Financial Market

FirstFT: Tiger Global slashes tech bets after stock market sell-off

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Tiger Global, the hedge fund known for making big bets on technology companies, has slashed its shareholdings and dumped stakes in companies including Netflix and Rivian as it suffered heavy losses during this year’s stock market rout.

The total value of Tiger Global’s public stock positions fell from $46bn at the end of last year to just over $26bn at the end of the first quarter, according to regulatory filings released on Monday. The decline in value reflected lower stock market valuations as well as share sales.

In a significant retreat, the New York-based firm sold its entire stake in consumer tech companies including dating app Bumble, vacation rental company Airbnb and Didi, the Chinese ride-hailing group.

Its sell-off came as research analysts at JPMorgan Chase endorsed a clutch of Chinese internet stocks deemed “uninvestable” just two months ago, in a significant shift in sentiment towards the sector. In a series of changes on Monday, analysts upgraded their ratings for NetEase, Tencent, Alibaba, Meituan, iQIYI, Dingdong and Pinduoduo.

Tiger Global also significantly reduced its exposure to trading app Robinhood, selling almost 80 per cent of its stake, and Peloton, the beleaguered connected fitness company. Tiger Global declined to comment.

  • Go deeper: A sudden sobriety has descended over the US tech sector, prompted by a deep and broad stock sell-off as investors fret over rising interest rates and slowing economic growth.

Do you have feedback on today’s newsletter? Email me at firstft@ft.com. Thanks for reading FirstFT Europe/Africa — George

1. Investors pull $7bn from Tether as stablecoin jitters intensify Traders have yanked $7bn from Tether, cutting its market value about 9 per cent since the world’s biggest stablecoin last week briefly lost its peg against the US dollar, intensifying concerns about the assets that underpin the global cryptocurrency market.

  • More on crypto: Just weeks after Treasury minister John Glen made an unexpected pitch for the UK to be a global crypto hub, digital currency markets have experienced a disorderly collapse, Helen Thomas writes.

Line chart of Total value of tokens in circulation $bn showing Tether redemptions snap growth streak

2. Companies back 2035 EU petrol ban A cross-sector coalition of companies, including Unilever, Zurich, Sanofi and Uber, have urged the EU to ban the sale of new petrol and diesel vehicles from 2035, saying such a decision would “set in motion an urgently needed systemic transformation and make Europe a global leader in a key industry”.

3. UK criminal justice creaking under ‘unacceptable’ delays Criminal justice is “delayed, denied or disrupted in far too many instances” in England and Wales even as crime rates rise, according to a chief inspectors’ report on the impact of the coronavirus pandemic.

4. Putin signals acceptance of Finland and Sweden in Nato Vladimir Putin has indicated that Russia would tolerate Finland and Sweden joining Nato, but warned that the Kremlin would respond if the alliance installed bases or equipment as it did in the Baltic states. Turkey’s president Recep Tayyip Erdoğan, however, has objected to the nations’ applications.

5. NBA extends global reach with international stars Nikola Jokić of Serbia last week became the fourth foreign-born player to win the US National Basketball Association’s most valuable player award multiple times. The success of international players is the result of a multi-decade effort by US sports to build fan bases abroad.

A huge billboard depicts Serbian basketball player Nikola Jokić in Belgrade
A billboard depicts Serbian basketball player Nikola Jokić in Belgrade © Andrej Čukić//EPA-EFE/Shutterstock

The day ahead

Economic data Eurozone first-quarter gross domestic product data are out, while France has first-quarter unemployment data and Italy releases April’s consumer price index. The UK publishes jobless figures, April insolvency and a first-quarter productivity flash estimate. In the US, April retail sales and industrial production and May’s housing market index are out.

Corporate earnings Home Depot, Imperial Brands, Land Securities, Vodafone and Walmart release results, as does JD.com, the Chinese ecommerce group whose founder Richard Liu stepped down last month.

Nato enlargement Finnish president Sauli Niinistö makes a state visit to Stockholm as Finland and Sweden prepare to join Nato.

Events Andrea Enria, chair of the European Central Bank’s supervisory board, gives a keynote speech at the Institut Montaigne in Paris. The two-day Clean Energy for EU Islands Forum opens on the Greek island of Rhodes, hosted by European commissioner for energy Kadri Simson.

Correction: In Friday’s quiz, one of the questions did not match the answer. We apologise for the error.

What else we’re reading

Deutsche Bank looks to escape decade of scandal and strife For incoming chief Alex Wynaendts, the priority will be ensuring Deutsche Bank is in the best financial shape ahead of what is likely to be a bruising, years-long battle to create a European banking champion that can compete with US heavyweights. But some shareholders are already questioning whether he is the right person for the job.

Dollar’s rise increases risks for global economy With so much going on in the global economy and financial markets, the US dollar’s recent appreciation has attracted less attention than expected, writes Mohamed El-Erian. There are hazards in the greenback’s rapid rise.

Food insecurity is a bigger crisis than energy Governments are spending a lot of time and resources trying to mitigate the soaring cost of energy following Russia’s invasion of Ukraine. But Megan Greene warns that the war has sown the seeds of an even bigger crisis: a global food shortage.

A food market in Colombo, Sri Lanka
A market in Colombo, Sri Lanka. Food insecurity is a source of social unrest and geopolitical risk © Ishara S Kodikara/AFP/Getty Images

The new ESG realpolitik The world is not ready for an immediate shift to green energy, writes Patrick Jenkins. Pushing businesses out of fossil fuels and into renewables is the next step — but an unappealing one as long as ultra-high oil and gas prices persist. Being frank is as important for the reputation of ESG as it is for the future of the planet. Sign up here for our ESG and sustainable finance newsletter, Moral Money.

Is Elon Musk too big to regulate? Many on Wall Street saw Elon Musk’s tweet announcing he was putting his purchase of Twitter “temporarily on hold” — and his statement on Monday that the deal might “fall through” — as a negotiating tactic. But legal experts said it was another example of the Tesla chief executive flouting securities laws.

Travel

The King’s Highway in Jordan is one of the world’s oldest, most chequered and most romantic roads, as legendary and evocative as the Silk Road. Follow along in the footsteps of John the Baptist and TE Lawrence.

A view of the King’s Highway in Jordan
The highway features in the Bible, in biographies of Richard the Lionheart and in King Hussein’s admirable efforts to green Jordan © Alamy

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