D1 Capital Exits Meta and Alphabet, Invests in Industrial Stock

In a significant move, D1 Capital, led by Daniel Sundheim, has divested its entire stake in Alphabet and Meta Platforms during the second quarter of 2024. According to a recent regulatory filing, the hedge fund sold approximately $400 million in Alphabet shares and $382 million in Meta shares, marking a strategic shift after these companies had been D1's top holdings in the previous quarter. This decision comes as the tech sector's strong performance begins to wane, with Alphabet shares experiencing a decline of over 12% in the third quarter following a 20% increase in the second quarter. Despite the sell-off of its major tech investments, D1 Capital has made notable additions to its portfolio. The hedge fund established a new position in trucking company XPO, which has quickly become its fifth largest holding, valued at around $272 million. XPO's stock has performed well, gaining approximately 31% this year, indicating D1's interest in diversifying its investments beyond the tech sector. Additionally, D1 Capital has increased its investments in home builder Lennar and concert promoter Live Nation Entertainment, elevating both companies to the top five holdings by the end of June. This shift reflects a broader strategy to capitalize on sectors that may offer more stability amid fluctuating tech stock performance. As of early 2024, D1 Capital managed about $19 billion, showcasing Sundheim's significant experience in the investment landscape, having previously spent nearly 15 years at Viking Global Investors before founding his own firm.