Most long-short hedge funds with roots in Tiger Management are trailing the broad market at the halfway point this year: The majority have gains in the low teens or single digits. In some cases their long-only funds are faring better.
The most glaring exception: Light Street Capital Management. Institutional Investor previously reported that its long-short fund posted a 9.5 percent gain in June and is up 54.6 percent for the year. The long-only fund surged 8.9 percent for the month and 36.9 percent so far this year. In comparison, the S&P 500 was up 15.3 percent in the first six months, including dividends reinvested.
D1 Capital Partners’ public securities class posted a 20.1 percent rise in the first half, according to two people who have seen the results. However, results for Dan Sundheim’s hedge fund firm’s largest class, which devotes 35 percent or so of its assets to private investments, could not be determined.
Stephen Mandel Jr.’s Lone Pine Capital barely beat the benchmark in first-half 2024. Its long-short and long-only funds were both up between 1 and 2 percent in June and about 1 percent for the second quarter, an investor says. For the first half, the long-short fund and long-only funds climbed 16 percent and 15 percent, respectively.
As of the end of the first quarter, three Magnificent Seven stocks ranked among the firm’s four largest U.S. longs: Meta Platforms, Microsoft, and Amazon. Taiwan Semiconductor Manufacturing Corp., an AI play, was the second-largest.
Elsewhere, Chris Hansen’s Valiant Capital Management gained 6.73 percent in its public securities portfolio in June, boosting its gain for the year to 13.3 percent, according to a monthly email to clients that was seen by II. In the first quarter, Valiant established a new large stake in TSMC that is now its second-largest long position, according to its first-quarter letter. A first-quarter 13F filing revealed that Maplebear, the parent of online shopping company Instacart, was by far the largest common stock long, followed by Microsoft.
Lee Ainslie III’s Maverick Capital posted gains in its long-short fund of nearly 1 percent in June and 11.32 percent for the first half. Maverick Long increased nearly 3 percent for the month and 13.82 percent for the year. Maverick Long Enhanced also rose about 3 percent in June and is now up 13.3 percent for the first six months, according to a hedge fund database.
South Korean e-commerce company Coupang remains Maverick’s largest long, accounting for roughly 18 percent of U.S. common stock assets as of the end of the first quarter. The next two largest U.S. common stock long positions were Amazon and Nvidia.
Chase Coleman’s Tiger Global Management showed a 4.1 percent gain in June in its long-short fund, with a return of 12.8 percent for the first half, say two people who have seen the results. The firm’s crossover fund, which allocates a big chunk of assets to private companies as well as public securities, was up 15.9 percent in the first half of the year, the sources reported. Meta and Microsoft combined to account for nearly one-third of the firm’s U.S.-listed assets at the end of the first quarter.
Philippe Laffont’s Coatue Management, for its part, posted a 9.6 percent rise in the first half after gaining 1.3 percent in June, according to someone who has seen the results. Meta, Amazon, and Microsoft were the three largest U.S. long positions at the end of March, and TSMC was the fifth largest after the hedge fund firm built most of its position during the quarter.
Elsewhere, O. Andreas Halvorsen’s Viking Global Investors had an 8.2 percent jump in its long-short fund in the first half after gaining 2.1 percent in June, according to an investor. Viking Long Fund fared better than the hedge fund, climbing 10.7 percent for the half after rising 2.6 percent last month.