Tiger Global slashes shareholdings on tech groups
The value of hedge fund’s public shareholdings declined by almost $20bn during first quarter of 2022.
The total value of Tiger Global’s public stock positions fell from $46bn at the end of last year to just over $26bn at the end of the first quarter, according to regulatory filings released on Monday.
The decline in value reflected lower stock market valuations as well as share sales.
Tiger Global called its results ‘very disappointing’ in a letter to investors, adding that ‘markets have not been co-operative given the macroeconomic backdrop’.
Tiger Global, slashed its shareholdings in companies such as Netflix and Rivian as it suffered significant losses during this year’s stock market rout.
In a significant retreat for the New York-based firm, Tiger Global sold its entire stake in several well-known consumer tech companies, including dating app Bumble, vacation rental company Airbnb, and Didi, the Chinese ride-hailing group.
It also sold 80 per cent of its stake in trading app Robinhood by and significantly reduced its exposure to Peloton.
Tech stocks have plummeted this year as investors struggle with higher inflation and interest rates. They have also grown wary of companies that prospered during the coronavirus pandemic but have now fallen out of favour.
The dramatic pullback is the latest evidence of a volatile start to the year for the hedge fund and its founder, Chase Coleman.
Coleman had previously created a reputation as one of the world’s most prominent growth investors after setting the firm at the start of the century.
In a letter to investors this month, Loeb said the fund had “adopted a significantly more defensive posture” beginning in the first quarter because of “concerns about valuations in the current interest rate environment, geopolitical uncertainty, and emerging weakness in important global economies”.
Varenne Capital boosts operational capacity with new hires
Varenne Capital Partners (Varenne Capital), a Paris-based investment firm managing $3.9 billion at the end of the first quarter 2022, has made several new additions to its team.
Varenne Capital appointed a Chief Technology Officer in February 2021 and has since expanded the IT team to five professionals.
The fund has also hired a Chief Compliance Officer, a Risk Manager, a Middle Office/Operations Officer, and three business development professionals, bringing Varenne’s overall team to 39, representing eight nationalities.
Séverin Plossard, Chief Technology Officer, brings 17 years of experience in IT development and finance. Prior to Varenne, he worked for over a decade at Exane Asset Management where he was in charge of information systems.
Anthony Pourreau, Middle Officer/Operations, started his career as an assistant portfolio manager at BNP Wealth Management in Geneva. He then gained experience as a performance analyst at BNP Securities Services and then as a middle officer at Lyxor Asset Management.
Quentin Richard, Business Development Officer, has responsibility for developing partner relationships. Quentin began his career as an analyst dedicated to UHNW clients at UBS Bank in France.
Bridgewater Associates 'swaps' Tesla for Chinese EV companies
Bridgewater Associates, the hedge fund run by billionaire Ray Dalio, has doubled its holdings in Chinese electric vehicle (EV) companies Li Auto and Xpeng.
The fund has also significantly raised its exposure to Nio haven completely exited its position in Tesla in the first quarter of the year, according to a report by Benzinga.
The report credits regulatory filings for the information that Bridgewater has sold all of the 25,488 shares it held in the Elon Musk's Tesla in the three months to 31 March.
Tesla's share price traded between $766.40 and $1,199.80 during that period.