Tiger Global drops 14% in May in tech sell-off, pushes hedge fund’s 2022 loss to more than 50%
Chase Coleman’s global management firm Tiger suffered massive losses in May amid a tech-driven sell-off that made the hedge fund’s tough 2022 even worse.
The growth-focused flagship fund at Tiger Global fell 14.3% in May, bringing its 2022 loss to more than 50%, a source familiar with the returns told CNBC’s David Faber.
In the first quarter, Tiger Global double for some tech holdingsconsists of Snowflakes, Carvana and Sea, before the market slump worsened, according to a regulatory filing. So far, Carvana has plummeted 77% in the second quarter, while Snowflake is down 44% and Sea is down more than 30% this quarter.
The tech sector, especially unprofitable companies and high-value software names, has been failing at the pace of growth lately. That dramatic decline in technology has fueled Nasdaq Composite down more than 23% year-to-date and down 26% from an all-time high.
Chase Coleman, Founder of Tiger Global Management LLC
Amanda L. Gordon | Bloomberg | beautiful pictures
Coleman is one of the so-called Tiger Cubs, the patron of legendary hedge fund pioneer Julian Robertson. He has managed to generate double-digit annual returns through 2020 by taking advantage of the explosive growth of technology.
A spokesperson for Tiger Global did not immediately respond to CNBC’s request for comment. Bloomberg News first reported the fund’s May performance.
This year’s brutal sell-off has caused great pain for some hedge funds. Melvin Capital Management, the hedge fund burned by the GameStop mania, said last month they will withdraw their funds and return cash to investors when losses mount rapidly.
