Tiger Global, one of the world’s largest hedge funds, saw its flagship fund fall by 50% in the first half of the year after it underestimated the impact of a surge in global inflation on markets, according to a letter to investors. The U.S.-based fund lost 24.7% in the second quarter, increasing its loss for the first half to 50% from the end of last year, the letter issued by Tiger earlier this week and seen by Reuters on Friday said.
In the letter, Tiger said it underestimated the circumstances that had enabled inflation to rise and persist. The fund’s China exposure, however, fared better in its overall portfolio, it said, without giving details, despite a sharp slowdown in the world’s second-largest economy and turmoil in the property sector.
This year has been extremely challenging for the global hedge fund industry, as assets under management (AUM) across the sector declined by $79 billion in the first six months, according to data by industry tracker HFR. The decline was driven by $37.7 billion of performance-based decline and $41.1 billion of net outflows, the data showed.