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Coatue Posts Biggest Monthly Loss This Year Amid Tech-Stock Rout

(Bloomberg)

(Bloomberg) -- Philippe Laffont’s Coatue Management, one of the world’s largest stock-pickers, tumbled 3.6% in July as a rout in technology shares fueled its worst monthly loss this year. 

Meta Platforms Inc., Amazon.com Inc. and Microsoft Corp. — the firm’s three biggest holdings as of the end of March — all fell more sharply last month than the tech-heavy Nasdaq 100, which slid 1.6%.

Signs of cooling inflation and the prospect of Federal Reserve rate cuts spurred investors to rotate out of high-flying tech shares and plow money into small-cap and value stocks. They poured almost $6 billion into non-tech sector US exchange-traded funds, compared with just $1.4 billion into tech ETFs, according to Bloomberg Intelligence data.

Fed Chair Jerome Powell said Wednesday that a rate cut could come as soon as September. 

With the July loss, Coatue’s hedge fund is now up 5.3% this year, according to an investor letter seen by Bloomberg. It had been up 9.2% at the end of the prior month. Laffont’s firm, which wagers on both public and private companies, managed about $48.4 billion as of May.  

A representative for Coatue declined to comment. 

The last time the hedge fund lost more than 1% was September, when it dropped 2.2%.

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