As the world begins to emerge from lockdown, some hedge funds are slashing technology investments that thrived in the work-from-home era.

Philippe Laffont’s Coatue Management slashed many of its tech holdings that have benefited from the pandemic-induced lockdowns, including most of its stake in fitness-equipment maker Peloton Interactive Inc. The fund cut its exposure to cyber-security solutions company Crowdstrike Holdings Inc. and and Zoom Video Communications Inc. in half. Overall, its exposure to technology stocks fell by about 8%, data compiled by Bloomberg show.

Alex Sacerdote’s Whale Rock Capital Management exited its investment in Zoom, and decreased stakes in Peloton and Crowdstrike. The hedge fund trimmed its overall exposure to tech stocks by about 5%, Bloomberg data show.

The filings offer a glimpse into the maneuvering by major hedge fund managers and other investors during the first quarter of 2021, a tumultuous period for the industry marked by a Reddit-fueled trading frenzy and the implosion of Bill Hwang’s Archegos Capital Management. At the same time, investors are looking toward a post-Covid 19 economic recovery where the world gradually reopens and people return to work.

On average, hedge funds gained 4.6% in the first three months of the year, according to data compiled by Bloomberg. That lagged behind the S&P 500 Index, which rose 6.2% on a total-return basis.

Lee Ainslie’s Maverick Capital joined fellow so-called Tiger cub Coatue in trimming its overall exposure to tech stocks by almost 17%, Bloomberg data show. It ditched minor holdings in Zoom and DocuSign Inc., a popular app for signing contracts and other documents digitally.

Trading in Amazon.com Inc., which had soared in the pandemic amid a boom in online shopping by customers stuck at home, was a mixed bag among the Tiger cubs. While both Maverick and Coatue added to their holdings of the behemoth retailer, Viking Global Management slightly trimmed its exposure. Shares of Amazon have climbed 5.7% since the end of the first quarter and are little changed this year.

Other findings from first quarter 13F filings include:
Financials were key as they broadly trailed other cyclical sectors due in part to low interest rates. Dan Sundheim’s D1 Capital liquidated its stake in JPMorgan Chase & Co., jettisoning a position worth more than $1 billion as of March 31. Viking also decreased its JPMorgan stake, but started a new position in Bank of America Corp. Stan Druckenmiller’s Duquesne took a new position in Citigroup Inc. and has a small holding in JPMorgan. Berkshire Hathaway Inc., meanwhile, cut its position in Wells Fargo. ValueAct dumped its remaining stake in Morgan Stanley.

GameStop Corp. was among the companies that skyrocketed during the Reddit-fueled trading frenzy at the beginning of the year. Maverick Capital exited its stake in the video-game retailer, valued at $88 million at the end of December, when the shares traded at $18.84. GameStop shares hit a record $347.51 on Jan. 27.

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