Tiger Global Hedge Fund: Strategies For Investment Access

Tiger Global Management, LLC (often referred to as Tiger Global) is an American investment firm founded by Chase Coleman III in March 2001. It functions as a hedge fund and private equity firm, deploying capital globally in both public and private markets. The firm focuses on internet, software, consumer, and financial technology companies. In 2023, Tiger Global's hedge fund arm snapped a two-year losing streak with a 28.5% gain, topping peers such as Viking Global Investors and Coatue Management. However, in 2022, the firm experienced significant losses, with its hedge fund and long-only fund declining by 52% and 62% respectively since the beginning of the year. With its roots in Tiger Management, Tiger Global has a strong track record and has earned superior returns for its investors. In this paragraph, we will explore the topic of how to invest in the Tiger Global hedge fund and understand the opportunities and considerations for potential investors.

Tiger Global Management's history

Tiger Global Management, LLC (formerly Tiger Technology) is an American investment firm founded by Chase Coleman III, a former Tiger Management employee, in March 2001. Coleman was a protégé of Julian Robertson and worked as a technology analyst for Tiger Management from 1997 to 2000. When Robertson closed Tiger Management in 2000, he entrusted Coleman with over $25 million to manage, making him one of the so-called "Tiger Cubs", fund managers who started their careers with Tiger Management.

In 2001, Coleman established Tiger Technology, later renamed Tiger Global Management, as a hedge fund to invest in the public equity market. In 2003, Scott Shleifer helped the firm expand into investing in the private equity market. From 2007 to 2017, Tiger Global raised the highest amount of capital among venture capital firms, according to the Preqin Venture Report.

Tiger Global Management focuses on investing in internet, software, consumer, and financial technology companies. The firm seeks to earn superior risk-adjusted returns for its investors over the long term. Its investments primarily target the global internet, technology, telecom, media consumer, and industrial sectors.

In 2020, Tiger Global earned its investors $10.4 billion, more than any other hedge fund on the annual list of the top 20 managers compiled by LCH Investments. The following year, in 2021, the firm reported $86 billion in assets, making it the largest of the descendants of Julian Robertson Jr.'s hedge fund firm. However, in 2022, the firm experienced significant losses, with its hedge fund and long-only fund declining 52% and 62% in value, respectively, since the beginning of the year. Despite these setbacks, Tiger Global remains a prominent player in the investment world, known for its aggressive investment strategy and focus on technology and internet-related companies.

Tiger Global's investment strategy

Tiger Global Management, LLC (often referred to as Tiger Global) is an American investment firm founded by Chase Coleman III in March 2001. The firm acts as both a hedge fund and a venture capital business, which it calls private equity. Tiger Global's strategy can be summarised as follows:

• Be aggressive in pre-empting good tech businesses
• Move quickly through diligence and term sheet issuance
• Pay high prices relative to historical norms and/or competitors
• Take a hands-off, lightweight approach to company involvement post-investment

Tiger Global's strategy is to invest as much capital as the fund can physically manage, with a minimum internal rate of return of 18%. This has led to the firm speeding up deals and increasing their number, rather than following the traditional deployment schedules that most funds adhere to.

The firm focuses on investing in high-growth technology companies from a variety of sectors, including internet, software, consumer, and financial technology. It has a particular interest in the U.S., China, and India as its core markets.

Tiger Global's private equity strategy is led by Scott Shleifer, who joined the firm in 2002. The firm's first fund to invest in private companies was created in 2003, raising $75.8 million. Some of its early investments in U.S. companies include Facebook and LinkedIn in 2009.

Tiger Global's aggressive investment pace and approach have turned it into the biggest investor in unicorn startups, with 126 such private companies in its portfolio as of 2021. The firm's net IRR for its private equity business is an impressive 26% over the life of these funds.

Tiger Global's performance in 2023

Tiger Global Management, LLC, commonly referred to as Tiger Global, is an American investment firm founded by Chase Coleman III in 2001. The firm focuses on investing in internet, software, consumer, and financial technology companies.

In 2023, Tiger Global snapped a two-year losing streak, with its hedge fund gaining an impressive 28.5%, outperforming peers such as Viking Global Investors and Coatue Management. This strong performance was driven by a rally in stocks in the fourth quarter, which resulted in a 26% return for the S&P 500, making long-short equity the best-performing hedge fund strategy.

Tiger Global's long-short fund gained 28.5% in 2023, a significant recovery from losses of 56% in 2022 and 7% in 2021. Additionally, the firm's long-only fund rose 20.4% in 2023, a rebound from a steep drop of 67% in 2022.

Despite these impressive gains, Tiger Global's total assets under management declined year-over-year. The firm reported $46 billion in assets at the end of 2023, down from $51 billion the previous year and $86 billion at the end of 2021. This decline is attributed to redemptions and the funds remaining closed to new investors.

Tiger Global's performance in 2022

Tiger Global Management, LLC, is an American investment firm founded by Chase Coleman III in 2001. It is one of the many "Tiger Cubs" – investment firms started by former employees of Julian Robertson's Tiger Management.

In March 2022, Tiger Global raised $12.7 billion for a new fund to back fast-growing technology companies in their early stages. However, 2022 saw the beginning of one of the biggest tech sell-offs in history, and by June of that year, the firm's hedge fund and its long-only fund had declined by 52% and 62% in value, respectively, since the start of the year. This amounted to a loss of $17 billion in May alone, one of the biggest dollar declines in hedge fund history.

The Wall Street Journal and Financial Times reported that these losses eliminated around two-thirds of the value accrued by the hedge fund and the long-only fund over their lifetimes, while New York cited research indicating that the losses could account for three-fourths of lifetime gains. The hedge fund's loss was described by the Wall Street Journal as "one of the largest ever", and an anonymous hedge fund manager quoted by New York called it "the biggest in the history of hedge funds".

In June 2022, Tiger Global's venture capital losses were reported to be less severe, standing at around 9%. However, by the end of the year, the long-short fund had lost 56% and the long-only fund had dropped 67%.

Tiger Global's portfolio structure

Tiger Global Management, LLC (often referred to as Tiger Global) is an American investment firm founded by Chase Coleman III, a former Tiger Management employee, in March 2001. The firm focuses primarily on internet, software, consumer, and financial technology companies.

Tiger Global has two investment strategies that manage roughly equal amounts of capital: public equity and private equity. The public equity business uses equity strategies to invest in publicly traded companies, including Tiger Global Investments (its flagship long-short fund) and Tiger Global Long Opportunities (long-only). The private equity strategy is led by Scott Shleifer, who joined the firm in 2003 to help expand its private equity investments.

Tiger Global's private equity funds include Tiger Global Private Investment Partners I to XV, with the most recent fund, XV, raising $12.7 billion in March 2022 to back early-stage, fast-growing technology companies. The firm has reported 900 investors involved in this latest fund.

Tiger Global's notable venture capital investments include the Indian e-commerce company Flipkart. The firm has a history of being one of the most active global tech investors, with significant gains in 2020, earning its investors $10.4 billion. However, in 2022, the firm experienced significant losses, with its hedge fund and long-only fund declining by 52% and 62% respectively since the start of the year.

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