(Bloomberg) — Tiger Global Management’s performance problems are piling up.
The firm’s hedge fund declined 15% in April, taking its loss in 2022 to 44%, according to people familiar with the matter. Tiger Global’s long-only fund was hit even worse, tumbling 25% last month and extending its drop for the year to 52%, said the people, who asked not to be named because the information isn’t public.
A spokeswoman for Tiger Global, which at year-end managed $100 billion firm-wide, including $35 billion across its hedge, long-only and crossover funds, declined to comment.
“April added to a very disappointing start to 2022 for our public funds,” the firm told investors in a letter seen by Bloomberg. “Markets have not been cooperative given the macroeconomic backdrop, but we do not believe in excuses and so will not offer any.”
Founded in 2001, Tiger Global is heading for its worst year ever. The slump comes as fast-growing tech companies in the U.S. and China — which have driven the firm’s gains — hit a rough patch. In April, the tech-heavy Nasdaq 100 fell 13%, its biggest monthly slump since 2008. The S&P 500 fell 8.8%, its largest April decline since 1970.
Chase Coleman’s firm had long been one of the hedge fund world’s outstanding performers. Through 2020, Tiger Global’s annualized returns at the hedge fund were more than 20%, with just two down years.
That helped make Coleman, 46, and his firm partner Scott Shleifer, two of the wealthiest people in finance.
But last year’s 7% decline has been followed by this year’s losses. Coleman’s wealth has dropped at least $2.2 billion this year due to losses in the funds, reducing his fortune to $8.9 billion, according to the Bloomberg Billionaires Index.
The speed of the declines has sent shockwaves through the hedge fund industry and hammered investors including foundations, endowments and pension funds. It’s also prompted an unusual note of contrition in a separate investor letter last month.
“In this moment, we are humbled, but steady in our conviction and confident about the go-forward opportunity,” the firm wrote after revealing a 34% drop in the first quarter. “We are reassessing and refining our models using all the inputs available to us.”
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