Bannasch’s $1.4 Billion Hedge Fund Looks Past Media Facebook Hit

Facebook Inc. may be under global scrutiny amid a data breach scandal, but its fundamentals remain intact.

Such is the thinking of Eric Bannasch, the founder of the $1.4 billion hedge fund Cadian Capital Management. Facebook has lost 14 percent since mid-March amid concern about how the company handles its users’ personal data. The selloff pushed the stock to trade at 18 times next year’s earnings, a 25 percent discount from its multiple in mid-January, data compiled by Bloomberg show.

Facebook and Google’s parent Alphabet Inc. have been under pressure since last year. Cadian Capital Management holds stakes in ...