Hedge Fund Tiger Cubs
Hedge fund tiger cubs have become popular lately, thanks to their unique appearances and dazzling personalities. They have been featured on television and in movies. Their names include Tiger Legatus, Maverick, Hwang Hwang, and Citrone.
The Tiger Legatus hedge fund closed after more than a decade of trading. In the past, it had been seeded by one of the most famous names in the hedge fund industry, Julian Robertson. According to a recent report by the Financial Times, the fund was not performing up to its potential. But that does not mean that the fund is going under, and the company has plans to relaunch the fund in the near future.
Tiger Legatus was an offshoot of its parent company, Tiger Global. The fund’s portfolio is a mix of long and short stocks in a variety of industries. Its biggest holding is in the ridesharing sector, namely, DiDi. Before the company’s IPO, Tiger was the largest owner of DiDi, acquiring more than half of the company’s shares.
For a fund with a $200 million in assets under management, the company’s stock was not exactly a winner. The fund was down a tad in the first quarter, but it’s performance in 2018 has been better than many of its peers. Some investors have been disappointed that the fund has not kept up with the rest of the equity market, though.
Jesse Ro, the company’s founder and chief executive officer, had a solid resume. He started out at the likes of Bear Stearns & Co. and Viking Global Investors before founding his own hedge fund in 2009. A BS in Economics and a MBA are on the resume.
The hedge fund Viking Global Investors is one of the few Tiger Cubs to have made a single digit loss through the first four months of the year. However, the firm did better in the second half of the year, resulting in a 19 percent gain for the end of 2009.
The company’s main fund returned 12% in 2017, while its shorter-term hedge fund lost 4%. As of September 30, 2021, the fund had $48 billion in assets. It has offices in Greenwich, Connecticut, and London.
In the third quarter, the firm’s top new bets included Vtex, Farfetch and Nuvalent. The firm also bought a stake in Ginkgo Bioworks, which is a DNA printing and designing firm. When the firm filed its fourth quarter report with the SEC, the company reported 28 new stocks.
Coatue Management, the other Tiger Cub fund managed by Philippe Laffont, was down 17% for the year. The hedge fund lost 6% in the third quarter and posted a 15% decline in the first quarter.
Tiger Cubs are the former proteges of Julian Robertson, the legendary investor who founded Tiger Management. He mentored dozens of his proteges during his 50-year career. Several of these eminent investors began their own hedge funds.
Andreas Halvorsen, the founder and manager of Viking Global, was a former Tiger Cub at the investment firm. He received an MBA from the Stanford Graduate School of Business and served as a platoon commander in the Norwegian SEAL Team. His military background helped build credibility with major investors.
Tiger Cubs are a group of hedge fund investors that have grown up under the mentorship of legendary investor Julian Robertson. These firms have garnered billions of dollars for their investors over the years.
Tiger Management was founded in 1980 by Robertson. It gained a reputation as one of the most successful funds in the world. Several of its proteges have gone on to establish their own funds.
Tiger Management, as it was known, grew to oversee $22 billion by the late 1990s. It was the largest hedge fund in the world. But by the start of this year, the firm had burned up $16 billion of investor capital.
Julian Robertson is a billionaire investor and former Kidder Peabody & Co. executive. He founded the firm with $8 million. Since then, dozens of his proteges have gone on to create their own funds.
According to Forbes, Robertson was named one of the 100 most influential business minds in 2017. His company had a unique strategy that included long and short positions and a focus on in-depth research into the fundamentals of a company.
As the dot-com bubble burst, Robertson decided not to invest in the new companies. However, he was still able to provide funding for a number of new hedge funds. Robertson’s hedge fund Tiger Management was the world’s largest at the time. In its prime, it earned an average annual return of 32 percent.
Bill Hwang was a savvy investor who had the ability to make risky bets. He was able to leverage his positions in order to earn huge profits. During the last nine years, his stock picks were extremely accurate.
The hedge fund he built, Tiger Asia Management, was one of the largest Asianfocused funds in the U.S. at its peak, managing more than $5 billion in assets. He was a protÃ©gÃ© of legendary trader Julian Robertson. In 2000, Robertson recruited Hwang to join his venture. Robertson’s Tiger Management was a pioneering force in the hedge fund industry. But, Robertson broke up the team when the Nasdaq bubble burst in early 2000.
Robertson gave Hwang $25 million to launch his own fund. At the time, Hwang was considered the “Tiger cub.” He grew his fund to more than $5 billion. A few years later, his portfolio had a return of 16 percent annually. However, it suffered heavy losses during the 2008 financial crisis.
When the firm closed, Hwang had a personal fortune of close to $20 billion. However, in the last two days, his portfolio fell apart. According to regulators, Hwang allegedly violated securities laws. Specifically, Hwang was accused of insider trading on Chinese bank stocks. Using confidential information, Hwang allegedly shorted three of these stocks.
The Securities and Exchange Commission (SEC) filed charges against Hwang in July 2012. They claimed that he traded in the final 30 minutes of the day to maximize impact.