Tiger Legatus, a $200 million Tiger Grandcub run by former Viking Global portfolio manager Jesse Ro, bet big on DiDi Global, which has immediately run into trouble since its $4.4 billion IPO.
DiDi, the Chinese ride-sharing app that went public at the end of June, was one of several China-based companies hit as the Chinese government signaled an impending crackdown on internet and tech companies. The Uber competitor is a favorite among hedge funds, with many — including Tiger Legatus — investing before the public offering.
But Tiger Legatus' stake in DiDi made up more than 50% of the firm's public equities portfolio at the end of the second quarter, and the firm could be looking at serious losses thanks to the sell-off in July.
The firm, seeded by Tiger Management founder Julian Robertson, runs a concentrated portfolio of roughly a dozen names.
The next top holdings for the firm were a $21 million bet on Expedia and a $12 million on Patria Investments, a Latin America-focused investment manager. To compare, the firm's bet on DiDi was worth over $100 million at the end of the second quarter.
DiDi's stock has fallen dramatically since July's start. After jumping up to $16.40 a share on July 1, the stock fell to $8 on July 23. It closed at $8 a share on Monday.
Tiger Legatus, which was launched in 2009, was such a big believer in DiDi before the IPO that it ran a special-purpose vehicle — which hedge fund managers like Bill Ackman occasionally raise to pile more money into their favorite ideas — with just a single holding: DiDi.
Tiger Legatus did not respond to requests for comment.
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