A number of once-high-flying stock hedge funds have racked up a second consecutive year of losses erasing billions of dollars of clients’ wealth in the process, according to a report by Bloomberg.
A number of once-high-flying stock hedge funds have racked up a second consecutive year of losses erasing billions of dollars of clients’ wealth in the process, according to a report by Bloomberg.
The report cites unnamed sources as revealing that Light Street, Whale Rock Capital Management, Tiger Global Management and Perceptive Advisors have all posted declines of more than 40% over the last two years. And with investors paying lower, or in some cases, no fees on gains until losses are recovered, smaller firms could be heading for problems.
After racking up big gains as high-profile tech and healthcare stocks including Meta Platforms, Tesla, and Amicus Therapeutics, soared, this year’s rapid inflation rises saw this same stocks tanked with many funds missing out on the opportunity to up short bets and benefit from their fall.
Chase Coleman’s Tiger Global hedge fund has lost 57% over the past two years, which in dollar terms means it has erased all the gains it made since the end of 2018.
Alex Sacerdote’s Whale Rock meanwhile, is down 47% over the same period with assets falling from $12 billion at then of last year to $6 billion now.
The biggest loser in percentage terms though, is Glen Kacher’s Light Street which oversaw about $2 billion as of the end of 2021, and has now lost almost two-thirds of its value over two years.
