Mutual Funds Double Down on Snap—Will They Hold On?

Fidelity Investments and T. Rowe Price more than doubled their stakes in Snap in the month after the company went public, buying around $500 million of stock between them, an analysis of SEC filings and online portfolio reports show. As a result, the two funds appear to have maintained their pre-IPO status as the biggest mutual fund investors in Snap.

That confirms what the funds have said about their reason for investing in private tech firms: to build a big position with the intention of holding for a long period of time. Having a relationship with the company before it goes public can also help them get a larger allocation of stock in the IPO.