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Chase Coleman

Chase Coleman’s Tiger Global Management disclosed that it has enlarged its position in Inc. (NYSE:WUBA) by 10.74 million shares since the reporting period of the firm’s most recent 13F filing, according to a 13G form filed with the SEC. According to the recently-released filing, Tiger Global Management currently owns 13.19 million shares in the Chinese online marketplace, which represent 6.3% of its outstanding common stock.

TIGER GLOBAL Investor Letter

Tiger Global Management is a fundamentally-oriented investment firm established by Tiger Cub Charles Coleman in 2001. The New York-based firm specializes in long/short equity investing by employing a fundamental analysis approach. As the fund’s name suggests, Tiger Global makes its investments globally and is primarily seeking opportunities in China, Southeast Asia, Latin America, and Eastern Europe. The firm is currently undergoing a significant management change, as Feroz Dewan, one of the firm’s investment heads, has recently left to start his own investment firm. Feroz Dewan had managed the firm’s $6 billion hedge fund business since 2003. Following his departure, Scott Shleifer has taken the reigns of Tiger Global’s public equity business, which currently manages $10 billion in assets. According to the latest 13F filing for the period as of the end of the first quarter of the current year, Tiger Global Management oversees a public equity portfolio worth $9.12 billion.

Chase Coleman
Chase Coleman
Tiger Global Management LLC

Hedge funds and other big money managers like Chase Coleman tend to have the largest amounts of their capital invested in large and mega-cap stocks like Alibaba Group Holding Ltd (NYSE:BABA) because these companies allow for much greater capital allocation. That’s why if we take a look at the most popular stocks among funds, we won’t find any mid- or small-cap stocks there. However, our backtests of hedge funds’ equity portfolios between 1999 and 2012 revealed that the 50 most popular stocks among hedge funds underperformed the market by seven basis points per month, showing that their most popular picks and the ones that received the bulk of their capital were not actually their best picks. On the other hand, their top small-cap picks performed considerably better, outperforming the market by 95 basis points per month. This was confirmed through backtesting and in forward tests of our small-cap strategy since August 2012. The strategy, which involves imitating the 15 most popular small-cap picks among hedge funds has provided gains of more than 123%, beating the broader market by over 66 percentage points through the end of April (see the details). Inc. (NYSE:WUBA) is a New York-listed company that operates the largest online marketplace in China. Its online marketplace allows local merchants and consumers to connect, share information and conduct business. The shares of have gained nearly 30% year-to-date despite riding the downtrend wave that has hit Chinese stocks since the beginning of June.

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