Coatue Management LLC
Last Updated: 12/3/2020
Coatue Management LLC is a Limited Liability Company that started in 1999 and is primarily owned and controlled by Philippe P. Laffont.
Per its ADV, Coatue Management invests in U.S. and non-U.S. publicly traded equity securities and equityrelated securities, such as equity swaps and options on behalf of Clients ("Public Investments"). Coatue Management also invests in U.S. and non-U.S. private investments on behalf of certain Clients ("Private Investments"). Coatue Management concentrates largely on certain sectors, including the global technology, media, telecommunications, and some healthcare and consumer sectors, and may also focus on companies in the mobile internet, fintech, software, cloud computing, machine learning, artificial intelligence, mobile gaming, user-generated content and aspects of the sharing economy and Chinese internet sectors. Although Coatue Management’s investment approach is primarily based on fundamental research, in some instances, including with respect to Quant Master, Coatue Management utilizes algorithms in order to select, implement and optimize trading in certain positions. Specifically, both COMF and Long Only Master focus on Public Investments and employ an investment approach based primarily on fundamental research and an overall long-term investment horizon, while certain other Clients focus on Private Investments also primarily using Coatue Management’s proprietary fundamental research. Opportunity Master also focuses on Public Investments but intends to be more concentrated than COMF and Long Only Master and also seeks to take advantage of pockets of value created by recent market dislocations. Although Quant Master also focuses on Public Investments, Coatue Management employs a quantitative/systematic investment strategy and uses investment processes that are very different than those of COMF, Long Only Master, Opportunity Master and each Fund focused on Private Investments. Additionally, with respect to certain positions that Coatue Management has identified for Clients, Coatue Management may employ a combination of quantitative analysis and fundamental research in order to implement and/or optimize the trading for those positions.
Coatue Management LLC operates out of an office in New York, NY. Based on the Form ADV filed on 2020-05-21 00:00:00, the investment firm is comprised of 157 employees, only 55 of whom performs investment advisory functions.
Fact Sheet
- Name: Coatue Management LLC
- CRD No: 157910
- Filing Recorded: 2020-05-21 00:00:00
- Year of Origin: 1999
- Employees: 157
- Clients: 31
- AUM: 25,781,041,417
- Management Fee: 0 to 2.5 Percent
- Performance Fee: Unknown Percent
- Client Type: Pooled Investment Vehicles
- Assets Traded: Unspecified
Contact
- Website: https://www.coatue.com/
- Email: [email protected]
- Telephone: 212-715-5100
- Address: 9 West 57th Street 25th Floor, New York, NY 10019
Investment Strategy
According to the brochure submitted to IAPD, Coatue Managements investment strategy is as follows:
Coatue Management invests in U.S. and non-U.S. publicly traded equity securities and equityrelated securities, such as equity swaps and options, as well as U.S. and non-U.S. private companies for certain Clients. Coatue Management concentrates largely on certain sectors, including the global technology, media, telecommunications and some healthcare and consumer sectors, and may also focus on companies in the mobile internet, fintech, software/cloud computing, user-generated content and Chinese internet sectors. Coatue Management also is focused on emerging trends in these sectors, such as, but not limited to, autonomous driving, machine learning, artificial intelligence, aspects of the sharing economy, augmented/virtual reality, live streaming, mobile gaming and certain aspects of financial services. Coatue Management’s investment approach is primarily based on fundamental research, however, Coatue Management also utilizes algorithms in order to select, implement and optimize trading in certain positions. Specifically, both COMF and Long Only Master focus on Public Investments and employ an investment approach based primarily on fundamental research and an overall long-term investment horizon, while certain other Clients focus on Private Investments also primarily using Coatue Management’s proprietary fundamental research. Opportunity Master also focuses on Public Investments but intends to be more concentrated than COMF and Long Only Master and also seeks to take advantage of pockets of value created by recent market dislocations. Although Quant Master also focuses on Public Investments, Coatue Management employs a quantitative/systematic investment strategy and uses investment processes that are very different than those of COMF, Long Only Master, Opportunity Master and each Fund focused on Private Investments. Additionally, with respect to certain positions that Coatue Management has identified for Clients, Coatue Management may employ a combination of quantitative analysis and fundamental research in order to implement and/or optimize the trading for those positions.
Coatue Management invests long and also engages in short selling for certain strategies. In a short sale transaction, Coatue Management sells a security it does not own in anticipation that the market price of that security will decline.
Methods of Analysis
In addition, Coatue Managements methods of analysis include:
Fundamental Analysis
For long ideas, Coatue Management seeks to identify general investment themes for each industry through a top-down analysis to uncover and understand major trends and developments that may affect the sectorsin which it invests on behalf of Clients. Coatue Management generally utilizes horizontal and vertical industry analyses to determine which companies may benefit from new industry breakthroughs or standards, and which companies can reinforce their leadership through scale and competition. The methods of analysis and research process for both Public Investments and Private Investments are expected to be similar.
For short ideas, Coatue Management generally prefers to look for companies with tangible evidence of deterioration in the balance sheet or income statement, as well as managements which it believes are inclined towards fraudulent or inept business practices. Coatue Management generally establishes an investment thesis with a view towards specific events or developments, which should change the market’s assessment of the stock. In addition, short positions may be identified through relationships to long positions or ideas, because, for example, the success of a company or industry may imply the potential failure or decline of a number of other companies or industries.
Coatue Management may also make short term opportunistic investments, including investments in initial public offerings, which may fall outside of these processes and strategies.
As part of its research process, Coatue Management identifies long and short investments through fundamental proprietary financial analysis, including an evaluation of the quality of management, price/earnings multiples and free cash flow analysis, and what-if and risk-reward scenario models. This process is conducted by interviewing companies’ management and employing a variety of screening techniques. Coatue Management views company visits as a crucial part of its effort. Coatue Management’s investment professionals will travel frequently in order to meet with company management teams at their places of business. Coatue Management will make extensive use of proprietary research created using, without limitation, technical experts, trend analyses, custom research projects(including, but not limited to, the use of third party consulting firms) and surveys in its effort to develop its investment thesis and gain a unique perspective. Coatue Management leverages proprietary industry knowledge, conducts custom research and surveys, holds discussions with competitors and consultants, and meets with sell-side and buy-side analysts and industry experts. In addition, Coatue Management buys data sets and certain types of aggregated data from third party vendors. Depending on the particular investment objective of a Client, Coatue Management may base investment decisions (for all or a portion of the Client’s assets) solely on data driven quantitative analysis or a combination of fundamental research and quantitative analysis.
Quantitative Analysis
With respect to its quantitative analysis, Coatue Management combines mathematical and statistical indicators that are based on a fundamental understanding of how companies and economies behave with real time and historical market and alternative data, and then encodes them in proprietary computerized models developed by Coatue Management (the “Models”).
Top 10 Holdings from Form 13F
Reporting Period: 09/30/2020
| Issuer | Share | Value(1000s) | Put/Call |
|---|---|---|---|
| PAYPAL HLDGS INC | 5,293,736 | 1,043,025 | |
| SNOWFLAKE INC | 3,868,970 | 971,111 | |
| TESLA INC | 2,061,994 | 884,616 | |
| DISNEY WALT CO | 6,460,668 | 801,640 | |
| ZOOM VIDEO COMMUNICATIONS IN | 1,698,931 | 798,684 | |
| NETFLIX INC | 1,281,237 | 640,657 | |
| SQUARE INC | 3,938,488 | 640,201 | |
| GLOBAL PMTS INC | 3,101,315 | 550,732 | |
| AMAZON COM INC | 173,665 | 546,824 | |
| VIVINT SOLAR INC | 11,627,907 | 492,442 |
Historical 13F Filings
EdgeGiant has compiled all 13F filings since Q2 2013 for your convenience. You can view historical portfolio position forCoatue Management LLCin our 13F section HERE.
To get the comprehensive list of holdings that fall under 13F regulatory guidelines, check out our write up on how to access and use 13Fs in your personal investment decisions.