Has Tiger Global been defanged?

Tiger Global Management has lost around $17B since the start of the year, meaning it’s erased almost two-thirds of its lifetime gains, according to LCH Investments. Its decline is almost double that of the Nasdaq Composite.

Why should we care?
Tiger Global has historically brought sizeable returns to its investors; its founder, Chase Coleman, was ranked by LCH as the 14th best-performing hedge-fund manager last year, including a 48% return in 2021. But speculative-asset selloffs as well as rising interest rates have delivered a significant blow to the kinds of high-growth companies that Tiger tends to invest in. “The magnitude of the loss is breathtaking, especially for a fund with ‘hedge’ in its name,” said Andrew Beer, managing member at Dynamic Beta. “This shows how even the most talented and plugged-in tech investors failed to see the train coming down the tracks.” Tiger’s peers have seen declines in the past year as well, though at much more manageable rates. Coatue Management and Viking Global are down 15% and 9% respectively. Tiger’s uniquely dire straits suggest that other VCs will avoid copying Tiger’s strategy, opting for smaller checks and less risky investments. Fintechs should expect smaller investment rounds and greater scrutiny before and during fundraising. VCs may be less interested meteoric rises—and the crashes that seem to follow.