D1 Capital Partners continues to beat its peers. The hedge fund’s public portfolio gained 4.4 percent in April and is now up 11.8 percent for the year, according to a source who has seen the results.
This compares favorably with the S&P 500, which was down 4.9 percent over the first four months of the year, including dividends. The results make D1 one of the better-performing hedge funds among Tiger Management descendants.
D1’s public portfolio has compounded at a 33 percent net annualized clip since June 2022, when the firm made a series of changes designed to reduce risk and aggressiveness and increase diversification following two sharp losses, the details of which were previously chronicled by Institutional Investor. D1, headed by Tiger Grandcub Dan Sundheim, declined to comment.
The hedge fund emphasizes industrials and consumer stocks. The drivers of results in April and for the year could not be determined, including the performance of the short book or how its sizable portfolio of European stocks has fared.
In addition, D1’s U.S. stock holdings as of the end of the first quarter are not expected to be publicly disclosed for another week. It is possible there were major positions that drove returns in April that weren’t holdings or prominent positions at the close of the fourth quarter.
Still, at year-end, D1’s largest U.S.-listed long position remained Maplebear, the parent of e-commerce company Instacart, which accounted for about 15.5 percent of U.S. long assets. The stock was flat in April but surged nearly 15 percent in the first week of May.
No. 2 long position Philip Morris International has been perhaps the hedge fund’s most consistent U.S.-listed performer and a major driver of performance. Its stock rose about 8 percent in April and more than 42 percent through the first four months of the year.
Most of the rest of D1’s largest positions, however, had varied results.
Royal Caribbean, the third-largest long position, was up more than 4 percent in April but has fallen nearly 7 percent this year after sailing through an explosive 2024. No. 4 long Constellation Brands, a distiller, was up 2.2 percent in April but has dropped 15 percent for the year. In the fourth quarter, D1 nearly tripled its position in the stock.
No. 5 long position Elevance Health was down about 3.5 percent in April but climbed 14 percent for the year. No. 10 long 3M declined about 5.4 percent in April but was up nearly 8 percent for the year.
