2022 has been a disastrous year for Chase Coleman’s Tiger Global, as the multibillion dollar fund is down 52% year-to-date. During May, the hedge fund lost 14.2%, as both public and private assets suffered losses and markdowns from declining market conditions. In fact, the losses were so severe that the fund had to cut its management fees by half a percent to 1% until December of next year. Meanwhile, clients are now allowed to redeem as much as 33% of their investments this year, up from the standard limit of 25%. The redemption changes are temporary and will be normalized “as soon as it is prudent to do so.”
“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,” Tiger Global told its investors. “Our team remains maximally motivated to earn back recent losses.”
Tiger Global operates as a long-term oriented fund with over $26 billion in managed 13F securities. The fund has an average holding period of about eight quarters for stocks in its portfolio.
With that in mind, let’s take a look at what Chase Coleman and company are betting on.
What Is Tiger Global Betting On?
Tiger Global seems to be taking a cautious stance. During the fourth quarter of 2021, the firm had $45.93 billion in 13F assets under management (AUM). Now, that figure has been almost cut in half to $26.64 billion as of the first quarter 2022.
JD (NASDAQ:JD) remains Tiger Global’s largest position; the fund owns 48.77 million shares that account for 10.59% of its portfolio. However, the Chinese e-commerce company has experienced its fair share of tailwinds in recent months. The company is currently on the U.S.’s Holding Foreign Companies Accountable Act (HFCAA) list. If companies on the list are unable to submit audited filings to U.S. officials, they may be at risk of being delisted. Accordingly, Tiger Global sold 4.95 million shares of JD during Q1, reducing its position by 9%.
While the hedge fund reduced its assets under management (AUM) during the quarter, it still made several interesting buys. Snowflake (NYSE:SNOW) is the fund’s sixth largest position, and it purchased an additional 821,100 shares. Tiger Global also purchased 238,765 shares of ServiceNow (NYSE:NOW), its seventh largest position. In eighth place comes Carvana (NYSE:CVNA). The fund added an additional 1.26 million CVNA shares during the quarter.
Meanwhile, Tiger Global completely sold out of several positions. These include Netflix (NASDAQ:NFLX), Adobe (NASDAQ:ADBE), and Sunrun (NASDAQ:RUN).
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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