Tybourne Capital unloaded its entire stake in Peloton Interactive, makers of the popular, high-end exercise bicycles, according to the firm’s third-quarter 13F filing.
The Hong Kong-based Tiger Grandcub had nearly doubled its stake in the second quarter when it became the firm’s sixth-largest U.S. listed long position, according to regulatory filings.
The Peloton sale is one of several major moves made by Tybourne in the third quarter.
Tybourne is the first known hedge fund firm to file its September quarterly report detailing U.S.-listed long equity-related holdings. The deadline is not until November 15, when most hedge funds are expected to file their reports.
Peloton was one of the biggest beneficiaries of the early pandemic lockdown, with the stock swelling more than sixfold in 2020 alone. However, as the economy reopened and people began to feel increasingly comfortable engaging in activities outside their home, shares of Peloton began to drop, and they’ve now gone down by nearly half from their early January high. They fell about 30 percent in the third quarter alone.
When the rest of the firms get around to filing their third-quarter reports, it will be interesting to see which other hedge funds unloaded their stakes in the third quarter and which ones swooped in and took initial positions. At the end of the second quarter, Peloton was the largest long of Woodson Capital Management and the second-largest long position of Light Street Capital Management.
Tybourne is headed by Eashwar Krishnan, who previously spent 11 years at Tiger Cub Stephen Mandel Jr.’s Lone Pine Capital.
At the end of the third quarter, southeast Asia internet giant Sea, Ltd. remained the firm’s largest U.S. long position, even after the position was trimmed by 12 percent, according to the 13F filing.
Argentinian e-commerce company MercadoLibre was the second-largest long.
The two stocks each moved up a slot after KE Holdings, the largest long at the end of the second quarter, dropped to the fourth slot, even after Tybourne boosted its stake by 77 percent.
This is because shares of the Chinese real estate giant plunged by 60 percent or so in the third quarter. We don’t know what Tybourne paid for its additional shares, but presumably the firm was bottom-fishing amid the selloff.
Tybourne’s third-largest long at the end of the third quarter was Pinduoduo, the Chinese agriculture-focused technology platform, after the hedge fund boosted its stake by 89 percent.
In the third quarter, Tybourne also initiated a position in Snowflake, the cloud computing-based data warehousing company, which immediately became the firm’s fifth-largest U.S. long position.
It was just one of Tybourne’s two new U.S. long positions initiated in the third quarter.
Altogether, the firm fully unloaded seven positions in the third quarter, including Peloton. The other significant liquidation was S&P Global Inc.
