Tag: Tiger Global

Tiger Global Parts Ways with Partner Who Caused Massive Losses

Tiger Global Sam Harland
Market News: Tiger Global parts ways with Sam Harland

Tiger Global just parted ways with Sam Harland, the partner responsible for sinking the hedge fund when it betted on Carvana.

The hedge fund suffered 52% in losses this year through May.

Their average cost basis is $105.80, more than five times the $24.27 level the stock closed on Friday.

Both Harland and Tiger Global Management declined to comment on his departure according to Bloomberg.

Here’s the latest market news.

franknez.com

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 funds struggle to stay afloat

Hedge funds seem to be stranded on a sinking ship as losses accumulate this year.

One hedge fund who betted against GameStop is closing this month.

Last year many hedge funds were forced to cut their losses and throw in the towel on losing bets.

Tiger Global Management closed 2021 with a 7% loss.

They reported a 52% loss this year through May.

Tiger Management Losses
Tiger Global Management losses (blue) | Tiger Global Management News

The hedge fund may be on track for its worst year yet.

Earlier this year we saw Citadel and other hedge funds faced default on Russian bonds from tech company Yandex.

Investors tried pulling out $250 million from Coatue Management but the hedge fund couldn’t meet investors demands.

Aside from the shorting of ‘meme stocks’, hedge funds are also getting burned from tech stocks falling.

The NASDAQ has fallen nearly -32% this year-to-date taking down every major tech company down with it.

Amazon (AMZN) is down more than -37% this year, Tesla (TSLA) -45%, and Apple (AAPL ) -27.72%.

Carvana is down nearly -90%, one of the heaviest held assets by Tiger Global Management.

Tiger Cubs ditch positions

The Tiger Cubs alliance consists of Tiger Global Management, Lone Pine Capital, Coatue Management, Maverick Capital, Viking Global Investors and D1 Capital.

According to Bloomberg, majority of the Tiger Cubs stock picks are in tech stocks.

Tiger Global exited 83 positions depicted in the chart below and entered only 2 new positions.

Tiger Cubs ditch positions
Tiger Cubs ditch positions

The Tiger Cubs have been known for piling into the same or similar stocks primarily because they all had the same mentor.

Below is a list of only some tech companies the Tiger Cubs have recently reduced from their positions.

Big name companies include Carvana, DoorDash, Netflix, and Shopify to name a few.

Tiger Cubs Losses
Tiger Cubs Losses | Tiger Global Management News

These companies might have been extremely convenient during the pandemic lockdowns, but the truth is people are going out now.

Now that gyms are open to the public, people have no need for Peloton.

Netflix couldn’t replace the movie theatres, and so on.

Some experiences are simply irreplaceable.

And it’s showing in tech company stock.

I’d love to hear your thoughts on the matter.

Join the discussion in the comment section of the blog down below.

Subscribe to the newsletter for more market news or connect with me on social media for daily content.

You can follow me on: Twitter | Facebook | LinkedIn


Hedge Fund Tiger Global on Brink of Shutting Down?

Hedge fund Tiger Global
Market News: Hedge Fund Tiger Global down more than 50% this year.

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.

franknez.com

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?

Tiger Global Hedge Fund

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.

You can follow me on: Twitter | Facebook | LinkedIn or Instagram

Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

The Tiger Cubs Are on The Brink of Collapsing

Tiger Cubs Hedge Fund
Market News: Tiger Cubs face disturbing losses as tech stocks fall

(Bloomberg) Hedge fund managers known as Tiger Cubs are facing serious carnage in the market.

The alliance consists of Tiger Global Management, Lone Pine Capital, Coatue Management, Maverick Capital, Viking Global Investors and D1 Capital 

Billions were made in tech stocks, but gains have now evaporated.

Tech stocks have fallen the first quarter of 2022 and have bled into the second quarter this year.

Is it possible the Tiger Cubs are the next hedge fund managers to join Melvin Capital’s grand exit?

Let’s discuss it.

franknez.com

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.

NASDAQ plummets in 2022

The tech-heavy NASDAQ 100 has fallen more than 29% this year.

It’s down more than 11% from the S&P 500 (down 18.47% YTD).

According to Bloomberg, majority of the Tiger Cubs stock picks are in tech stocks.

Tiger Global exited 83 positions depicted in the chart below and entered only 2 new positions.

The hedge fund sank 34% the first quarter of 2022.

Tiger Cubs 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.

Tiger Cubs cut their losses

Below you’ll find a chart showing the worst-performing stocks widely held by the Tiger Cubs.

Big name companies include Carvana, DoorDash, Netflix, and Shopify to name a few.

Tiger Cubs Losses
Source – Bloomberg

The Tiger Cubs have been known for piling into the same or similar stocks since they all had the same mentor.

These hedge funds are facing significant losses despite being in it together.

Melvin Capital saw a 50% loss in 2021 and another 20.6% during the first quarter of 2022 before throwing in the towel.

The hedge fund was destroyed by retail investors when it decided to bet against game retailer GameStop and other ‘meme stocks’.

Ken Griffin defended Gabe Plotkin’s Melvin Capital in a Bloomberg exclusive attacking retail investors.

The Citadel founders said retail investors wiped out teacher’s pension plans by bankrupting Melvin Capital.

And the retail community is biting back, speaking the truth.

CALPERS, the largest pension fund in America loaded up on AMC and GameStop and sold Netflix, though.

Ray Dalio’s Bridgewater sold Tesla this Q1 and bought AMC stock for the first time and increased their stake in GameStop.

These are two examples where conventional wisdom doesn’t always make sense (i.e., investing in fundamental tech stocks).

And we can see hedge funds who do follow this ‘conventional wisdom’ are suffering because of it.

Which hedge fund will be next to fall?

Some of you said on Twitter Tiger Global could be the next hedge fund to fall.

Coatue Management has been in deep waters too.

I’m curious to know what you think about where hedge funds are currently headed.

Leave your thoughts in the comment section of the blog below.

Frank Nez is on YouTube – Subscribe for additional content

You can follow me on: Twitter | Facebook | LinkedIn

Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

Tiger Global Hedge Fund Sinks a Massive 34% This Year

Tiger Global Hedge Fund Sings 34%
From left, Chase Coleman III, Scott Shleifer, and John Curtius. Photos by Bloomberg. Art by Mike Sullivan, Edited by Frank Nez

Tiger Global has an AUM of $95 billion, that’s $57 billion more than Citadel’s AUM of approximately $38 billion.

The monster hedge fund is managed by Chase Coleman, 46, who was up until now considered to be a hedge fund legend.

Tiger Global Management had a rough 2021 according to sources and losses are piling up in 2022.

Hedge funds seem to be in a lot of distress recently.

Let’s break it down together.

franknez.com

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 funds face turbulence in 2022

Tiger Global

This year we’ve seen many hedge funds face massive adversity.

Hedge funds have been dealing with significant losses this year, probes from the DOJ, and scrutiny from retail investors.

Hedge fund managers once deemed leaders in their industry now have their reputation on the line.

Gabe Plotkin was named a great trader by Citadel’s Ken Griffin although the hedge fund had to bail Melvin Capital out due to the ‘meme stock’ frenzy.

Citadel pulled $2 billion from Melvin Capital in recent months.

Chase Coleman is in a sticky situation too.

Tiger Global Management is down 34% this year through March.

The speed of the reversal has shocked just about everyone, considering that Coleman is celebrated as one of his generation’s brightest stars, a standout among the elite money managers mentored by the famed Julian Robertson, Bloomberg.

Tiger Global Management treads rocky waters

The bad run has been fueled by massive bets on stocks that have been hammered, such as fast-growing tech companies in the U.S and China.

Tiger Global hedge fund lost 7% last year, its first annual drop since 2016 and its third total, according to Bloomberg.

Tiger Global told clients in a letter that it’s opening up both its hedge and long funds to a limited amount of capital from existing investors to bolster positions in stocks that underperformed

However, we see the results in the first quarter of 2022 has not been what the hedge fund anticipated.

Built by Coleman and his partner Scott Shleifer, Tiger Global has long been seen as a throwback to the industry’s glory years, when double-digit returns were the norm and ‘hotshot managers’ unerringly backed winning companies and shorted the losers.

Across the firm’s $35 billion in funds focused on public companies, this year’s losses have triggered a more than $10 billion hit to investors that include foundations, endowments and pension funds, as well as Tiger Global insiders.

Coleman’s personal wealth has dropped by $1.3 billion, according to calculations by the Bloomberg Billionaires Index. 

Coleman’s hedge fund headed towards worst year

Tiger Global hedge fund may be on track for one of its worst years yet.

Tiger Global Hedge Fund

The blue in this chart indicates the hedge fund’s losses in 2008, 2016, 2021, and 2022.

The firm’s first serious bump was during the 2008 financial crisis, when it lost 26%, followed by a 1% gain the next year.

While markets were already jittery this year due to high inflation and expectations of rate hikes, Russia’s war against Ukraine triggered a flight from risk. 

The Russia-Ukraine conflict has affected every corner of the financial sector.

Earlier we saw Citadel and other hedge funds faced default on Russian bonds from tech company Yandex.

But Tiger Global Management isn’t the only hedge fund struggling.

Investors are pulling out $250 million from Coatue Management and the hedge fund cannot meet its investors demands.

We’re beginning to see this domino effect of losses begin to catch up to even the biggest hedge funds in the world.

franknez.com

I’d love to hear your thoughts on the matter.

Leave a comment in the comment section down below.

You can follow me on: Twitter | Facebook | LinkedIn


© 2022 Franknez.com

Theme by Anders NorenUp ↑

%d bloggers like this: