Coatue is one of several large hedge funds that suffered unusually large losses in March, when high-growth companies like Facebook, Amazon and Netflix suffered sharp declines. Coatue, which owned all three of those stocks as of December 31 filings, is known as a Tiger Cub because Laffont is a former employee of Julian Robertson's Tiger Management. Founded in 1999, Coatue has often generated large returns with a focus on high-growth technology companies. According to an investor, Coatue's main fund has returned an annualized 12.5 percent since inception.
In response to the market move, Coatue has reduced its gross and net exposure to levels near historic lows, suggesting many of the company's positions were already pared down last week."This puts us in a position to go back on the offense when we choose, even though this approach means it might take us longer to recoup our losses," Laffont wrote.
"We are investors not traders," Laffont said, adding that "size is the biggest impediment to returns."
A spokeswoman for Coatue declined to comment.
—By CNBC's John Jannarone.