Tiger Global’s Top Hedge Fund Jumped 14% in 2018

(Bloomberg) -- Tiger Global Management gained almost 14 percent last year in its flagship hedge fund, placing it among a handful of standout performers in a rough year for the industry.

Chase Coleman’s long-short hedge fund, which manages $8.5 billion, rose 0.9 percent in December, according to a person familiar with the matter. Performance was driven by investments in cloud infrastructure and software-as-a-service companies including Amazon.com Inc., Microsoft Corp. and Salesforce.com Inc., said the person. It also won on its bet on Netflix Inc.

Equity hedge funds on average lost about 6 percent in 2018 on an asset-weighted basis, according to Hedge Fund Research Inc. The industry overall suffered its biggest annual loss since 2011. By comparison, the S&P 500 Index was down 4.4 percent, including dividends reinvested, marking the worst year since the financial crisis.

The Tiger Global fund also gained from its short wagers. As of the end of the third quarter, the fund’s exposure was 56.4 percent short and 133 percent long.

The 2018 performance marks the second year of strong returns for the flagship fund. In 2017, it surged 28 percent. A spokeswoman for the New York-based firm, which has $23 billion in assets in public and private equities, declined to comment.

Coleman founded Tiger Global in 2001. He’s one of the more successful Tiger Cubs, a term coined for alumni of Julian Robertson’s hedge fund Tiger Management, where Coleman was a technology analyst.

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