Tiger Global Is Betting on RDDT Stock After the Reddit IPO


  • Tiger Global disclosed a new stake in Reddit (RDDT) shortly after its initial public offering.
  • The hedge fund purchased 500,000 shares, making Reddit its 33rd-largest holding out of 41 total positions.
  • RDDT stock is surging higher today on a licensing deal with OpenAI.
RDDT stock - Tiger Global Is Betting on RDDT Stock After the Reddit IPO

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Reddit (NYSE:RDDT) stock is in the spotlight after Chase Coleman’s Tiger Global revealed a stake in the online community forum through its first-quarter 13F. Institutional investors are required to submit a 13F filing 45 days after the end of each quarter. Coleman is a part of the Tiger Cub class, which are students of hedge fund pioneer Julian Robertson.

During Q1, Tiger Global initiated a position in RDDT stock, picking up 500,000 shares. That’s equivalent to 0.13% of the hedge fund’s 13F portfolio, making Reddit its 33rd-largest position out of 41 total positions. Tiger Global’s allocation is still small, which hints at the hedge fund taking a starter position while waiting for additional confirmation to adjust its stake.

This is noteworthy because Reddit had its initial public offering (IPO) on March 21, while Tiger Global’s 13F documents its holdings as of the end of March. This means that the hedge fund purchased shares right after the IPO.

RDDT Stock: Tiger Global Buys 500,000 Shares

Tiger Global operates as a long-term investor, making it likely that it is still holding onto its Reddit shares. It has an average 13F holding period of 11.71 quarters, or nearly three years. Its total 13F assets under management (AUM) tallies in at a significant $18.29 billion.

The hedge fund’s purchase was quite timely, as RDDT is up by almost 30% since the end of March. This morning, the company announced a licensing deal with OpenAI, sending its shares higher.

“OpenAI will bring Reddit content to ChatGPT and new products, helping users discover and engage with Reddit communities,” said Reddit. “To do so, OpenAI will access Reddit’s Data API, which provides real-time, structured, and unique content from Reddit.”

On top of that, OpenAI will also become a Reddit advertising partner while providing the company with new features powered by AI.

Tiger Global wasn’t the only 13F filer interested in RDDT stock. These investors own a total of 20.60 million shares. FMR was the largest buyer during Q1, picking up 2.36 million shares, followed by Inclusive Capital Partners with its 2.08 million share purchase.

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

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/tiger-global-is-betting-on-rddt-stock-after-the-reddit-ipo/.

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