Tiger Cubs Stung by Rout Dumped Stocks, Then Missed Rally

When equities tumbled earlier this year, saddling some of the hedge fund industry’s most successful stock-pickers with crushing losses, they rushed to unload shares to halt the bleeding. 

But that hasty retreat left Tiger Global Management, Coatue Management and D1 Capital Partners ill-positioned to capitalize on a powerful market reversal in July, when the S&P 500 logged its best month since November 2020. By then they had already jettisoned large chunks of their portfolios and increased short wagers on stocks they expected to fall.