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Tiger Global Has 50% Return on Longs as Shorts Get Amazoned: Hedge Fund Looks to Expand
As Charles “Chase” Coleman looks back on 2017, with his hedge fund Tiger Global up 50% on long exposure but down 19% on the shorts, he has no regrets, sort of.
“TGI’s hit rate on its long positions was the highest ever in our 17-year history and the portfolio generated four times as much profit from its three largest gainers as it lost on its three worst performing positions,” he told investors in year-end review letter reviewed by ValueWalk ( the letter is dated January 31st, 2018). “On the short side of the portfolio, we felt similarly good about our research process in 2017, but the outcomes were more frustrating. Our short portfolio consists largely of businesses we believe are on the wrong side of change, frauds, and cyclical assets that are over-earning and trading at peak multiples.”
The hedge fund states:
In 2017, six of our shorts were acquired
While we rarely mention short positions, we feel these two exemplify some of the frustration we experienced shorting stocks in 2017.
Read more at ValueWalk.
Photo: jojo nicdao