Lone Pine Capital just had one of the most brutal reversals of the year.
Up 44% through June. Now sitting at just 0.6% through Q3.
That's not a drawdown. That's a wipeout.
Their long-only fund—which manages about $14B of their $19B AUM—went from +39% to +6.7%. Nearly all gains erased in three months.
What happened? A toxic mix: their biggest longs rolled over hard, and their shorts ripped against them. Classic two-sided squeeze.
This is what happens when you run concentrated bets in a market that doesn't care about your thesis. Conviction cuts both ways.
No matter how smart the team, no matter how deep the research—when the tape turns, it turns fast.
Up 44% through June. Now sitting at just 0.6% through Q3.
That's not a drawdown. That's a wipeout.
Their long-only fund—which manages about $14B of their $19B AUM—went from +39% to +6.7%. Nearly all gains erased in three months.
What happened? A toxic mix: their biggest longs rolled over hard, and their shorts ripped against them. Classic two-sided squeeze.
This is what happens when you run concentrated bets in a market that doesn't care about your thesis. Conviction cuts both ways.
No matter how smart the team, no matter how deep the research—when the tape turns, it turns fast.