Tiger Global’s Hedge Fund Sinks 34% This Year as Key Stocks Fall
(Bloomberg) -- Things have gone from bad to worse at Tiger Global Management's flagship hedge fund.
The vehicle fell nearly 34% in the first quarter, due to poor-performing stocks and markdowns of private holdings, according to an investor letter seen by Bloomberg.
The hedge fund tumbled more than 13% in March, according to a person familiar with the matter, capping three straight losing months and a tough 2021. The decline was 7% last year, its first annual drop since 2016.
“Stock declines in our focus areas have been steeper, faster, and longer lasting than in prior drawdowns,” the firm said in Friday's letter, signed by the investing team. While Tiger Global's shorts generated gains, “they have not kept pace with the decline in our longs.”
All six of Tiger Global's biggest stock holdings at year-end, including JD.com Inc. and Microsoft Corp., have declined this year and most fell by double digits.
The firm “adjusted valuations down” for its private investments to account for pressure on their public-market peers, the firm said in the letter. The hedge fund owns shares of private companies including ByteDance, Stripe, Checkout, and Databricks.
A spokeswoman for Chase Coleman's $100 billion firm declined to comment.
Read more: Tiger Global Lost 7% Last Year, First Annual Drop Since 2016
Tiger Global's long-only fund sank about 36% in the first quarter, while its Crossover fund, which invests in public and private companies, fell about 21%, according to the letter.
“In hindsight, we should have sold more shares across our portfolio in 2021 than we did,” the firm said. “We are reassessing and refining our models using all the inputs available to us.”
The firm manages $35 billion across its hedge, long-only and crossover funds, while the rest of the assets are in its rapidly expanding venture-capital unit. Tiger also said it recently closed its PIP 15 venture fund with $12.7 billion.
“In this moment, we are humbled, but steady in our conviction and confident about the go-forward opportunity,” the firm wrote.
©2022 Bloomberg L.P.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
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.
