Dan Sundheim's D1 Capital dumped high-growth tech stocks in the first quarter

Published Mon, May 16 202212:02 PM EDTUpdated Mon, May 16 202212:46 PM EDT

Jesse Pound @/in/jesse-pound @jesserpound

Hedge fund veteran Dan Sundheim bailed on several large bets on the tech sector during the first quarter, according to a securities filing released Monday. Sundheim's D1 Capital exited positions in JD.com , Carvana and Shopify during the first three months of 2022, according to the filings. Those positions were worth more than $2 billion combined at the end of December. The firm did not disclose when the sales were made, and timing was likely a key component in determining how the fund performed: All three stocks fell sharply during the first quarter. Overall, the value of D1's public equity holdings fell to about $8.5 billion at the end of March, down from more than $16 billion at the end of December. That is likely a combination of selling out of stocks to shift money elsewhere and of market declines for holdings. Here are some other positions that D1 closed out that were worth at least $100 million each at the end of December: 10X Genomics Bath & Body Works Coupa Software Toast Tesla Block Even the stocks that D1 did hold on to were subject to major selling. For example, the fund dumped more than 20% of its stake in Amazon and nearly 70% of its stake in Disney . One tech stock that D1 did add to was Microsoft , increasing its stake by about 36%. That position was valued at just over $1 billion at the end of March. The company more than tripled its position in British car retailer Cazoo . That was valued at around $100 million at the end of the first quarter. D1 also built a stake of about $281 million in software firm Atlassian . One holding that may have significantly affected D1's performance was automaker Rivian. The value of D1's stake was cut in half during the first quarter despite no selling activity by the fund. The lock-up period from Rivian's IPO expired earlier this month. Sundheim built his reputation as an investor at Viking Global, where he served as chief investment officer. Last year, D1 made large bets on reopening stocks , such as Expedia , which is now the fund's top holding.