Tiger Global Funds Cut China Exposure And Pause New Stock Bets
(Bloomberg) -- Tiger Global Management, a long-time investor in China, has pulled back from the region and is pausing future stock investments.
The firm's hedge and long-only funds have been reducing their exposure to the country this year and continued to do so last month, shrinking the percentage of Tiger Global's portfolio there from the mid-teens to mid-single digits, according to people familiar with the matter.Â
The adjustments reflect the firm's view that geopolitical tensions and China's Zero Covid policy, with lockdowns and quarantines, are all the more likely to persist after President Xi Jinping last month clinched a precedent-defying third term in office. Still, the money manager also sees a potential for the president to stimulate the economy to hit goals for the future.
Tiger Global gained renown for its early bets on China, snapping up battered internet stocks there in 2002, but the market has become a minefield for investors in the past few years. Chinese regulators cracked down on the tech sector last year, imposing new restrictions and taking some executives into custody, sending once-high-flying stocks tumbling. Lockdowns have complicated companies' operations. There are also heightened tensions with the US.
The Hang Seng Index is down almost 44% since the end of 2020 through Thursday, compared with the S&P 500's decline of less than 1%.
For now, Chase Coleman's firm doesn't intend to snap up Chinese stocks on the cheap and is taking a wait-and-see approach to investments there until Xi's next public statements, the people said. Instead, it's focusing on India and Southeast Asia.Â
The funds' remaining China exposure is tied mostly to food delivery titan Meituan and online retailer JD.com, though even those positions have shrunk, the people said.Â
A company spokeswoman declined to comment. The Wall Street Journal reported the firm's decision earlier Thursday.
(Updates with Tiger Global's background in China from fourth paragraph.)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
