Sundheim’s D1 Tumbled 6% in March as Biggest Stock Bets Soured

D1 Capital Partners’ stock book fell 6% in March, according to people familiar with the matter, making Dan Sundheim’s firm one of the worst-performing stock pickers that month.

Industrial company Flowserve Corp. and home-building products maker James Hardie Industries Plc, the six biggest stock bets by year-end all lost money, falling 17% and 22%, respectively. The hedge fund is still up 2.7% for the year, one of the sources said.

Meanwhile, the person said that D1 still managed to raise $2.7 billion for its new private sector-focused fund and asked not to be identified because the information is confidential. It raised an additional $300 million in joint investments, allowing clients to back specific deals alongside the fund.

Stocks and bonds fell and oil prices rose in March as the United States and Israel attacked Iran and threw the Middle East into turmoil. Viking Global Investors, Coatue Management and Maverick Capital reported declines of 5% or less in the hedge fund. Tiger Global Management fared even worse, falling 7.3%.

A representative for D1 declined to comment.

D1 has become a major venture capital and late-stage growth investor; Such bets account for about two-thirds of the $35 billion the firm manages. The rest is parked in stocks.

Last year, D1’s bet on SpaceX accounted for about 45% of its private sector exposure, leading to the portfolio’s 39% gain in 2025. Without this bet, the private sector book would have returned 18%. Elon Musk’s company, which was valued at $800 billion in December, is expected to go public this year.

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