Sundheim's D1 Suffers 6% Decline in March Amid Disappointing Stock Performances

D1 Capital Partners Suffers from Poor Stock Picks in March

D1 Capital Partners, a prominent hedge fund managed by Dan Sundheim, experienced a decline of 6% in its equities book in March, making it one of the worst-performing stock-pickers for the month. This decline is significant, as the firm's six-largest stock bets as of year-end all resulted in losses. Two of the largest losers were industrials company Flowserve Corp. and home-building-products maker James Hardie Industries Plc, which dropped 17% and 22%, respectively.

Despite this setback, D1 Capital Partners remains up 2.7% for the year, a notable performance given the challenges faced by the hedge fund industry in March. The firm's privates-focused fund, which was launched recently, managed to raise $2.7 billion in capital, a significant achievement. In addition, D1 gathered an extra $300 million for co-investments, allowing clients to participate in specific deals alongside the fund.

The hedge fund industry as a whole faced significant challenges in March, with stocks and bonds experiencing a decline and oil prices surging due to the US and Israel's attack on Iran, which plunged the Middle East into turmoil. Other notable hedge funds, including Viking Global Investors, Coatue Management, and Maverick Capital, posted declines of 5% or less. In contrast, Tiger Global Management fared worse, falling 7.3%.

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D1 Capital Partners has grown into a significant player in the venture capital and late-stage growth investment space, managing approximately $35 billion in assets. Roughly two-thirds of these assets are invested in private companies, while the remaining portion is allocated to stocks. Last year, D1's bet on SpaceX accounted for approximately 45% of its private exposure, driving a 39% gain in the privates book in 2025. Without this wager, the private book would have returned 18%. SpaceX, which notched an $800 billion valuation in December, is expected to go public this year.

Note: The exact decline for Viking Global Investors, Coatue Management, and Maverick Capital is not specified in the article, so their decline is listed as "Less than 5%".