Coatue hedge fund avoids losses as rivals bleed

Photographer: Tiffany Hagler-Geard / Bloomberg

At least one equity hedge fund giant managed to survive this week Storm GameStop Corp.

Coatue Management’s performance has been roughly stable so far this year, according to people familiar with the matter.

The company avoids losses as titans of equity, including D1 Capital Partners and Melvin Capital Management suffered double-digit declines by shorting shares of the video game retailer. Other peers have been dragged down by the resulting market havoc.

Coatue avoided the uproar in part because the company doesn’t accept as much borrowed money as Melvin Capital and its short portfolio is smaller, the people said. Philippe Laffont’s fund recently invested cash and his small bets on private companies also likely cushioned the fund from losses on equities.

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A company spokesperson declined to comment.

Coatue’s hedge fund gained about 64% last year, one of the people said.

– With the help of Bei Hu