Big Hedge Funds Invested in Twitter Before Musk Revealed Buyout Plan

Prominent hedge funds, together with Point72 Asset Management and Bridgewater Associates, invested in Twitter through the first quarter, placing them on track to reap huge beneficial properties early within the second quarter when billionaire Elon Musk unveiled plans to purchase the corporate.

Point72, run by Steven A. Cohen, purchased 1.5 million widespread shares value $58.8 million (roughly Rs. 455 crore) whereas Balyasny Capital Management bought roughly the identical quantity, in line with regulatory filings and information compiled by Symmetric.io. Holocene Advisors purchased $56 million (roughly Rs. 434 crore) value of shares and Bridgewater Associates, based by Ray Dalio, took a stake value $8.3 million (roughly 64 crore).

Hedge funds DE Shaw & Company and Bandera Partners additionally bought hundreds of thousands of {dollars} value of shares, including to the positions they already owned.

The so-called 13F filings present what buyers owned on March 31. In early April, Musk made a submitting that confirmed him as a brand new shareholder — a growth that pushed the fill up and down as he unveiled plans for the corporate.

News that Musk, chief government officer of electrical automotive maker Tesla, owned 9.2 % of the social media platform despatched Twitter shares surging greater than 30 % in early April, providing a shiny spot amid the know-how sector rout. By the time the corporate introduced in late April that Musk would take Twitter personal, the shares climbed increased.

Symmetric.io information present that 20 fund corporations elevated their Twitter stakes and 11 made new investments through the first three months of the yr. While the regulatory filings are backward trying, they’re broadly watched for funding traits. If shareholders who held positions on the finish of March caught with Twitter in early April, they possible noticed huge beneficial properties.

But there have been additionally distinguished buyers who moved in the other way, chopping or liquidating positions after the inventory worth had slipped over months.

They misplaced religion in Twitter through the first quarter after the inventory worth misplaced roughly 36 % of its worth between October and the tip of January.

The filings and information from Symmetric.io present that 32 corporations lower their stakes and 37 exited altogether.

Southpoint Capital Advisors exited, promoting $138 million (roughly Rs. 1,069 crore) value of inventory, whereas Millennium Management and Citadel every lower their holdings, the filings present.

Representatives for the funds both declined to remark or didn’t reply to requests for remark.

© Thomson Reuters 2022