This year can be described as a “crazy start” for the “little tigers” who love technology stocks.
Well-known hedge fund managers Lee Ainslie and Steve Mandel’s hedge funds have fallen by about a third this year, joining other “little tigers” hit by the sharp fall in technology stocks. “(Tiger Cubs) can be described as “sympathy for each other”.
Under the leadership of Julian Robertson, the legendary fund manager and founder of Tiger Management, these “little tigers” each founded their own hedge fund companies and eventually became world-renowned hedge fund managers. The bull market in tech stocks is a bright spot.
The “little tigers” who love technology stocks have suffered heavy losses
However, as the U.S. inflation rate continued to be high, the Fed’s sharp interest rate hike cycle kicked off, market risk appetite plummeted, and technology stocks bore the brunt of the massive sell-off. This year can be described as a “crazy start” for the “little tigers” who love technology stocks. The benchmark index of technology stocks, the Nasdaq 100 index, has fallen by more than 24% this year, and the S&P 500 index has fallen by more than 15% this year. .
Zhitong Finance APP has learned that, according to people familiar with the matter, as of May, the investment income of Maverick Capital, Ainsley’s main hedge fund, fell by 32.5%. The company’s biggest investments in the first quarter included purchases of South Korean e-commerce giant Coupang (CPNG.US) and U.S. e-commerce giant Amazon (AMZN.US). If the hedge fund had continued to hold both stocks last month, both investments would have been among the biggest losers, analysts said.
Lone Pine, the hedge fund owned by Mandel, fell about 30% during the period. Two of the company’s first-quarter holdings, Workday (WDAY.US) and Shopify (SHOP.US), were among the worst losers in the portfolio, down 43% and 43%, respectively, as of May 31. A staggering 73%. However, Mandel, 66, who stepped down from the hedge fund’s running management in 2019, remains involved in investment research and serves on the management committee.
With the frequent slumps of U.S. stocks and technology stocks this year, these hedge funds have evaporated their multi-billion-dollar investor capital, so they have a lot to do with Julian Robertson, the founder of Tiger Management. For one star fund manager, this year has been a “tech disaster”.
The most beautiful Tiger Globe fell the hardest
Chase Coleman is arguably one of Robertson’s most successful protégés, yet Tiger Global Management, the world-renowned hedge fund he founded, has seen its investment performance plummet 52% so far this year. This loss also means that the 48% investment income obtained by Tiger Global Fund in 2020 has been completely erased.
It is reported that as of April this year, Tiger Global, which has hit technology stocks hard, suffered a huge loss of about US$17 billion in this year’s technology stock sell-off, which is one of the largest losses in the history of the hedge fund.
Viking Global Investors, founded by Andreas Halvorsen, another of Julian Robertson’s favorite protégés, managed to avoid the tragic tech carnage by optimizing its portfolio, and he manages a hedge fund in As of May, investment income fell only about 9%, far better than other “little tigers”.
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