Tiger Global Down 52% — Losses Over $18 Billion

Note: This is not financial advice.

Hedge fund giant Tiger Global Management has lost the majority of its capital in 2022. From a new Bloomberg report:


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Tiger Global Management and Whale Rock Capital Management were among stock-picking hedge funds to report September losses as equity markets tumbled.  

Chase Coleman’s Tiger Global fell 4.4% for the month, extending its decline for the year to 52%, according to people familiar with the matter who asked not to be identified discussing the results. The New York based firm’s long-only fund tumbled 9.6% in September to bring its year-to-date slide to 66.5%.

Tiger managed about $35 billion at the beginning of the year, putting its losses at over $18 billion.

Those losses could be far larger when Tiger’s startup investments are taken into account. Those bets on opaque private companies are hard to value.

What we do know is that tech startup valuations are down. This is especially true for the late stage companies Tiger favors, which closely track the public markets.

With losses like this, a brutal math sets in.

Tiger must more than double its capital just to get back where it was at the beginning of the year. Worse yet, it’s long-only fund has to triple!

That’s incredibly hard to do.

But until Tiger wins back its losses, it won’t be able to charge performance fees. These juicy 20% fees are the lifeblood of hedge funds.

Without those fees, bonuses will be slim to nonexistent.

The top performers will leave for greener pastures. Those that stay are likely to be demoralized.

I suspect Tiger will close the long-only fund, and perhaps the entire business. After all, starting fresh is an opportunity to earn juicy fees again.

Tiger’s abysmal performance trails many index funds with much lower fees.

I own Vanguard 500 Index Fund Admiral Shares, which are down just 23% this year. They have an expense ratio of 0.04% and no performance fee.

Tiger’s investors would do well to ditch the expensive and poorly performing fund and give Vanguard a call.

Do you think Tiger will survive? Leave a comment at the bottom and let me know!

More on markets:

Hedge Fund Giant Tiger Loses Over $18 Billion — Long Fund Down 64%

New Report: Millions of Fails to Deliver in AMC and APE Shares

Q3 Venture Funding Slows to a Crawl

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Photo: Tiger Global CEO Chase Coleman

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