Viking Global Investors flagship fund drops 1.2 per cent in October
The hedge fund avoided significant losses seen by rivals after maintaining a cautious stance on artificial intelligence stocks.
Viking Global Investors’ flagship hedge fund lost 1.2 per cent last month, according to a report by Mint citing Bloomberg. The loss reduced the long-short equity fund's gains for the year to approximately 1 per cent.
The fund, which manages about $35 billion, has largely avoided large bets on artificial intelligence (AI) technology. Co-founder Andreas Halvorsen has taken a contrarian position, citing concerns that some companies are overvalued.
Halvorsen stated in a July letter to clients that the firm continues to exercise caution when buying stocks at valuations that offer little margin of safety based on revenue and earnings forecasts. A representative for Viking declined to comment.
As of June 30, technology stocks accounted for 7.5 per cent of Viking's bullish bets, according to a regulatory filing. While the firm held positions in Taiwan Semiconductor Manufacturing Co. and Meta Platforms Inc., it had less tech exposure than other firms.
Other firms, including Coatue Management, Tiger Global Management, and Lone Pine Capital, had higher tech allocations. Lone Pine Capital's fund fell 9 per cent last month, while Tiger Global's fell 8.5 per cent during the same period.