Two Hedge Funds Acquired Large Positions in SNAP in the Third Quarter
by HedgeFollow
Snapchat stock fell almost 14% on Wednesday, following the sudden departure of the Company's CFO, Tim Stone.
The CFO, who previously worked for Amazon, was recruited by Snapchat only 8 months ago. The surprise announcement
came amid other challenges being faced by SNAP, including fierce competition from the much bigger rival, Facebook.
Snapchat stock had a troublesome year, falling over 70% from its high of about $20 in early 2018.
Although a few hedge funds closed out their Snap investments, the size of those investments where mostly insignificant.
The CEO Evan Spiegel said that they have to "keep innovating" to compete, citing their focus on revolutionizing
what a camera can do on a smartphone.
Snapchat stock had a troublesome year, falling over 70% from its high of about $20 in early 2018.
Hedge Funds Initiating Large Positions in Snap
Two hedge funds have acquired significant positions in Snap stock. Krishnan of Tybourne Capital Management steadily built up an 11% stake over the past few quarters, while Greenspan of Slate Path Capital bought a 10% position in one go during the third quarter. Other hedge funds only bought minor amounts of Snap.| Manager | Hedge Fund | % of Portfolio | Ownership History |
|---|---|---|---|
 | 9.95% |  | |
 | 11.36% |  |
Although a few hedge funds closed out their Snap investments, the size of those investments where mostly insignificant.
More Challenges facing Snap
Snapchat had trouble with giants like Facebook and Instagram copying newer features that they roll out. Since much of those concepts are not (and cannot be) patented, nothing stops bigger social media outlets from following suit.
The CEO Evan Spiegel said that they have to "keep innovating" to compete, citing their focus on revolutionizing
what a camera can do on a smartphone.