Comparing Black-and-White Capital LP's Q1 vs. Q2 2021 Holdings: The Rise and Fall of Amazon and DraftKings

Black-and-White Capital LP is a privately owned hedge fund sponsor founded by Jack Byrne in 1976. It primarily invests in the public equity and fixed income markets but also makes venture investments. One of the ways investors keep track of Black-and-White Capital LP's performance is by analyzing its Form 13F filings with the Securities and Exchange Commission, which provides a quarterly report of the hedge fund's holdings.

In this blog post, we'll dive into Black-and-White Capital LP's Q1 vs. Q2 2021 holdings and explore the changes in its top holdings, the reasons behind the shifts, and the implications for the hedge fund and its investors.

Overview of Black-and-White Capital LP's Q1 vs. Q2 2021 Holdings

Black-and-White Capital LP's Q1 2021 holdings were valued at $1.4 billion, which decreased to $769.5 million in Q2 2021, representing a decrease of 45.5%. The hedge fund's top five holdings in Q2 2021 were Amazon.com Inc., Invesco QQQ Trust, Match Group Inc., SPDR S&P 500 ETF Trust, and Booking Holdings Inc.

The biggest change in Black-and-White Capital LP's holdings was its position in DraftKings Inc., which the fund completely sold off in Q2 2021. Additionally, the fund increased its position in Amazon.com Inc. and Western Digital Corp., while decreasing its position in Invesco QQQ Trust, SPDR S&P 500 ETF Trust, and Elastic NV.

Reasons Behind the Shifts in Black-and-White Capital LP's Holdings

Black-and-White Capital LP's decision to sell off its entire position in DraftKings Inc. is an interesting move given the stock's strong performance in Q2 2021. However, this move is consistent with a trend among hedge funds to reduce exposure to high-growth, high-risk stocks in favor of more stable and profitable investments.

The increase in the fund's holdings of Amazon.com Inc. is also notable, signaling confidence in the e-commerce giant's profitability and growth prospects. However, the decreases in the fund's holdings of Invesco QQQ Trust and SPDR S&P 500 ETF Trust suggest a more cautious approach to the broader market.

Implications for Black-and-White Capital LP and Its Investors

Black-and-White Capital LP's Q2 2021 holdings reflect a cautious approach to the market, with the fund reducing its exposure to high-growth stocks and increasing its position in a stable, profitable company like Amazon.com Inc. Depending on the market environment, this strategy can help the fund minimize losses and generate positive returns for its investors.

Overall, analyzing Black-and-White Capital LP's Form 13F filings can provide valuable insights into the hedge fund's investment strategy, the reasons behind its investment decisions, and the implications for its investors. As always, investors should conduct their due diligence and carefully weigh the risks and benefits of any investment opportunity.

In conclusion, Black-and-White Capital LP's Q1 vs. Q2 2021 holdings provide a glimpse into one of the oldest and most respected hedge funds in the business. By examining its top holdings, the reasons behind the shifts, and the implications for the fund and its investors, we can gain a better understanding of its investment strategy and its potential for generating returns.