Key Takeaways
- • Tiger Global Management's flagship equity-focused hedge fund declined 6.3% in May 2021, pushing year-to-date performance into negative territory at -0.8% through the first five months of the year.
- • The fund's underperformance significantly trails both its peer group and broader market benchmarks: the average stock-picking hedge fund gained 6.8% year-to-date (up 0.4% in May alone), while the S&P 500 returned 13% including reinvested dividends.
- • Tiger Global's flagship fund remains the primary performance drag for the firm, with the long-only fund also declining 3.9% in May but maintaining positive year-to-date returns.
- • The May decline reflects continued volatility in equity markets and positions Tiger Global among underperforming large hedge funds during a period of strong overall market performance.
Summary
Tiger Global Management's flagship hedge fund posted a 6.3% loss in May 2021, marking a significant monthly decline that has left the fund underwater for the year. According to Bloomberg reporting, the equity-focused fund has declined 0.8% for the first five months of 2021, a notably weak result relative to comparable investment vehicles during a period of broad market strength.
The fund's May performance stands in sharp contrast to both its direct peer group and broader equity indices. The average stock-picking hedge fund, as measured by Hedge Fund Research's Equity Hedge Total Asset Weighted Index, gained 6.8% year-to-date and posted a modest 0.4% gain during May itself. The wider market backdrop was substantially stronger, with the S&P 500 delivering 13% total return through May including reinvested dividends—meaning Tiger Global's flagship fund has significantly underperformed the broad market by over 1,300 basis points year-to-date.
The weakness appears concentrated in Tiger Global's flagship vehicle. The firm's long-only fund, by contrast, declined 3.9% in May but maintains a positive year-to-date performance, suggesting the flagship's equity-focused strategy has borne the brunt of market headwinds or positioning challenges during the May volatility period. The divergence between the two funds indicates that Tiger Global's core flagship strategy has faced particular challenges in capturing market gains available to broader hedge fund peers and passive equity benchmarks through the first half of 2021.
The fund's May performance stands in sharp contrast to both its direct peer group and broader equity indices. The average stock-picking hedge fund, as measured by Hedge Fund Research's Equity Hedge Total Asset Weighted Index, gained 6.8% year-to-date and posted a modest 0.4% gain during May itself. The wider market backdrop was substantially stronger, with the S&P 500 delivering 13% total return through May including reinvested dividends—meaning Tiger Global's flagship fund has significantly underperformed the broad market by over 1,300 basis points year-to-date.
The weakness appears concentrated in Tiger Global's flagship vehicle. The firm's long-only fund, by contrast, declined 3.9% in May but maintains a positive year-to-date performance, suggesting the flagship's equity-focused strategy has borne the brunt of market headwinds or positioning challenges during the May volatility period. The divergence between the two funds indicates that Tiger Global's core flagship strategy has faced particular challenges in capturing market gains available to broader hedge fund peers and passive equity benchmarks through the first half of 2021.
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