER BERMAN GROUP

  • Top new buys: SWI, ETRN, REZI, TRCO, ASHR
  • Top exits: COMM, IPHS, QRVO, TVTY, CO
  • Boosted stakes in: CI, SPY, NVS, HD, APD, ADBE
  • Cut stakes in: JPM, GOOG, AON, PFE, CSX, JNJ, BA

OMEGA ADVISORS

  • Top exits: SBGI, FRAC, DISH, MXL, FGP, MU, DHCP, DXC, BC, FB
  • Boosted stakes in: COOP, CVS, CI, TRN, TCRD
  • Cut stakes in: FDC, NEWM, OCN, AMCX, NBR, UAL, NLSN, MSFT, WPX, C, AMZN

POINTSTATE CAPITAL

  • Top new buys: ANTM, DLTR, GM, RHT, V, VLO, VST, DELL
  • Top exits: ADSK, LYB, NOW, NSC, PE, SU, URI, XOP
  • Boosted stakes in: AMZN, CI, EEM, I, PCG, QCOM, TMUS, FOXA
  • Cut stakes in: ADBE, BABA, ECA, MPC, TRGP, MSFT, BA, GOOGL

RAGING CAPITAL

  • Top new buys: TDW, FTD, CBB, CSLT, BNED, CLDR, AXTI, WFC, GS, AMZN, MSFT, FB, AAL
  • Top exits: TLRY, GLF, TRCO
  • Boosted stakes in: AMBC, BMCH, PKE, JELD, BLDR,MRAM
  • Cut stakes in: FCAU, XLNX, RDCM, SPLP, SBGI, HLIT

RENAISSANCE TECHNOLOGIES

  • Top new buys: AAPL, DELL, EMR, MU, RTN, SBUX, V, TSLA, LEN, SBUX, TMUS, PCG
  • Top exits: CVX, DHR, DVMT, FOXA, JPM, MS, MSFT, T
  • Boosted stakes in: TSM, CMG, DUK, FB, GOOGL, SLB, S
  • Cut stakes in: ALGN, BMY, ISRG, NVDA, PANW, WCG, KO, BBY, DPZ

SANDELL ASSET MANAGEMENT

  • Top new buys: ITG, IMPV, IDTI, TRCO, VVC, RHT
  • Top exits: GPT, KS, CA, EVHC, PF, KLXI, COL, TMUS, MGM
  • Boosted stakes in: CSX, DNB, CZR
  • Cut stakes in: FOXA, PCRX, ORBK

SOROBAN CAPITAL

  • Top new buys: HLT, MAR, MLM, LIN
  • Top exits: AVGO, STAY, MHK
  • Boosted stakes in: UTX, AXTA, BABA, QRVO, NSC, FB, SNE
  • Cut stakes in: BKNG, GOOG, SAP, NXPI, UNP

TEMASEK HOLDINGS

  • Top new buys: DELL, TOT, GH, NIO, ORTX
  • Top exits: AVGO, EMR, JD,
  • Boosted stakes in: BP, PYPL, RDSA
  • Cut stakes in: ALXN, AMZN, AR, BABA, INFO, TRQ

TIGER GLOBAL MANAGEMENT

  • Top new buys: STNE, TME, ESTC
  • Top exits: TWTR, BEDU, TWLO, AAPL, MDB
  • Boosted stakes in: FCAU, EB, JD, APO, RUN

THIRD POINT

  • Top new buys: CI
  • Top exits: UTX, BABA, MSFT, NFLX, MPC, LEN, DE, FANG, WPX
  • Boosted stakes in: CPB, SHPG, IQV, CRM
  • Cut stakes in: BAX, DWDP, PYPL, DHR, STZ, AXP, MRK, WP, V, SPGI, DOV, SHY

TUDOR INVESTMENT

  • Top new buys: SIFI, DFBH
  • Top exits: FCE/A, PF, LHO
  • Boosted stakes in: FOXA, AQUA, HIL
  • Cut stakes in: ATUS, ZNGA, TGT, T

VIKING GLOBAL INVESTORS

  • Top new buys: MRNA, AAL, Z, ADBE, DVA, FANG
  • Top exits: GE, PE, PCG, LNC
  • Boosted stakes in: MPC, V, MSFT, CRM, FB, NFLX, PGR
  • Cut stakes in: LEN, DIS, DWDP, RJF, TMO, ECA

Source: Bloomberg

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