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Tiger Global slashes portfolio amid losses

Published 08/15/2022, 09:34 PM
Updated 08/15/2022, 09:35 PM
© Reuters.
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By Carolina Mandl

NEW YORK (Reuters) -Investment firm Tiger Global Management, which lost billions of dollars in this year's technology meltdown, slashed or completely exited most of its holdings in the second quarter, potentially cutting its exposure to a recent stock rally, according to a filing released Monday.

Among the companies in which Tiger reduced positions are online used-car seller Carvana, cyber company Crowdstrike Holdings, software maker Snowflake, payments company Nu Holdings , retailer JD (NASDAQ:JD).com, food delivery app Doordash, cryptocurrency exchange Coinbase (NASDAQ:COIN) and Microsoft (NASDAQ:MSFT).

It also dissolved its investments in Robinhood (NASDAQ:HOOD) and Zoom Video Communications (NASDAQ:ZM) Inc and Docusign Inc, the filing showed.

Chase Coleman's hedge fund saw its flagship fund fall 50% in the first half of the year, as worries over the Federal Reserve’s tightening monetary policy and surging inflation slammed many of the growth and technology stocks the firm held. It is unclear, however, what its strategy has been since then. The firm did not immediately comment on the matter.

Many of the shares it had sold have since rebounded in a rally that has seen the tech-heavy Nasdaq composite gain 18.8% in the current quarter.

For instance, Carvana's shares more than doubled in price since the end of June, but Tiger sold its stake almost entirely. Shares of e-commerce and gaming firm Sea Ltd are up 35% in that time frame, while Snowflake has rebounded 23%. Tiger cut its positions in Sea and Snowflake by 39.4% and 68.9%, respectively.

In a letter to investors, the fund said it underestimated the impact of surging inflation but added it was making careful bets.

Quarterly filings known as 13-fs are one of the few ways that funds are required to disclose their long positions, but may not reflect current holdings. While the filings information is dated, they are closely watched for possible investment trends and potential future performance.

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