D1 Capital Partners making big bets on FAANG Stocks

Founded in 2017, New York based D1 Capital Partners is one of the youngest prominent hedge fund firms.

Dan Sundheim’s D1 Capital Partners strengthened its position in Amazon by injecting $588 million during the third quarter, according to regulatory filings released Thursday. The hedge fund, which is investing heavily in FAANG (Facebook, Amazon, Apple, Netflix, and Google), also increased its stake in Facebook to $528 million, from $423 million.

Additionally, the fund invested in Netflix and bought up more than a million shares. The value of the stocks appreciated slightly from $928 million to $988 million. The company’s stock this year was not in the limelight and suffered for lack of investor confidence. The fund also lost its affection for the search engine giant Google and off-loaded its $275 million stakes in Google-parent Alphabet.

According to recent filing to stock exchange commission, the company has around $7.2 billion assets under its belt. Sundheim was CEO of Viking Global Investors, which happens to be one of the largest hedge funds in the world. D1 launched about a year ago with a seed investment of $4 billion in 2017.

The head of D1 Capital Partners explained his bullish attitude towards the online media streaming giant. It said, “he believes Netflix will eventually evolve into a “boring company” as its growth becomes consistent and steady’. He also predicted that in the time to come, Netflix’s shares would be precious and would eventually be more than $1000 a share.

READ: Let’s swap Netflix for Microsoft, Jim Cramer says in FAANG audit (via CNBC)

Netflix shares suffered lackluster this year as the company is struggling at the moment, and its shares appreciated about 8% this year, compared to the 23% gain in the S&P 500 Index, representing a below average market performance. Increasing competition from disney+ streaming service, Amazon Prime, and Hulu has adversely affected the stock price.

Featured image: Bloomberg

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