Key Takeaways
- • Lone Pine Capital's Cypress hedge fund is up just 0.6% year to date through September, after being up 44% through June, according to people familiar with the matter cited by Bloomberg.
- • The fund fell nearly 25% in July alone and posted a roughly 30% decline in the third quarter, driven by wrong-way stock bets and short positions.
- • Publisher coverage reports a letter to investors dated October 14 in which Steve Mandel's firm described the quarter as a "tough third quarter."
- • Losses were concentrated in AI and tech holdings, with reporting indicating the fund's shorts fared worse than its longs.
Summary
Lone Pine Capital's flagship hedge fund has surrendered nearly all of its first-half gains after a sharp third-quarter reversal, according to Bloomberg. The fund, which was up 44% through June, is now up just 0.6% for the year through September, according to people familiar with the matter who requested anonymity to discuss fund performance.
The Cypress fund tumbled nearly 25% in July alone and posted additional losses in subsequent months, producing a roughly 30% decline in the third quarter. Bloomberg attributes the reversal to wrong-way stock bets and short wagers. Additional coverage describes the losses as tied to AI and technology stocks, which slid during the period, and notes that the performance gap between the fund's longs and shorts suggests the short book underperformed the long book.
Steve Mandel's firm, described in coverage as a $19 billion hedge fund manager, reportedly told investors in a letter dated October 14 that the fund had a "tough third quarter." Other coverage reports that the firm's two funds, Lone Cypress and Lone Cascade, fell 2.1% and 2.6%, respectively, for the quarter, a figure that differs from the Cypress decline cited by Bloomberg and should be read as a separate data point rather than a reconciled figure.
Earlier 2026 portfolio disclosures showed Lone Pine trimming its position in Meta by more than 340,000 shares, leaving a holding above $971 million, and closing a $290 million Nvidia position. Those positions are cited here as prior filings and not as the source of the third-quarter losses.
The Cypress fund tumbled nearly 25% in July alone and posted additional losses in subsequent months, producing a roughly 30% decline in the third quarter. Bloomberg attributes the reversal to wrong-way stock bets and short wagers. Additional coverage describes the losses as tied to AI and technology stocks, which slid during the period, and notes that the performance gap between the fund's longs and shorts suggests the short book underperformed the long book.
Steve Mandel's firm, described in coverage as a $19 billion hedge fund manager, reportedly told investors in a letter dated October 14 that the fund had a "tough third quarter." Other coverage reports that the firm's two funds, Lone Cypress and Lone Cascade, fell 2.1% and 2.6%, respectively, for the quarter, a figure that differs from the Cypress decline cited by Bloomberg and should be read as a separate data point rather than a reconciled figure.
Earlier 2026 portfolio disclosures showed Lone Pine trimming its position in Meta by more than 340,000 shares, leaving a holding above $971 million, and closing a $290 million Nvidia position. Those positions are cited here as prior filings and not as the source of the third-quarter losses.
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