Chase Coleman is beating most hedge fund managers so far
this year and is off to one of his best years.
The Tiger Seed was up a whopping 9 percent in June and is
now up 34.5 percent year-to-date, according to investors.
Coleman has been making big bets on Internet companies, a
number of them privately-held. Among his most celebrated stakes
are in Facebook and LinkedIn.
He also reportedly paid $10 million for a 40 percent
position in Anywayanyday.com, a Russian internet ticket booking
Private equity-like investments are said to slightly above
10 percent of the fund. In fact, in February he reported to the
Securities and Exchange Commission that he had met his goal of
raising $1.25 billion for Tiger Global Private Investment
Partners VI, L.P., his sixth venture capital fund.
On Thursday, Coleman disclosed he has a 5.88 percent stake
in Homeaway, which runs online services for vacation rental
properties. On June 28 it went public at $27 per share. It
closed Thursday at $41.01.
On June 30, he disclosed that on June 20 he raised his stake
to 7.3 percent in Bitauto Holdings Ltd., which provides
Internet content for the auto industry in China. Good timing.
The stock bottomed at $6.74 that day and now trades at $7.54, a
nearly 12 percent gain. Even before the recent purchase, Tiger
Global was the largest shareholder.
Also in June he raised his stake in online travel company
MakeMyTrip Ltd., by roughly 50 percent, to 16.9 percent. He was
already the largest shareholder before the recent
One investor in his fund says this heavy Internet exposure
is a little concerning, but concedes you must brace
for some inevitable downward volatility sometime this year.
Still his large gains so far provide some cushion for a
potential drawdown, the investor stresses.
Coleman is clearly the most successful of the Tiger Seed
breed, those managers who were staked personally by Tiger
Management founder Julian Robertson. Coleman came from old
money. He grew up Charles Payson Coleman III in tony Old
Brookville on Long Islands North Shore and is a
descendant of Peter Stuyvesant, the last Dutch governor of New
York who built the 'wall' on Wall Street. His 2005 wedding at
Bethesda-by-the-Sea in Palm Beach, Fla., which was attended by
370 people, was featured in the society pages.
Coleman joined Julian Robertsons Tiger Management as a
technology analyst after graduating from Williams College with
an economics degree in 1997. In 2001 he started Tiger
Technology now called Tiger Global a
long/short equity fund that was one of the first hedge funds
seeded by Robertson, who retained an equity interest in the
Coleman was the youngest of the group at the time.
By the end of 2007, Tiger Global, had grown to more than $6
billion, with a seven-year annualized return of about 44
However, he dropped 26 percent in 2008 and 1 percent in
2009, before rebounding in 2010, climbing 18 percent.
He'll be betting that this Internet boom does not end as
ugly as the one in 2000.