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Palihapitiya's Social Capital Dumps 15% of SoFi in Reallocation

'We remain a significant investor in SoFi and are excited about their path ahead,' says Social Capital CEO Chamath Palihapitiya.
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Chamath Palihapitiya, CEO of Social Capital, announced Friday that he is selling 15% of the firm’s stake in online personal-finance platform SoFi Technologies  (SOFI) - Get Free Report.

The market-darling investor wrote on Twitter that he still likes the company, but that he is reallocating money to battery materials maker Mitra Chem, online credit-rating platform Spectral, blockchain infrastructure company Syndica and insurance company Clover Health Investments  (CLOV) - Get Free Report.

Despite strong cross currents in financial markets, “there are still areas … that are ripe for opportunity,” Palihapitiya wrote on Twitter.

“Amazing things are happening in climate science, life sciences and alternative finance. It’s clear that the world needs those solutions now more than ever.”

And what does that mean for Palihapitiya?

“To that end, I decided to sell around 15% of our stake in SoFi to build up some cash reserves and fund several new investments,” he said.

Mitra Chem is a play on next-generation battery production in the U.S., while Spectral is a play on “FICO [Fair Isaac Corp.] scores for Web 3.” Syndica is a play on cloud services for Web 3, Palihapitiya said.

Social Capital expects to increase its investment in Clover Health through its primary offering, added Palihapitiya.

To be sure, he’s not abandoning SoFi. “We remain a significant investor in SoFi and are excited about their path ahead,” Palihapitiya wrote.

Other investors apparently are too. The stock has soared 46% in the past three months, recently trading at $20.83, up 1%.

Morningstar analyst Michael Miller puts fair value for Sofi at $22 a share. 

“Outside of the financial results of SoFi’s lending arm, the company continues to make progress toward its larger vision of being a one-stop shop for its users' financial needs,” Miller wrote last week.