By A closely followed hedge fund bet big on Reddit stock last quarter.
Coatue Management, a hedge fund led by former Tiger Management employee Philippe Laffont, reported a 6.5 million share stake in the social media company in its latest 13F.
The filing, made with the SEC last week and as of December 31, revealed that the nearly $1.1 billion Reddit stake made up about 3.6% of Coatue’s $59 billion portfolio of publicly traded stocks.
According to Bloomberg, the hedge fund returned 19% in 2024 compared to the S&P 500’s gain of about 23%.
The hedge fund’s recently established stake in the social media company has already proven profitable if it has held onto the shares so far this year.
Based on current prices, Coatue’s Reddit stake is worth about $1.2 billion, representing a year-to-date gain of $141 million, assuming the hedge fund is still holding onto the stock.
While the exact price the fund paid for the stock is not known, shares of Reddit have surged 14% since in 2025 and are up 193% in the last five months. Meanwhile, the S&P 500 has returned 4% year-to-date.
Reddit’s big gains over the past few months were driven by a strong third-quarter earnings report released in late October. The company revealed a surprise profit, year-over-year revenue growth of 68%, and a 47% surge in daily active users.
The stock peaked at about $228 per share on February 10 and has declined about 20% since then. Investors are still digesting Reddit’s fourth-quarter earnings results from last week, which revealed a 52% surge in expenses and a traffic hiccup due to a change in Google’s search engine.
“We expect Reddit to continue making progress across its full-funnel diversification while delivering strong revenue growth & improved profitability,” analysts at JPMorgan wrote in a recent note, adding that future changes to Google search are a longer-term risk.
The bank rates Reddit at “Neutral” and believes it is trading at about fair value with a $185 price target.
Other significant moves made by Coatue during the fourth quarter included a broad sell-off of its Chinese stock holdings and newly established positions in Charles Schwab, Affirm, Okta, and Datadog.
The hedge fund’s three largest holdings as of December 31 were Amazon, Meta Platforms, and Taiwan Semiconductor Manufacturing Company.
Coatue did not respond to a request for comment.
