Tiger Asia lost 16% through May 15th primarily because of its short positions in Chinese stocks, a source told Bloomberg.
The Tiger Cub’s losses were much worse until recently. In the first two weeks of May, the fund rose 10%.
Asset losses, an SEC investigation, and employee turnover have hit the firm, too. AUM currently is $1.3 billion, down from $3 billion at the end of September, according to Bloomberg. In October the firm received a subpoena from the SEC. And 4 employees have left recently.
Here’s what’s killing it in 2011, according to Bloomberg’s source – more than 90% of the fund’s founder’s, Bill Hwang’s, short positions in China were held in the first quarter, betting that prices for financial, Internet and media companies would fall.
Tiger Asia is one of many Tiger cubs that are reportedly having difficulty recently; most had low returns in 2010.
Hwang founded Tiger Asia in 2001. Before that, he worked as an equity analyst at Julian Robertson’s Tiger Management, which then seeded Tiger Asia. He also worked at Peregrine Securities and Hyundai Securities.