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.
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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.
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.
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.
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.
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About The Author
I thought Hedgefunds shorted stocks also. They would have made big bank on all of those holdings if they shorted them. Just my opinion. I don’t short stocks.
Let’s start a discussion! Leave your thoughts below.