Soros, Lone Pine Washed Hands of Snap Before Latest Stock Slump

(Bloomberg) -- Lone Pine Capital, Soros Fund Management and Valinor Management are among at least 18 hedge funds that exited their positions in Snap Inc. during the quarter ended Sept. 30, likely avoiding the worst of this month’s selloff.

Lone Pine dumped 7.6 million shares of Snap, while Soros sold about 1.6 million and Valinor got rid of almost 1.2 million, according to data compiled by Bloomberg. Other large holders moved to reduce their exposure. T. Rowe Price, once the third-largest investor in Snap excluding its founders, sold 34.7 million shares in the quarter and now has less than a 0.4 percent stake.

Prior to this month’s selloff, Snap shares had fallen 18 percent during the third quarter. Some funds saw this weakness as a buying opportunity. Tybourne Capital Management added Snap to its investments last quarter with a new 14.3 million-share position. Others like Coatue Management, a 2.7 percent holder, added to existing stakes.

Snap’s most recent slump was triggered by its third consecutive revenue miss and slower growth of Snapchat users in last week’s earnings report. At least six analysts have cut their ratings this month, and the stock is down 27 percent since its March debut.

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