Daniel Ek, chief executive officer of Spotify Ltd., speaks at a news conference in New York (Photographer: Louis Lanzano/ Bloomberg)

Spotify's $8 Billion Rally Is Attracting Loads of Hedge Funds

(Bloomberg) -- Spotify Technology SA, the music-streaming company that’s gained 47 percent since its April debut, attracted a number of prominent hedge funds in the second quarter.

Philippe Laffont’s Coatue Management, George Soros’s Soros Fund Management and Louis Bacon’s Moore Capital Management were among funds that held the stock as of June 30, according to filings released Tuesday. Tiger Global Management, an investor in Spotify before its direct listing, also counted the stock as its biggest investment in the second quarter with a 7.2 percent stake valued at $2.15 billion as of the filing date.

Spotify's $8 Billion Rally Is Attracting Loads of Hedge Funds

Spotify’s rally has added more than $8 billion in market value since its unusual trading debut on April 3. Last month, the company reported 180 million monthly active users in the second quarter, which beat analyst estimates. User growth is one of the reasons Wall Street expects Spotify’s revenue to expand by 29 percent in 2019.

Coatue bought 2.17 million shares of Spotify in the quarter, enough for a 1.2 percent stake, while Soros added 728,700 shares and Moore bought 240,000. Other hedge funds that took stakes during the quarter include Steadfast Capital, which bought 1.45 million shares, Lansdowne Partners with 1.16 million shares and Jericho Capital with 1.14 million shares.

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