D1 Capital Partners
{{short description|American investment firm}}
{{Use mdy dates|date=December 2023}}
{{Infobox company
| name = D1 Capital Partners L.P.
| logo = D1 capital partners.png
| image = Solow Building (53872707559).jpg
| image_caption = Headquarters in the Solow Building
| type = Private
| industry = Investment management
| predecessor =
| foundation = {{start date and age|July 2018}}{{cite web |last1=Levy |first1=Rachael |title=D1 Capital Partners, a New Hedge Fund, Falters |url=https://www.wsj.com/amp/articles/new-hedge-fund-falters-1541448036 |website=Wall Street Journal |date=November 5, 2018}}
| location = Solow Building, 9 West 57th Street, New York City, U.S.{{cite web |title=Hedge Fund Leases Full Floor Office Space at 9 West 57th Street |url=https://www.hedgefundspaces.com/hedge-fund-leases-full-floor-office-space-9-west-57th-street/ |website=Hedge Fund Office Spaces |date=November 10, 2017}}
| products = Hedge fund
Venture capital
| assets =
| num_employees = 65 (2022)
| homepage =
| footnotes = {{cite web |title=FORM ADV |url=https://reports.adviserinfo.sec.gov/reports/ADV/297298/PDF/297298.pdf |website=SEC.gov}}
}}
D1 Capital Partners is an American investment firm based in New York City. The firm invests in public and private markets globally.
History and background
D1 Capital Partners was founded in July 2018 by Daniel Sundheim, who is a minority owner of the Charlotte Hornets.{{cite web|title=NBA Board of Governors Approves Sale|url=https://www.espn.com/nba/story/_/id/38060069/nba-board-governors-approve-sale-hornets-sources-say|website=ESPN}} "D1" stands for "Day One,"{{cite web |title=Daniel Sundheim Is Planning to Raise $4 Billion Cap for New Hedge Fund
|url=https://www.bloomberg.com/news/articles/2018-04-17/sundheim-is-said-to-plan-4-billion-cap-as-new-fund-lures-cash |website=Bloomberg.com |language=en |date=April 17, 2018}} a concept espoused by Amazon.com, Inc.'s Jeff Bezos as detailed in Amazon's 1997 Letter to Shareholders.{{cite web |title=1997 Letter to Shareholders - Amazon |url=https://media.corporate-ir.net/media_files/irol/97/97664/reports/Shareholderletter97.pdf |website=Amazon.com |language=en |date=April 17, 2017}} Sundheim was previously the Chief Investment Officer of Viking Global Investors{{cite web |title=Dan Sundheim's $20 Billion D1 Capital Loses About 20% This Month |url=https://www.bloomberg.com/news/articles/2021-01-28/dan-sundheim-s-20-billion-d1-capital-loses-about-20-this-month |website=Bloomberg.com |language=en |date=January 28, 2021}} and put in more than $500 million of his own money to start the firm.{{cite web |title=Sundheim's D1 Shakes Off Its $4 Billion Reddit-Fueled Fiasco |url=https://www.bloomberg.com/news/articles/2021-04-21/dan-sundheim-s-d1-shakes-off-its-4-billion-reddit-fueled-fiasco |website=Bloomberg.com |language=en |date=April 21, 2021}} D1 Capital Partners is usually grouped with other Tiger Cub funds due to the firm being spun out from one.{{Cite news |date=May 13, 2022 |title=Tiger Cubs Crushed by Same Stocks That Made Hedge Funds Billions |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-05-13/tiger-cubs-crushed-by-same-stocks-that-made-hedge-funds-billions |access-date=June 9, 2022}}
The firm originally managed $3 billion of capital, which rose to $20 billion by the end of 2020 with annualized returns of nearly 30%. D1 returned 60% in 2020.
In January 2021, the firm lost $4 billion (20% of its capital) due to the GameStop short squeeze. As of April 2021, D1 recouped about 90% of its loss in January.
In June 2021, the firm signed a 10-year lease to open another office in Miami.{{Cite web|date=June 7, 2021|title=D1 Capital Partners Signs 10-Year Lease to Open Miami Location|url=https://commercialobserver.com/2021/06/d1-miami-lease-related-group-2850-tigertail/|access-date=June 9, 2021|website=Commercial Observer|language=en-US}}
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%.{{Cite news |date=June 8, 2022 |title=Hedge Fund D1 Borrowed Billions for a Hot Bet That Now Faces Reckoning |language=en |work=Bloomberg.com |url=https://www.bloomberg.com/news/articles/2022-06-08/hedge-fund-d1-could-face-losses-as-private-companies-values-plunge |access-date=June 9, 2022}}
In October 2024, it was reported that D1 gained 34% that year through September, after gaining 19% in 2023. D1 had made changes which included reducing its risk profile and increasing diversification of its investment coverage.{{Cite web |last=Taub |first=Steve |date=2024-10-15 |title=D1 Capital’s Dan Sundheim Makes Changes After Two Consecutive Knockdowns |url=https://www.institutionalinvestor.com/article/2dw7rnwdclm7wl4q9tr7k/hedge-funds/d1-capitals-dan-sundheim-makes-changes-after-two-consecutive-knockdowns |access-date=2024-12-02 |website=Institutional Investor |language=en}}
Strategy and operations
D1 Capital Partners focuses on companies within the consumer, business services, financial services, healthcare, industrials, real estate, and technology, media and telecommunication sectors. Between June 2022 and April 2024, D1 Capital's public portfolio grew by 85%, following strategic shifts in risk management and increased stock diversification.{{Cite news |last=Pollard |first=Amelia |date=2025-02-25 |title=D1 Capital’s bet on European turnarounds aids its own recovery |url=https://www.ft.com/content/df70e7b5-f4ac-4ec7-b466-8b7950801ee9 |access-date=2025-05-16 |work=Financial Times}}
= Public strategy =
D1 Capital Partners invests in publicly traded equities as well as related securities, including equity derivatives and convertible bonds. The firm employs a global long/short equity strategy focusing on generating medium- to long-term returns.{{cite web |title=D1 Capital Partners Review - SmartAsset {{!}} SmartAsset.com |url=https://smartasset.com/financial-advisor/d1-capital-partners-review |website=SmartAsset |language=en}}
= Private strategy =
In the private markets, D1 Capital Partners primarily takes later-stage non-controlling stakes in growth companies to support their expansion.{{cite web |title=Sundheim Is Said to Plan $4 Billion Cap as New Fund Lures Cash |url=https://www.bloombergquint.com/markets/sundheim-is-said-to-plan-4-billion-cap-as-new-fund-lures-cash |website=BloombergQuint |language=en}} Notable private investments include Robinhood,{{Cite web |title=Robinhood raises $200M as IPO speculation swirls |url=https://fortune.com/2020/08/17/robinhood-ipo-speculation-funding-round-series-g-predictions/ |access-date=May 7, 2021 |website=Fortune |language=en}} GitLab,{{Cite web |date=September 17, 2019 |title=GitLab hauls in $268M Series E on 2.75B valuation |url=https://techcrunch.com/2019/09/17/gitlab-hauls-in-268m-series-e-on-2-768b-valuation/ |access-date=May 7, 2021 |website=TechCrunch |language=en-US }} Instacart{{Cite web |last=Instacart |title=Instacart Announces $600 Million in New Funding Led by D1 Capital Partners |url=https://www.prnewswire.com/news-releases/instacart-announces-600-million-in-new-funding-led-by-d1-capital-partners-300731507.html |access-date=May 7, 2021 |website=www.prnewswire.com |language=en}} and DriveNetsMeir Orbach (January 27, 2021). [https://www.calcalistech.com/ctech/articles/0,7340,L-3889911,00.html DriveNets raises $208 million in series B round, attains unicorn status]. Calcalist.
References
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{{Hedge funds}}{{Private equity and venture capital}}
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Category:2018 establishments in New York City
Category:Financial services companies established in 2018
Category:Hedge fund firms in New York City
Category:Investment management companies of the United States