Which hedge funds have been underperforming in 2022?
Hedge fund Tiger Global Management is down -54% for the year despite gaining 1.4% in November according to Bloomberg sources.
Persons familiar with the matter say the firm’s long-only fund rose 5.1% in November.
The hedge fund has been on a steady decline all year.
In April, the firm sunk -34% after a bad run that was fueled by massive bets on stocks that have been hammered, such as fast-growing tech companies in the U.S and China.
Tiger Global lost -7% last year, its first annual drop since 2016 and its third total.
CEO Chase Coleman’s personal wealth dropped by $1.3 billion early this year, according to calculations by the Bloomberg Billionaires Index.
But Tiger Global isn’t the only hedge fund that is underperforming in 2022.
Here are other hedge funds facing significant losses in 2022.
Which hedge funds have been losing money this year?
Tiger Global Management and Whale Rock Capital Management were among stock-picking hedge funds to report significant losses in 2022.
In September, Tiger Global saw losses as high as -66.5%, per Bloomberg.
Whale Rock widened its losses to -41%.
A report conducted in March concluded that almost 80% of active hedge fund managers are underperforming major indexes such as the S&P 500.
Which hedge funds have been underperforming?
Below is a list of other hedge funds underperforming in 2022.
Other hedge funds include:
Melvin Capital closed its doors in June of 2022 after it failed to make up for significant losses after it had bet against GameStop.
Anchorage Capital is another hedge fund that closed after betting against another ‘meme stock’, AMC Entertainment Holdings, Inc.
It closed its doors after 18 years when it could no longer provide their clients with the ability to withdraw their capital.
“Hedge funds are heading for one of their worst years of performance on record, leaving investors frustrated with how many managers have failed to offset sharp falls in equity and bond markets,” says Financial Times.
It’s only a matter of time before we begin to see more hedge funds close their doors leading into 2023.
But I’d love to hear your thoughts.
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