Tiger Legatus announced today that it will be shutting down after 13 years of business. Jesse Ro, the hedge fund’s founder, had previously worked at Andreas Halvorsen’s Viking Global before leaving to found his fund in 2009. Tiger Legatus was also funded by legendary investor Julian Robertson’s Tiger Management.
In a letter, Ro told investors his hedge fund had not delivered acceptable returns. Interestingly enough, Tiger only declined by 2.8% during the first quarter and by 1% during 2021. Meanwhile, the S&P 500 declined by 5.5% during Q1.
Tiger Legatus isn’t the only hedge fund to announce its closing today. ADG Capital Management, a London-based quant fund, announced that it would be shutting down after nine years. At its peak, the fund managed over $3 billion. CEO Hasan Abdat attributed the closing to losses and client outflows this year.
Meanwhile, there is speculation that crypto hedge fund Three Arrows Capital, or 3AC, is facing insolvency issues. In March, the fund had an estimated $10 billion in assets under management (AUM). It hasn’t been confirmed what exactly is going on at the fund, but co-founder Su Zhu tweeted:
“We are in the process of communicating with relevant parties and fully committed to working this out.”
So, what exactly was Tiger betting on that caused it to shut down? Let’s get into the details.
Hedge Fund Tiger Legatus Shuts Down
As of Q1, Tiger had $203 million in AUM, of which $62 million was attributed to managed 13F securities. The fund operated under a heavy-conviction and highly concentrated strategy. Tiger held only 12 stocks as of Q1, and its top ten holdings account for 98.31% of its 13F portfolio.
Meanwhile, the fund had an average holding period of 5.17 quarters for stocks in its portfolio. The closing of Tiger means the fund will most likely liquidate all of its holdings, unless another resolution is brought up. Let’s take a look at what they are.
- Patria Investments (NASDAQ:PAX). PAX accounts for 29.68% of the fund’s portfolio. During Q1, Tiger sold 403,137 shares of the company.
- Tenet Healthcare (NYSE:THC). THC accounts for 22.32% of the fund’s portfolio. During Q1, Tiger purchased 162,000 shares of the company.
- Apollo Global Management (NYSE:APO). APO accounts for 9.44% of the fund’s portfolio. During Q1, Tiger’s APO position remained constant.
- Expedia (NASDAQ:EXPE). EXPE accounts for 8.22% of the fund’s portfolio. During Q1, Tiger sold 31,300 shares of the company.
- Uber (NYSE:UBER). UBER accounts for 8.12% of the fund’s portfolio. During Q1, Tiger sold 27,000 shares of the company.
- DraftKings (NASDAQ:DKNG). DKNG accounts for 5.59% of the fund’s portfolio. During Q1, Tiger purchased 19,000 shares of the company.
- Codere Online Luxembourg (NASDAQ:CDRO). CDRO accounts for 4.42% of the fund’s portfolio. During Q1, Tiger sold 210,300 shares of the company.
- Cohn Robbins (NYSE:CRHC). CRHC accounts for 3.59% of the fund’s portfolio. Tiger acquired its entire stake during Q1.
- Vivid Seats (NASDAQ:SEATS). SEATS accounts for 3.49% of the fund’s portfolio. During Q1, Tiger sold 408,000 shares of the company.
- Madison Square Garden Sports (NYSE:MSGS). MSGS accounts for 3.45% of the fund’s portfolio. During Q1, Tiger sold 12,000 shares of the company.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.