Tiger Global cuts bets on tech groups after stock market sell-off

Tiger Global, the hedge fund known for making big bets on tech companies, has cut its shareholding and shed stakes in the likes of Netflix and Rivian as it suffered heavy losses during this year’s stock market crash.

The total value of Tiger Global’s public stock positions fell from $46 billion at the end of last year to just over $26 billion at the end of the first quarter, according to regulatory filings released Monday. The decline in value reflected lower stock market valuations as well as stock sales.

In a significant exit for the New York-based firm, Tiger Global sold its entire stake in several well-known consumer technology companies, including dating app Bumble, vacation rental company Airbnb and Didi, the Chinese group of shared transportation.

It also significantly reduced its exposure to trading app Robinhood, selling almost 80 percent of its stake, and Peloton, the beleaguered connected fitness company. Tiger Global declined to comment.

Tech stocks have taken a hit this year as investors grapple with higher inflation and interest rates and become wary of companies that thrived during the coronavirus pandemic but have fallen from grace as economies shrink. they have reopened.

Tiger Global’s dramatic pullback is the latest evidence of a rocky start to the year for the hedge fund and its founder Chase Coleman, who earned a reputation as one of the world’s foremost growth investors after establishing the firm in 2001.

Monday’s disclosures were made in routine quarterly filings known as 13-Fs. They came after the Financial Times reported this month that Tiger Global had suffered losses of around $17 billion during this year’s tech sell-off, one of the biggest dollar declines for a hedge fund in history.

Tiger Global told investors this month that its stock-picking funds had suffered heavy losses, leaving them well below previous peaks. Tiger Global’s main hedge fund fell 15.2 percent in April, bringing this year’s losses to 43.7 percent. Another fund that only invests in “long” stocks fell 51.7 percent between the beginning of the year and the end of April.

Tiger Global called the results “very disappointing” in a letter to investors, adding that “markets have been uncooperative given the macroeconomic backdrop.”

The hedge fund has gained notoriety for an aggressive style of investing in private startups that spooked some rival venture capitalists. He told investors in March that he had raised $12.7 billion for his newest venture capital fund, the largest of its kind.

Unlike some of Tiger Global’s previous funds, the new vehicle has focused on making investments in relatively young start-ups. Tiger Global told investors that more than half of the fund’s investments were in Series A or Series B deals, typically the first or second largest funding for private tech companies.

Some of Tiger Global’s first-quarter share sales were from companies it backed as private startups. For example, the firm sold more than 70 percent of its stake in cryptocurrency exchange Coinbase, which totaled $724 million at the end of last year.

He also sold 95 percent of his shares in software company UiPath, a position that had been valued at $354 million.

Third Point, the hedge fund run by Daniel Loeb, has also divested some of its biggest technology investments.

The New York-based fund sold its entire stake in Google’s parent company Alphabet and more than 90 percent of its position in Amazon during the first quarter, according to filings. It also sold a more than $600 million stake in financial technology firm Upstart, which it had backed as a private start-up.

In a letter to investors this month, Loeb said the fund had “taken a significantly more defensive stance” from the first quarter due to “valuation concerns in the current interest rate environment, geopolitical uncertainty and the emerging weakness in major world economies”. .

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