November 10, 2015 / 6:03 PM / 3 years ago

High-profile Fidelity funds cut value of Snapchat by 25 percent

BOSTON (Reuters) - Two high-profile funds at Fidelity Investments have cut the value of their stake in Snapchat by 25 percent, just months after initial investments in the high-flying tech company, according to recent disclosures by the Boston-based company.

A billboard displays the logo of Snapchat above Times Square in New York March 12, 2015. REUTERS/Lucas Jackson

The Financial Times on Tuesday first reported the reduced valuation of Snapchat by Fidelity. Snapchat, which allows its more than 100 million users to send messages that disappear in seconds, is considered one of Silicon Valley’s most highly valued startups. As of May, the messaging app company was valued at $16 billion.

The Fidelity Growth Company Fund, run by portfolio manager Steve Wymer, reported holding $10.37 million worth of Snapchat at the end of September. The investment, made in late March, only accounts for 0.028 percent of the fund’s assets.

That stake, however, values Snapchat at $22.91 a share, down from $30.72 a share in previous fund disclosures.

The Fidelity Blue Chip Growth Fund owned $15.1 million worth of Snapchat at the end of September, down from the $20.312 million disclosed previously.

Reporting By Tim McLaughlin

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