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Morning Brief: Tiger Global Hopes to Cash in on Spotify IPO

The firm, headed by Tiger Cub Chase Coleman, is the only hedge fund with a big enough position in the company to qualify as a key shareholder.

Chase Coleman’s Tiger Global Management is one of the largest investors in streaming music company Spotify Technology, which earlier this week submitted preliminary regulatory filings in preparation to go public. The investment firm, which has a sizable venture capital business along with several long-short equity hedge funds and a long-only fund, owns more than 12.183 million shares, or 6.9 percent of Spotify’s total ordinary shares, according to the filing. It also owns 2.2 percent of the voting power.

Most of the shares are owned by Tiger Global’s private funds. So far there is no indication Tiger Global plans to sell any of the shares in the IPO. No hedge fund has a large enough position to qualify for the regulatory filing’s list of key shareholders. Tiger Global is headed by Chase Coleman, Lee Fixel, and Scott Shleifer. In January, we reported that D.E. Shaw sold its stake of 12,000 shares in Spotify.

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Separately, Tiger Global participated in the $51 million Series D financing for Indian home rental startup NestAway Technologies, according to economictimes.com. The investment firm, which previously invested in the company, reportedly pumped in $5 million to $8 million in the latest financing.

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Dan Loeb’s Third Point Offshore lost 3 percent in February, cutting its gain for the year to 0.70 percent, according to its monthly report. The multistrategy fund’s equity long book lost 3.9 percent, but the short book gained 0.80 percent, for a net loss of 3.1 percent in its long-short strategy. The credit book’s long portfolio gained 0.40 percent, while its all-encompassing strategy called “other” lost 0.40 percent, all from the long side. The “other” strategy includes interest rates and foreign exchange, according to a footnote. Entering March, the long-short book was 73.4 percent net long, down slightly from 77 percent the previous month.

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Engaged Capital said it bought more than 1.4 million shares of The Hain Celestial Group on February 28, boosting its stake to 11.3 percent, according to a regulatory filing. In July, Engaged disclosed it owned 9.9 percent of the organic food company and submitted seven candidates to stand for the board of directors. In late September Hain agreed to revamp its board under an agreement with Engaged.

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