Newsbytes
  • India
  • Business
  • World
  • Politics
  • Sports
  • Technology
  • Entertainment
  • Auto
  • Lifestyle
  • Inspirational
  • Career
  • Bengaluru
  • Delhi
  • Mumbai
  • Videos
  • Visual Stories
  • Reviews
  • Phone Reviews
  • Fitness Bands Reviews
  • Speakers Reviews
  • Find Cricket Statistics
Hindi
More
In the news
Twitter
Snapchat
OPPO
Anand Mahindra
Mahindra Group
Bharat Biotech
Stock Market
Newsbytes
Hindi
Newsbytes
User Placeholder

Hi,

Logout


India
Business
World
Politics
Sports
Technology
Entertainment
Auto
Lifestyle
Inspirational
Career
Bengaluru
Delhi
Mumbai
Videos
Visual Stories
Reviews
Phone Reviews
Fitness Bands Reviews
Speakers Reviews
Find Cricket Statistics

More Links
  • Videos

Download Android App

Follow us on
  • Facebook
  • Twitter
  • Linkedin
  • Youtube
 
Home / News / Business News / How Tiger Global lost $17 billion in tech investments
Business

How Tiger Global lost $17 billion in tech investments

How Tiger Global lost $17 billion in tech investments
Written by Athik Saleh
May 10, 2022, 05:46 pm 2 min read
How Tiger Global lost $17 billion in tech investments
Tiger Global lost 43.7% of its funds in the first four months of 2022 (Photo credit: VRD Nation)

New York-based Tiger Global, one of the world's biggest hedge funds, has been hit by losses of around $17 billion this year caused by the large-scale sell-off of technology stocks since last week. The hedge fund is known for its investments in high-growth, speculative companies, all of which have hit the ground after their pandemic peaks.

Context
Why does this story matter?
  • A look at the top 10 companies in the world will tell us that most of them deal in technology. Tech companies have made major profits for their investors in this century.
  • Therefore, it's unsurprising that when they are going through a rough patch, investors are meant to feel the burnt.
  • Even then, Tiger Global's $17bn loss is a wake-up call for the market.
Round-up
The fund lost two-thirds of its gains in 4 months

In the first four months of 2022, Tiger Global lost 43.7% of its main fund. In the same time frame, it also lost two-thirds of the gains it has made since its launch in 2021, according to calculations by LCH Investments. The fund's downfall is due to investors' fear of the effect of rising interest rates on their earnings from high-growth stocks.

Reason
Rising interest rate has caused panic selling of technology stocks

The top tech companies in the world have been going through a downward slide after the Federal Reserve increased the interest rates last week to curb inflation. Since then, tech giants have lost over $1 trillion in value. The rising interest rate has created doubt amongst investors about tech stocks and has led to panic selling. This had led large-scale sell-off of technology stocks.

Comparsion
Tiger Global's loss dwarfs Birdgewater Associate's pandemic meltdown

The global hedge fund industry is worth over $4 trillion. However, Tiger Global's dollar decline dwarfs many previous meltdowns. Yes, even the $12.1 billion loss reported by Ray Dalio's Bridgewater Associates lost in 2020 due to the pandemic. Or the infamous GameStop trading frenzy that cost Melvin Capital $6.8 billion in a month. Tiger Global comes out on top with its $17 billion loss!

Bio
Tiger Global is an offshoot of the erstwhile Tiger Management

Tiger Global was founded by Chase Coleman in 2001. He's one of the "Tiger Cubs" (the group of employees of erstwhile Tiger Management who started their own hedge funds). Helped by tech stocks, he has reaped rewards for investors since the fund's inception. At the beginning of 2021, Coleman was named the fourteenth best-performing hedge fund manager of all time.

Share this timeline
Facebook
Whatsapp
Twitter
Linkedin
Athik Saleh
Athik Saleh
Twitter
Athik Saleh covers auto and tech news at NewsBytes. He had started as an SEO content writer at NewsBytes and has since been elevated after exhibiting his automotive acumen. He has previously worked as a columnist at Law Insider India. He has a Bachelor's degree in Law from the National Law Institute University, Bhopal.
Latest
Inflation
Federal Reserve
Stock Market
Related
Latest
2022 Kawasaki Ninja 400 launched in India: Check features, price
2022 Kawasaki Ninja 400 launched in India: Check features, price Auto
US Supreme Court ends constitutional right to abortion
US Supreme Court ends constitutional right to abortion World
BJP backstabbed us, can't ally with them, says Uddhav Thackeray
BJP backstabbed us, can't ally with them, says Uddhav Thackeray Politics
Rahul was too tired to answer 20% of questions: ED
Rahul was too tired to answer 20% of questions: ED Politics
Draupadi Murmu files presidential poll nomination in presence of Modi
Draupadi Murmu files presidential poll nomination in presence of Modi India
Inflation
Snap slashes its Q2 outlook; shares tumble 30%
Snap slashes its Q2 outlook; shares tumble 30% Business
RBI keeps key interest rates unchanged for 11th consecutive time
RBI keeps key interest rates unchanged for 11th consecutive time Business
Fuel prices hiked again; petrol tops Rs. 100/liter in Delhi
Fuel prices hiked again; petrol tops Rs. 100/liter in Delhi India
Petrol, diesel prices hiked again for second consecutive day
Petrol, diesel prices hiked again for second consecutive day India
Why stock market, rupee, and oil prices are in crisis
Why stock market, rupee, and oil prices are in crisis Business
More News
Federal Reserve
US fines National Bank of Pakistan for anti-money laundering violations
US fines National Bank of Pakistan for anti-money laundering violations World
35 US-banks would survive global economic recession: US Federal Reserve
35 US-banks would survive global economic recession: US Federal Reserve Business
Gold prices fall by Rs. 300 on weak global-cues, low-demand
Gold prices fall by Rs. 300 on weak global-cues, low-demand Business
Gold prices steady after four-month low
Gold prices steady after four-month low Business
Ex-RBI governor Raghuram Rajan to next head US Federal Reserve?
Ex-RBI governor Raghuram Rajan to next head US Federal Reserve? World
More News
Stock Market
Sensex climbs to 52,266 points, Nifty settles at 15,557 points
Sensex climbs to 52,266 points, Nifty settles at 15,557 points Business
Sensex slips to 51,823 points, Nifty settles below 15,450
Sensex slips to 51,823 points, Nifty settles below 15,450 Business
Sensex rises 934 points, Nifty settles above 15,600 points
Sensex rises 934 points, Nifty settles above 15,600 points Business
Sensex closes at 51,598 points, Nifty settles at 15,350
Sensex closes at 51,598 points, Nifty settles at 15,350 Business
Sensex falls 135 points, Nifty settles below 15,300 points
Sensex falls 135 points, Nifty settles below 15,300 points Business
More News
Related
#FacebookDown: Facebook, WhatsApp, Instagram are all down for users worldwide
#FacebookDown: Facebook, WhatsApp, Instagram are all down for users worldwide Technology
Next News Article
Next News Article

Love Business news?

Subscribe to stay updated.

Business Thumbnail
India News Business News World News Politics News Sports News Technology News Entertainment News Auto News Lifestyle News Inspirational News
Career News Bengaluru News Delhi News Mumbai News Mukesh Ambani Indian Premier League (IPL) Karnataka Samsung Xiaomi West Bengal
Bihar Virat Kohli Rohit Sharma Haryana Narendra Modi Arvind Kejriwal Tamil Nadu Gujarat Yogi Adityanath YouTube
Instagram Hollywood News Uttar Pradesh Kerala Netflix Bollywood News Mamata Banerjee Maruti Suzuki Rahul Gandhi Elon Musk
Shah Rukh Khan Chelsea FC OPPO Akhilesh Yadav Indian Cricket Team Apple Manchester United Salman Khan Cryptocurrency OnePlus
Amitabh Bachchan ICC Women's World Cup Vivo India vs Sri Lanka
About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive IPL 2022 Schedule IPL 2022 Points Table Find Cricket Statistics
Follow us on
Facebook Twitter Linkedin Youtube
All rights reserved © NewsBytes 2022