Lone Pine Capital made new bets in several high-performing power producers and one large streaming company in the first quarter, according to a new Securities and Exchange Commission filing. Lone Pine, founded by Stephen Mandel in 1997, added a position in Vistra Corporation of $446.7 million and a stake in Constellation Energy of $161.9 million in the first quarter. Vistra stock has already more than doubled in 2024, soaring 141% through Thursday, while Constellation, the largest U.S. nuclear power plant owner, is up 85%. Both stocks have benefited from intense demand for electricity related to artificial intelligence. The Greenwich, Conn.-based hedge fund acquired more than $445 million worth of Spotify stock at the end of March, according to filings. The stock is up more than 59% this year. Lone Pine also added new positions worth about $368 million and $300 million, respectively, in pharmaceutical and medical supplies distributor McKesson and mobile technology company Upravin. The new additions come as Lone Pine significantly reduces its holdings in three major tech companies: Meta Platforms, Taiwan Semiconductor and Amazon. Meanwhile, hedge funds slightly boosted Microsoft stock. Mr. Mandel reduced his holdings in Meta by more than 25% in the first quarter, when the stock soared 37%. Meta fell 11% in April, almost all of which was due to the Mark Zuckerberg-led platform giving a downbeat outlook in its first-quarter earnings report. Still, the parent company of Instagram and Facebook represents about 8% of the hedge fund’s overall portfolio, making it Mandel’s largest holding, according to Insider Score. Microsoft is in Lone Pine’s third-largest position, behind Taiwan Semiconductor Corp., which Lone Pine cut by 11%. Amazon remains its fourth-largest holding, even after hedge funds cut their stake in the e-commerce retailer by about 18%. One of the companies that has seen a significant increase is cigarette manufacturer Philip Morris International. Mandel has more than doubled his stake in the stock, which is up 7% this year. The hedge fund began trading in its current form in April after completely exiting its positions in UnitedHealth Group and GE Aerospace and spinning off its GE Vernova power business. Mundell is not involved in the day-to-day management of the company, but is one of the so-called “tiger cubs” mentored by legendary hedge fund pioneer Julian Robertson.
Stephen Mandel’s Lone Pine Capital reveals new investment in AI-related power generation company
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