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D1 Capital Partners

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D1 Capital Partners L.P.
Company typePrivate
IndustryInvestment management
FoundedJuly 2018; 6 years ago (July 2018)[1]
FounderDaniel Sundheim[1]
HeadquartersSolow Building, 9 West 57th Street, New York City, New York, U.S.[2]
ProductsHedge fund
Venture capital
AUMUS$24 billion (2022)[3]
Number of employees
65 (2022)
Footnotes / references
[4]

D1 Capital Partners is an American investment firm based in New York City, United States. The firm invests in both public and private markets globally.

Background

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D1 Capital Partners was founded in July 2018 by Daniel Sundheim,[1] who is a minority owner of the Charlotte Hornets.[5] "D1" stands for "Day One,"[6] a concept espoused by Amazon.com, Inc.'s Jeff Bezos as detailed in Amazon's 1997 Letter to Shareholders.[7] Sundheim was previously the Chief Investment Officer of Viking Global Investors[8] and put in more than $500 million of his own money to start the firm.[9] D1 Capital Partners is usually grouped with other Tiger Cub funds due to the firm being spun out from one.[10]

The firm originally managed $3 billion of capital, which rose to $20 billion by the end of 2020 with annualized returns of nearly 30%.[9] D1 returned 60% in 2020.[8]

In January 2021, the firm lost $4 billion (20% of its capital) due to the GameStop short squeeze.[8] As of April 2021, D1 recouped about 90% of its loss in January.[9]

In June 2021, the firm signed a 10-year lease to open another office in Miami, Florida.[11]

In May 2022, It was reported that the fund lost 23% of its value since the start of the year, with its public equities strategy losing 44%.[12]

Business Overview

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D1 Capital Partners focuses on companies within the consumer, business services, financial services, healthcare, industrials, real estate, and technology, media and telecommunication sectors.

Regarding the public markets, the firm invests in publicly traded equities and other related securities such as equity derivatives and convertible bonds. It uses a global Long/short equity strategy focusing on medium to long-term returns.[13]

Regarding the private markets, the firm primarily focuses on taking later-stage non-controlling stakes in companies to help them further expand.[14] Notable private investments include Robinhood,[15] GitLab,[16] Instacart[17] and DriveNets[18]

References

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  1. ^ a b c Levy, Rachael (November 5, 2018). "D1 Capital Partners, a New Hedge Fund, Falters". Wall Street Journal.
  2. ^ "Hedge Fund Leases Full Floor Office Space at 9 West 57th Street". Hedge Fund Office Spaces. November 10, 2017.
  3. ^ "Hedge Fund D1 Borrowed Billions for a Hot Bet That Now Faces Reckoning". Bloomberg.com. June 8, 2022.
  4. ^ "FORM ADV" (PDF). SEC.gov.
  5. ^ "NBA Board of Governors Approves Sale". ESPN.
  6. ^ "Daniel Sundheim Is Planning to Raise $4 Billion Cap for New Hedge Fund". Bloomberg.com. April 17, 2018.
  7. ^ "1997 Letter to Shareholders - Amazon" (PDF). Amazon.com. April 17, 2017.
  8. ^ a b c "Dan Sundheim's $20 Billion D1 Capital Loses About 20% This Month". Bloomberg.com. January 28, 2021.
  9. ^ a b c "Sundheim's D1 Shakes Off Its $4 Billion Reddit-Fueled Fiasco". Bloomberg.com. April 21, 2021.
  10. ^ "Tiger Cubs Crushed by Same Stocks That Made Hedge Funds Billions". Bloomberg.com. May 13, 2022. Retrieved June 9, 2022.
  11. ^ "D1 Capital Partners Signs 10-Year Lease to Open Miami Location". Commercial Observer. June 7, 2021. Retrieved June 9, 2021.
  12. ^ "Hedge Fund D1 Borrowed Billions for a Hot Bet That Now Faces Reckoning". Bloomberg.com. June 8, 2022. Retrieved June 9, 2022.
  13. ^ "D1 Capital Partners Review - SmartAsset | SmartAsset.com". SmartAsset.
  14. ^ "Sundheim Is Said to Plan $4 Billion Cap as New Fund Lures Cash". BloombergQuint.
  15. ^ "Robinhood raises $200M as IPO speculation swirls". Fortune. Retrieved May 7, 2021.
  16. ^ "GitLab hauls in $268M Series E on 2.75B valuation". TechCrunch. September 17, 2019. Retrieved May 7, 2021.
  17. ^ Instacart. "Instacart Announces $600 Million in New Funding Led by D1 Capital Partners". www.prnewswire.com. Retrieved May 7, 2021.
  18. ^ Meir Orbach (January 27, 2021). DriveNets raises $208 million in series B round, attains unicorn status. Calcalist.
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