D1 Hedge Fund Marks Down Privates, Gains 1.9% in First Quarter

D1 Capital Partners marked down its private investments by 2.5% in the first quarter, leaving the hedge fund up 1.9% this year.

(Bloomberg) — D1 Capital Partners marked down its private investments by 2.5% in the first quarter, leaving the hedge fund up 1.9% this year.

The firm’s stock wagers gained 6% during that period, according to a person familiar with the matter, referring to returns for its main share class — 35% of which is invested in privates. Two employees are also leaving D1.

A spokesperson for Dan Sundheim’s firm declined to comment.

Like many hedge funds, D1 is recovering from a tough 2022, when tech stocks and private valuations plunged. Tiger Global Management, Light Street Capital Management and Coatue Management all gained in the first quarter after double-digit losses last year.

While D1 sank 30.5% last year, its equity portfolio rallied 25% between mid-2022 and March, beating the S&P 500, the person said.

D1’s biggest private wagers are Space Exploration Technologies Corp., Lineage Logistics, Collectors Universe, Bolt and Instacart. Its largest sector exposures for non-public companies are real estate and industrials.

The firm also had staff changes, people said. Teddy Gleser, head of technology, media and telecom investing, was promoted to director of research, while partner Nilam Ganenthiran is leaving after working in operations with portfolio companies since last year.

Principal Prateek Bhide, who has worked in investments since 2018, is also leaving.

Ganenthiran and Bhide didn’t reply to messages seeking comment.

New York-based D1 has 64 employees, including 25 who work on investments.

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