Coatue Management, the hedge fund led by Philippe Laffont, made a bold $1.1bn bet on Reddit in the fourth quarter, with the firm’s latest SEC 13F filing revealing a 6.5 million share stake in the social media platform, according to a report by Business Insider.

Reddit’s stock has nearly tripled since October, fuelled by strong earnings and user growth, meaning that if Coatue has maintained its position, its original stake – which represented 3.6% of its $59bn portfolio – could now be worth approximately $1.2bn, marking a $141m gain year-to-date.

While Coatue's exact entry price is unknown, Reddit shares have climbed 14% in 2025 and 193% over the past five months, vastly outperforming the S&P 500’s 4% year-to-date return.

Reddit’s surge was driven by a blockbuster Q3 earnings report in October revealing a surprise profit, 68% year-on-year revenue growth, and a 47% jump in daily active users.

The stock though has since retreated 20% from its February peak of $228 as investors assess rising expenses (+52% in Q4) and concerns over changes in Google’s search algorithm, which briefly impacted traffic.