Sundheim’s D1, Viking Bet Big on Peloton Ahead of Plunge
(Bloomberg) -- Dan Sundheim’s D1 Capital and Andreas Halvorsen’s Viking Global Investors both significantly boosted their holdings in exercise-equipment maker Peloton Interactive Inc. in the third quarter, ahead of this month’s plunge.
D1 padded its stake in New York-based Peloton by almost 75%, making it the firm’s sixth-biggest shareholder. Viking increased its position by more than 10-fold, becoming the seven-largest investor. Each of the hedge funds held stakes worth about $500 million at the end of September, according to data compiled by Bloomberg.
Chase Coleman’s Tiger Global Management, Peloton’s fifth-biggest shareholder, pared its holding by 1.63 million shares and Coatue Management trimmed more than 533,000 shares.
Peloton plummeted the most on record on Nov. 5 after cutting its annual revenue forecast and lowering projections for subscribers and profit margins. On Tuesday, the shares surged 16% to close at $54.85 after the company said it will sell $1 billion of stock, paring its decline for the year to 64%.
Hedge funds and other asset managers were required to report their third-quarter holdings to the Securities and Exchange Commission no later than Monday. The funds could have exited or added to their positions after Sept. 30. D1 has returned 17% this year through October.
Other takeaways from the latest 13F filings:
- David Tepper’s Appaloosa Management almost doubled its stake in Macy’s Inc., adding 3.39 million shares for a stake worth $158.2 million
- Gabe Plotkin’s Melvin Capital increased its holding in Snap Inc., while paring Amazon.com Inc.
- Maverick Capital exited its position in Alibaba Group Holding Ltd., worth about $102 million. The U.S.-listed Chinese company has lost 28% of its value this year following heightened regulatory scrutiny from Beijing
- Lone Pine Capital added to its holding of Twitter Inc. and trimmed its stake in Facebook parent Meta Platforms Inc.
- McDonald’s Corp. was also a popular buy for hedge funds during the period, with Viking, Melvin and Balyasny Asset Management establishing new positions
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