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Most Tiger-Related Funds Lost Money in February — But Are in the Black for the Year

Most Tiger-Related Funds Lost Money in February — But Are in the Black for the Year

  • 17.03.2025 18:00
  • institutionalinvestor.com
  • Keywords: Recession

Most Tiger-related funds lost money in February but remain profitable for the year, with varying performances among top firms like Viking and Maverick.

Nvidia Services

Estimated market influence

Viking Global Investors

Positivesentiment_satisfied
Analyst rating: N/A

Boosted bets on financial services companies, including JPMorgan Chase and Schwab.

Maverick Capital

Positivesentiment_satisfied
Analyst rating: N/A

Climbed 50 basis points last month; helped by shorts but hurt by longs.

D1 Capital Partners

Neutralsentiment_neutral
Analyst rating: N/A

Flat last month, up 7.72% for the year.

Lone Pine Capital

Negativesentiment_dissatisfied
Analyst rating: N/A

Declined 3.2% in February; Meta dropped 3%.

Coatue Management

Neutralsentiment_neutral
Analyst rating: N/A

Lost 2.2% in February, up 2% for the year.

Tiger Global Management

Positivesentiment_satisfied
Analyst rating: N/A

Up 5.8% for the year; held onto top positions like Meta and Microsoft.

Discovery Capital Management

Negativesentiment_dissatisfied
Analyst rating: N/A

Fell 4.35% in February, down 1.39% over two months.

Context

Business Insights and Market Implications

Overall Performance of Tiger-Related Funds

  • Most Tiger-related funds lost money in February but remained profitable for the year, outperforming major stock indices.
  • February was one of the most volatile months in recent memory, raising questions about future performance.

Fund-Specific Performance and Strategies

Viking Global Investors (O. Andreas Halvorsen)

  • February Performance: +80 basis points (bp), up 2.8% YTD.
  • Investment Strategy:
    • Doubled position in JPMorgan Chase, making it the largest U.S. long.
    • Increased stake in Charles Schwab by over 500%, now fifth-largest long.
    • Focus on financial services and payments companies: JPMorgan Chase, Visa, Bank of America, and Schwab.

Maverick Capital (Lee Ainslie III)

  • February Performance: Long-short fund +50 bp; long-only funds lost money (-1.2% for Maverick Long).
  • Portfolio Insights:
    • Amazon (-10.5%), Microsoft (-4%), and Nvidia (+4%) were key holdings.
    • Short positions in Japanese equities contributed to gains.

D1 Capital Partners (Dan Sundheim)

  • February Performance: Flat, up 7.72% YTD.
  • Strategy:
    • No major changes; maintained core positions.

Lone Pine Capital (Stephen Mandel Jr.)

  • February Performance: -3.2%, with a 4.3% gain for the year.
  • Key Holdings:
    • Meta Platforms and Amazon as top longs, down 3% in February.

Coatue Management

  • February Performance: -2.2%, up 2% YTD.
  • Portfolio Focus:
    • Amazon, Meta, Taiwan Semiconductor Manufacturing (TSMC), and Microsoft as largest U.S. longs.

Tiger Global Management (Chase Coleman)

  • February Performance: -40 bp, up 5.8% YTD.
  • Investment Strategy:
    • Held steady on seven of eight largest U.S. longs; trimmed one position.
    • Meta and Microsoft as top holdings.

Discovery Capital Management (Robert Citrone)

  • February Performance: -4.35%, down 1.39% YTD.
  • Portfolio Impact:
    • Losses driven by U.S. and Argentina equity longs, Latin American currency exposure.
    • Gains from short positions in Japanese equities and longs in Nigeria and Venezuela.

Market Trends and Implications

  • Focus on Tech and Financial Sectors: Many funds remain heavily exposed to high-profile tech stocks (e.g., Amazon, Meta, Microsoft) and financial services companies.
  • Volatility Impact: February’s losses highlight the risks of concentrated portfolios, particularly in volatile markets.
  • Strategic Adjustments: Some funds (e.g., Viking, Maverick) are diversifying into financial services to balance risk.

Competitive Dynamics

  • Outperformance Despite Volatility: Tiger-related funds have generally outperformed broader indices, maintaining their edge despite February’s challenges.
  • Diversification vs. Concentration: Funds like Viking and D1 are balancing sector-specific bets with broader diversification strategies.

Long-Term Effects and Strategic Considerations

  • Potential for Market Correction: Heavy reliance on a few tech giants (e.g., Amazon, Meta) could amplify losses during market downturns.
  • Investor Sentiment: February’s performance may influence investor confidence and fund flows in the near term.
  • Regulatory Risks: No direct mention of regulatory impacts, but ongoing scrutiny of large-cap tech exposure remains a concern.

Conclusion

The February performance of Tiger-related funds underscores the dual-edged nature of concentrated investing. While these funds have outperformed year-to-date, their reliance on volatile sectors like tech and financial services leaves them vulnerable to market fluctuations. Moving forward, fund managers will need to navigate increasing volatility and potential regulatory scrutiny to sustain long-term gains.