(Bloomberg) — Tiger Global Management was already off to a “very disappointing” first quarter, when it cut some of the biggest tech losers of 2022 from its portfolio and added others.
But things went from bad to worse for Chase Coleman’s firm. It added to its stake in beleaguered online used-vehicle dealer Carvana Co., which has lost more than two-thirds of its value since the end of the quarter. It exited 83 stocks, including Netflix Inc. and Adobe Inc., while paring its holding of pandemic darling DoorDash Inc., according to a filing Monday. Meanwhile, it added just two new positions. One of them, digital banking-services provider Dave Inc., has plunged 64% since March 31.
That helped fuel a 15% April decline for Tiger Global’s flagship hedge fund, extending its loss for the year to 44%.
Coleman, 46, is among several so-called Tiger Cubs — named for money managers who previously worked at Julian Robertson’s Tiger Management — that have struggled this year as surging inflation, rising interest rates and war in Europe have crushed equity markets. The tech-heavy Nasdaq 100 tumbled 13% in April, its biggest monthly decline since 2008, while the broader S&P 500 fell 8.8%, the most in more than half a century.
Read more: Tiger Global Loss This Year Hits $16 Billion After April Tumble
Steve Mandel’s Lone Pine Capital also reduced its stake in DoorDash, which tumbled 20% in the first quarter, and trimmed Shopify Inc., another erstwhile favorite of the Covid-19 era that lost more than half of its value in the period. And while Tiger Global unloaded a chunk of its stake in DocuSign Inc., fellow cub Philippe Laffont at Coatue Management started a new stake, snapping up 1.5 million shares. The stock has plunged 30% so far this quarter.
Rounding out the group are Lee Ainslie’s Maverick Capital, which also added to its position in Carvana, and Andreas Halvorsen’s Viking Global Investors, which threw in the towel on Peloton Inc., the exercise-equipment maker that dropped 26% in the first quarter and an additional 41% since.
Monday was the deadline for the Tiger Cubs and thousands of other institutional investors, including pension funds and endowments, to report certain US equity holdings to the Securities and Exchange Commission through quarterly 13F filings.
For TOPLive blog coverage of 13F disclosures, click here
Other highlights:
- Stanley Druckenmiller’s Duquesne Family Office added to its already substantial position in Chevron Corp., while exiting Carvana and Google parent Alphabet Inc.
- Dan Sundheim’s D1 Capital, whose firm is typically lumped together with the Tiger Cubs because it was spun off from one, also sold out of Carvana, Shopify and JD.com, along with 18 other stocks it liquidated during the first quarter
- Gabe Plotkin’s Melvin Capital Management, which was down 23% through the first four months of the year, ditched 16 holdings, including DoorDash and Facebook parent Meta Platforms Inc., while adding to its stakes in Microsoft Corp. and Amazon.com Inc. It took new positions in Spotify, Visa Inc. and MGM Resorts International
- Warren Buffett’s Berkshire Hathaway Inc. added a few new stakes, including $2.9 billion worth of Citigroup Inc., while liquidating the rest of its shares of Wells Fargo & Co.
- Viking took a new stake in Mastercard Inc., snapping up 1.79 million shares valued at $641 million as of March 31. The stock was little changed in the first quarter and is down 7.7% since.
(Updates with Viking’s new Mastercard position in final bullet point)
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