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

Chase Coleman's Tiger Global Management suffered enormous losses in May amid a tech-driven sell-off, making the hedge fund's robust 2022 even worse.

The growth-focused flagship fund at Tiger Global tumbled 14.3% in May, bringing its 2022 losses to over 50%, a supply acquainted with the return informed CNBC's David Faber.

"Our recent public fund performance is deeply frustrating. Our business is set up with duration to weather storms when they arise," Tiger Global stated in an investor letter.

In the first quarter, Tiger Global doubled down on plenty of tech holdings, together with Snowflake, Carvana and Sea, earlier than the market decline received uglier, in accordance to a regulatory submitting. Carvana has plummeted 77% in the second quarter to date, whereas Snowflake is down 44% and Sea is off by greater than 30% this quarter.

The tech sector, particularly unprofitable companies and richly valued software program names, has taken a beating currently in the face of rising charges. Those sharp declines in tech have pushed the Nasdaq Composite down greater than 23% 12 months to date and off 26% from its all-time excessive.

Chase Coleman, founding father of Tiger Global Management LLCAmanda L. Gordon | Bloomberg | Getty Images

Coleman is certainly one of the so-called Tiger Cubs, protegees of legendary hedge fund pioneer Julian Robertson. He had managed to produce double-digit annualized returns by 2020 by profiting from the explosive progress in expertise.

Despite the steep losses, Tiger Global is seeing 5 instances extra inflows than the quantity of redemptions requests, in accordance to a supply.

A spokesperson at Tiger Global didn't instantly reply to CNBC's request for remark. Bloomberg News first reported the fund's May efficiency.

This 12 months's brutal sell-off has inflicted enormous ache on some hedge funds. Melvin Capital Management, the hedge fund burned by the GameStop mania, stated final month it can unwind its funds and return money to traders as losses accelerated.

— CNBC's Deirdre Bosa contributed reporting.

based mostly on web site supplies www.cnbc.com

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