Chase Coleman’s Tiger Global Administration suffered enormous losses in May amid a tech-driven sell-off, making the hedge fund’s powerful 2022 even worse.
The expansion-focused flagship fund at Tiger Global tumbled 14.3% in May, bringing its 2022 losses to over 50%, a supply conversant in the return instructed CNBC’s David Faber.
In the first quarter, Tiger Global doubled down on quite a few tech holdings, together with Snowflake, Carvana and Sea, earlier than the market decline bought uglier, in accordance to a regulatory submitting. Carvana has plummeted 77% in the second quarter to date, whereas Snowflake is down 44% and Sea is off by greater than 30% this quarter.
The tech sector, particularly unprofitable companies and richly valued software program names, has taken a beating currently in the face of rising charges. These sharp declines in tech have pushed the Nasdaq Composite down greater than 23% yr to date and off 26% from its all-time excessive.
Coleman is one among the so-called Tiger Cubs, protegees of legendary hedge fund pioneer Julian Robertson. He had managed to produce double-digit annualized returns by means of 2020 by profiting from the explosive development in know-how.
A spokesperson at Tiger Global did not instantly reply to CNBC’s request for remark. Bloomberg Information first reported the fund’s May efficiency.
This yr’s brutal sell-off has inflicted enormous ache on some hedge funds. Melvin Capital Administration, the hedge fund burned by the GameStop mania, stated final month it would unwind its funds and return money to buyers as losses accelerated.