Hedge fund Tiger Global is on the brink of collapsing.
WSJ reports the hedge fund is lost 52% for the year up to May.
It was down 34% this year through March but the institution keeps sinking.
Melvin Capital threw in the towel after suffering several losses this year.
Is hedge fund Tiger Global the next one to go?
Let’s discuss it.
Welcome to Franknez.com – if you haven’t joined the newsletter, be sure to do that below. I’m publishing market news and updates daily.
Let’s dive right into it!
Join the newsletter to become part of an activist group fighting for market transparency!
Receive weekly market news to stay up to date.
Hedge fund empires crumble
Melvin Capital lost a staggering 20.6% the first quarter this year alone.
In 2021, they took a heavier hit with 50% in losses.
Now Gabe Plotkin’s Melvin Capital is shutting down end of June.
The Tiger Cubs, an alliance consisting of hedge fund Tiger Global Management, Lone Pine Capital, Coatue Management, Maverick Capital, Viking Global Investors and D1 Capital are facing massive losses this year too.
According to Bloomberg, majority of the Tiger Cubs stock picks are in tech stocks.
Which as we know, have been plummeting all year.
Tiger Global exited 83 positions depicted in the chart below and entered only 2 new positions.
Coatue Management is another hedge fund who has been struggling to keep its doors open this year.
Last year investors demanded to pull out $250 million from the hedge fund but Coatue was unable to meet demands.
Coatue said the money they could not deliver to their clients was being held in private companies, making it difficult to liquidate.
Today we see Coatue Management exited 35 stocks and only entered 12 so far.
The rest of the cubs aren’t doing so well with everyone exiting more positions than entering them.
Hence the reason why we’ve seen the market fall all year.
Will hedge fund Tiger Global close?
Although the hedge fund has wiped out more than $16 billion in assets under management, Tiger Global continues to hold on.
“We take very seriously that our recent performance does not live up to the standards we have set for ourselves over the last 21 years and that you rightfully expect. Our team remains maximally motivated to earn back recent losses,” the hedge fund wrote.
But even then, the hedge fund has struggled to find a winning strategy.
Tiger Global was down more than 34% the first quarter of 2022.
And instead of finding a solution, the hedge fund sank to a total of 52% halfway through Q2.
Things aren’t looking so good for the hedge fund.
What do you think?
Will hedge fund Tiger Global be the next institution to fall?
Leave your thoughts in the comment section of the blog down below.