“Tiger Cub” hedge-fund manager Philippe Laffont, who runs Coatue Management, has decided to return $US2 billion from its flagship fund to investors, CNBC’s John Jannarone reports citing an investor letter.
Last month was ugly for the long/short technology-focused fund.
Coatue was down 9% because of losses in tech stocks, the report said.
Laffont characterised last month’s market volatility as “sudden and deep as some of the gut-wrenching dislocations of 2000-2002 and 2008-2009.”
The fund’s flagship fund has about $US7 billion in assets under management. Laffont wrote that $US5 billion in assets would be the right amount for the flagship, the report said.
The $US2 billion is expected to be returned to investors on June 30.
Coatue invests in tech stocks such as Apple, Google, Facebook, LinkedIn, Netflix, Pandora and Yelp, the fund’s most recent 13-F securities filing shows.
Laffont’s hedge fund was seeded by legendary fund manager Julian Robertson of Tiger Management nearly 15 years ago.
In the meantime, Coatue has been raising funds for a “hybrid fund” that will start investing hedge funds and private equity. So if you look at the net, the assets under management really isn’t changing.