Tiger Global Management’s hedge fund gained 7.3% in the first quarter as a rally in technology stocks helped the firm recover from last year’s record losses.
The fund rose 5.2% in March for its third straight positive month this year, according to a person familiar with the matter. Four of the firm’s biggest stocks jumped at least 20% during the first three months at the end of December, led by a 76% gain for Meta Platforms Inc. The tech-heavy Nasdaq Composite Index soared 17%.
A spokeswoman for New York-based Tiger Global declined to comment.
Chase Coleman’s firm is calling for a year of decline in 2021 and a rebound from another year in 2022, when the hedge fund fell 56% and the long-only fund fell 67%. To recoup the lost client money over that period, the fund would need to gain at least 144% and 216%, respectively.
Tech stocks have become interesting again after being “in their own version of a recession for about a year,” Coleman said at a luncheon Tuesday, when he recommended buying so-called FAANGs, which are stocks of some of the sector’s biggest names. There is an acquaintance for
Tiger Global has made comebacks before. After plunging 26% in 2008, the hedge fund recouped losses by 2011, and after plunging 15% in 2016, made that money back the following year. Yet, the decline in any of them is much less than in the previous year. The firm started 2023 with about $51 billion in revenue, ending 2021 at about $100 billion.
Tiger Global’s longs-only fund returned 5.2% in March, extending this year’s gains to 9.8%, the person said.
The firm overhauled the hedge fund last year, slashed equity holdings in the first quarter and reduced stakes in Chinese firms. It also reduced private investment in its venture funds by about a third.
catch all corporate news And updates on Live Mint. download mint news app to receive daily market update & Live business News,