An $11 billion tech-focused hedge fund scored a 52% gain by betting on Tesla and against scandal-ridden Wirecard this year, a report said
Coatue Managementscored a 52% gain this year by betting on Teslaand against German fintech Wirecard, the Financial Times reported.
- The $11 billion tech-focused
hedge fundis run by "Tiger cub" Philippe Laffont, who previously worked at billionaire Julian Robertson's Tiger Management.
- Coatue held 3.1 million Tesla shares at the end of the third quarter that are now worth $1.3 billion, the FT said.
- The fund's performance eclipses the average 17% return gained by tech-focused hedge funds this year.
New York-based Coatue Management has been one of the best-performing big hedge funds in 2020, scoring a gain of 52% through November.
The fund's position in Tesla helped notch big gains since the carmaker's stock is up 592% year-to-date, boosted by retail investor interest and its upcoming inclusion in the S&P 500 on December 21. Coatue held 3.1 million Tesla shares at the end of the third quarter, now worth $1.3 billion, the FT said, citing a source.Read More: The creator of a new volatility index for the Nasdaq 100 shares how investors can protect portfolios loaded with tech names — and explains why he thinks it's superior to the VIX
The fund also held a big short position in Germany's biggest accounting fraud, Wirecard. The fintech filed for insolvency after a huge accounting scandal that saw $2 billion go missing and its former CEO's subsequent arrest. Coatue's exact position in Wirecard is not clear.Coatue's solid performance overshadows the 5% gain in HFR's Global Hedge Fund Index so far this year. The hedge fund did not immediately respond to Business Insider's request for comment.
"I truly believe that in every portfolio you need to ask yourself what is going to be more relevant five to 10 years versus today," FT quoted Coatue's Laffont as saying at a 2018 industry conference. "The most interesting trend is that technology, which used to be mostly software and semiconductors and obscure things, it's coming everywhere, it's the future of cars and the future of transportation and every sector."
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