Several hedge funds -- including Wellington Management Group, Sanders Capital and Tiger Global Management -- were among the funds that declared positions in Facebook owner Meta Platforms Inc at the end of September, and could potentially have been hurt by the wipe-out in shares.

Competition, Privacy Challenges

Shares of Meta on Thursday touched their lowest level since July 2020 after the social media giant issued a dismal forecast in which it blamed increased competition and Apple's privacy changes.

Polen Capital Management, Lone Pine Capital, Soroban Capital Partners, Egerton Capital and Marshall Wace also all held positions as of Sept. 30, the most recent U.S. regulatory filings showed.

Together, those eight hedge funds held more than 62 million shares as of Sept. 30, the most recent U.S. regulatory filings showed, which means they could have lost more than $5 billion in paper profits - if they still held those positions and had not hedged them.

Spokespeople for Marshall Wace, Lone Pine and Soroban declined to comment while Wellington, Sanders, Tiger Global, Polen and Egerton were not immediately available for comment.