Tiger Global Lost 7% Last Year, First Annual Drop Since 2016

(Bloomberg) - Tiger Global Management’s hedge fund tumbled 7% last year, its first annual loss since 2016, according to people familiar with the matter.

The fund struggled in the final two months, dropping 8% and 10.7% in November and December, respectively, the people said. That erased a 13% gain that it had built through the first 10 months of the year.

A spokeswoman for Chase Coleman’s $100 billion firm declined to comment.

It’s just the third annual loss in the hedge fund’s two-decade history. It declined 15% in 2016 and 26% in 2008.

Tiger Global’s long-only fund declined 4.2% last year, one of the people said. The firm manages $35 billion across its hedge and long-only funds, while the rest of the assets are in its venture-capital unit.

Last month, Tiger Global told clients in a letter that it’s opening up both funds to a limited amount of capital from existing investors to bolster positions in stocks that underperformed. The funds started accepting fresh cash at the beginning of January after being closed to new money for years.

“We are excited by the opportunities we see today and intend to continue playing offense,” the firm said in the letter.

One of the stocks that probably hurt results is Beijing-based retail giant JD.com Inc., which tumbled 20% last year amid a regulatory crackdown in China. The stock was Tiger Global’s second-biggest U.S. equity position as of Sept. 30. Another top holding, DocuSign Inc., plunged 31%. Last month, the e-signature company provided a revenue forecast that missed Wall Street estimates, stoking concerns that growth will slow after a pandemic-fueled surge in demand.

By Hema Parmar


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