Tiger Global drops 14% in May during tech sell-off, pushing hedge fund’s 2022 losses to over 50%

Chase Coleman’s Tiger Global Management suffered huge losses in May due to a technology-driven sell-off, further worsening the hedge fund’s tough 2022.

Tiger Global’s flagship growth-focused fund plummeted 14.3% in May, bringing 2022 losses to more than 50%, a source who knows the yield told CNBC. David Faber.

“Our recent public funds performance is deeply frustrating. Our business is set up with a duration to withstand storms when they arise,” Tiger Global said in a letter to investors.

In the first quarter, Tiger Global doubled on a number of tech holdingsIncluded snowflakes, Carvana Other Sea, before the market decline got uglier, according to a regulatory filing. So far Carvana has plummeted 77% in the second quarter, while Snowflake is down 44% and Sea is down more than 30% this quarter.

The technology sector, especially unprofitable companies and highly regarded software names, has taken a hit in the face of rising rates. Those steep drops in technology have pushed the Nasdaq composite down by more than 23% from the start of the year and 26% from its all-time high.

Chase Coleman, founder of Tiger Global Management LLC

Amanda L. Gordon | Bloomberg | Getty Images

Coleman is one of the so-called Tiger Cubs, protected by the legendary hedge fund pioneer Julian Robertson. He had managed to produce double-digit annualized returns through 2020 by leveraging the explosive growth of technology.

Despite the heavy losses, Tiger Global is seeing inflows five times higher than the amount of ransom demands, according to a source.

A Tiger Global spokesperson did not immediately respond to CNBC’s request for comment. Bloomberg News first reported the fund’s May performance.

This year’s brutal sell-off has inflicted enormous pain on some hedge funds. Melvin Capital Management, the hedge fund burned by the GameStop craze, it said last month it will dissolve its funds and return money to investors with accelerating losses.

– CNBC Deirdre Bosa contributed reportage.