Coatue Hedge Fund Skirts GameStop Losses While Rivals Bleed

At least one equity hedge fund giant has managed to weather this week’s GameStop Corp. storm.

Coatue Management’s performance is about flat so far this year, according to people familiar with the matter.

The firm is skirting losses as equity titans including D1 Capital Partners and Melvin Capital Management have suffered double-digit declines shorting the video-game retailer’s shares. Other peers have been dragged down by the resulting broader market havoc.

Coatue sidestepped the tumult in part because the firm doesn’t take on nearly as much borrowed money as Melvin Capital and its short portfolio is smaller, the people said. Philippe Laffont’s fund has been sitting in some cash recently and its small bets in private companies also likely cushioned the fund from equity losses.

A spokesman for the firm declined to comment.

Coatue’s hedge fund gained about 64% last year, one of the people said.

©2021 Bloomberg L.P.

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