Digital services the darlings of hedge funds

Written by on November 17, 2015 in News with 0 Comments

Portable USB flash drive is wrapped in a dollar(Reuters) – Top U.S. hedge fund management firms, including Soros Fund Management LLC and Viking Global Investors, placed new bets on Netflix Inc while Tiger Global Management increased its stake in the video streaming company during the third quarter, regulatory filings showed on Monday.

Viking bought 4.5 million shares while Tiger Global upped its stake by 15.43 million shares to 18 million. Soros said it owned 317,534 Netflix shares worth $32.79 million as of Sept. 30.

Investors appear to be moving into Netflix as a hedge against the cable television industry, which is facing increasing threats to revenue as consumers switch to streaming services such as Netflix and Hulu, a trend known as “cord cutting.”

Electronic payments provider PayPal Holdings Inc was also a stock darling in the July to September period. Baupost Group LLC took a new stake of 10.9 million shares while Soros took a 4.43 million share stake worth $137.5 million in PayPal.

Billionaire investor activist Carl Icahn showed that he sold his entire stake in e-commerce company eBay Inc in the third quarter while also reporting a position in PayPal

The actions were revealed in quarterly disclosures of hedge fund manager stock holdings, known as 13F filings, with the U.S. Securities and Exchange Commission. They are of great interest to investors wanting to know what savvy traders are buying and selling.

The disclosures are backward-looking and come out 45 days after the end of each quarter. Still, the filings offer a glimpse into what hedge fund managers saw as investment opportunities.

The filings do not disclose short positions, or bets that a stock will fall. As a result, the public filings do not always present a complete picture of a management firm’s stock holdings.

(Reporting By Jennifer Ablan, Sam Forgione and Svea Herbst-Bayliss; Editing by Bill Rigby)

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