US hedge fund Tiger Global hit by $23.7 billion losses in tech rout: FT

The firm erased around two-thirds of its gains in four months, said Financial Times. PHOTO: REUTERS

BENGALURU (REUTERS) - New York-based Tiger Global has been hit by losses of around US$17 billion (S$23.7 billion) during this year's technology stock sell-off, marking one of the biggest dollar declines for a hedge fund in history, the Financial Times reported on Tuesday (May 10).

The firm, one of the world's biggest hedge funds, has erased around two-thirds of its gains in four months, the newspaper said, citing calculations by LCH Investments.

“The magnitude of the loss is breathtaking, especially for a fund with ‘hedge’ in its name,” Andrew Beer, managing member at investment firm Dynamic Beta, was quoted by FT as saying. “This shows how even the most talented and plugged-in tech investors failed to see the train coming down the tracks.”

The biggest stock hedge funds are delivering some of the worst returns in years with the collapse of technology shares - a sector that created riches over the past decade. Technology and growth stocks have suffered as investors worry that rising interest rates will dent their future earnings.

Tiger Global did not respond to a Reuters request for comment outside business hours.

The firm was founded 21 years ago by Chase Coleman, a so-called “Tiger cub” who worked at legendary investor Julian Robertson’s hedge fund Tiger Management.

Join ST's Telegram channel and get the latest breaking news delivered to you.