Chase Coleman’s Tiger Global Management suffered huge losses in May amid a tech-driven selloff, adding to a tough 2022 for the hedge fund.
Tiger Global’s flagship growth-focused fund plunged 14.3% in May, taking its losses to over 50% in 2022, a source familiar with the yield said CNBC’s David Faber.
“Our recent public fund performance is deeply frustrating. Our business is built to last, to weather storms when they hit,” Tiger Global said in a letter to investors.
Tiger Global doubled in a number of tech holdings including Snowflake, Carvana and Sea in the first quarter before the market decline got uglier, according to a regulatory filing. Carvana is down 77% so far in the second quarter, while Snowflake is down 44% this quarter and Sea is down more than 30%.
The technology sector, particularly unprofitable companies and highly valued software names, has taken a hit lately as interest rates rise. Those sharp declines in the tech space have dragged the Nasdaq Composite down more than 23% year-to-date and 26% from its all-time high.
Chase Coleman, Founder of Tiger Global Management LLC
Amanda L Gordon | Bloomberg | Getty Images
Coleman is one of the so-called Tiger Cubs, protégés of legendary hedge fund pioneer Julian Robertson. He had managed to generate double-digit annual returns through 2020 by capitalizing on the technology’s explosive growth.
Despite the steep losses, Tiger Global is seeing five times more inflows than the number of redemption requests, according to a source.
A spokesman for Tiger Global did not immediately respond to CNBC’s request for comment. Bloomberg News first reported on the fund’s performance in May.
This year’s brutal sell-off has caused some hedge funds great pain. Melvin Capital Management, the hedge fund burned by GameStop mania, said last month it would liquidate its funds and return cash to investors if losses accelerate.
— CNBC’s Deirdre Bosa contributed to the coverage.