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Coatue Management Bullish On AI, Electric Vehicles In Q2 While Cautious On Chinese Equities

Published 14/08/2023, 21:35
© Reuters.  Coatue Management Bullish On AI, Electric Vehicles In Q2 While Cautious On Chinese Equities
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Benzinga - by AJ Fabino, Benzinga Staff Writer. Coatue Management, under the lead of Tiger Cub Philippe Laffont, realigned its focus in the second quarter, according to its latest 13F filing. While the filings are backwards looking, investors use them as a source for market trends. Here’s what you need to know.

Key Adjustments: Coatue reduced its position in Nvidia Corporation (NASDAQ:NVDA) by 6.7%. Contrary to the Nvidia sale, the firm added shares of Microsoft Corporation (NASDAQ:MSFT) by some 67% from its previous position.

Amazon.com, Inc (NASDAQ:AMZN) wasn’t left behind, with Laffont more than doubling his stake in the e-commerce giant, marking it as one of his top 10 holdings.

Electric Vehicles In Focus: Laffont ramped up investments in the electric vehicle sector, enhancing Coatue’s exposure to Plug Power Inc (NASDAQ:PLUG) by 900%. He also increased stakes in ChargePoint Holdings Inc (NYSE:CHPT) and Lucid Group Inc (NASDAQ:LCID), by 600% and 370%, respectively.

Read also: Home Depot Q2 Earnings Preview: Earnings Estimates, What Analysts Are Saying And Key Metrics To Watch

Chinese Equities Under Scrutiny: Amid fluctuating sentiments around China’s economic future, Coatue Management took decisive actions. The firm markedly reduced holdings in Alibaba Group Holding Ltd -ADR (NYSE:BABA), Baidu Inc (NASDAQ:BIDU), JD.com Inc (NASDAQ:JD) and others. The most significant of these moves was in Alibaba, which saw a position cut by roughly 90% in the second quarter.

Benzinga’s Take: Laffont’s shifts are in response to both optimistic prospects in AI and the EV sectors and cautionary measures amidst geopolitical tensions in China and economic unpredictability.

Coatue’s repositioning mirrors a pragmatic approach, favoring a mix of established tech giants and promising sectors, while hedging against potential international market volatility.

Read next: ‘The Big Short’ Investor Is Going Big Short: Burry’s 13F Says The Bull Run Of 2023 Is Over With 40,000 Puts On The SPY, QQQ

Photo via Pixabay.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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