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4-8-2022  

B y Suman suthar                              

 Please share articles using the top or side share buttons. Sharing copied content violates FT.com's T&Cs and Copyright Policy. Tiger Global, Chase Coleman's hedge firm, suffered substantial losses in the second quarter due to a tech market collapse.

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The firm's long-only fund concluded the second quarter down 63.6% after fees, while its flagship fund completed the first half of the year down 50% after costs.

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The business warned investors it overestimated the impact of growing global prices and approached 2022 with too much exposure.Tiger Global dismissed inflation worries in the past because it felt technology advancement was "deflationary," a strategy that succeeded during the post-crisis bull run in equities.

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The hedge fund's strong exposure to US and Chinese technology and software businesses made it one of the best-performing and fastest-growing in the world, amassing tens of billions in profits.The fund was unprepared for Russia's war of Ukraine, soaring inflation, and a hawkish Fed.

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“This time, we didn't grasp how exceptional the conditions were,” the business stated, acknowledging it was overexposed to unpredictable financial markets.Tiger was unavailable for comment.Tiger's flagship fund gained 0.4% in July, bringing year-to-date losses to 49.8%.

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Tiger said it will let investors withdraw more capital from its funds this year, raising annual redemption restrictions to 33% from 25% for its flagship product and 20% for its long-only fund.Please share articles using the top or side share buttons.

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Tiger admits misjudging market volatility this year, but said investors it will stick to the same strategy since Coleman started the firm after the dotcom crash. Coleman founded Tiger Global when Julian Robertson terminated Tiger Management in 2000.

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“We think the same method we used in the previous 20 years, with enhancements and fresh battle scars, can recover losses and deliver long-term, better performance,” the investor letter added.The firm has been selling off groupings in which it has "low conviction" and buying "the best firms at fascinating values."

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