Tiger Global Takes 9.9% Stake in Groupon

Tiger Global Takes 9.9% Stake in Groupon

Tiger Global Management, an $ 8 billion hedge fund, disclosed on Monday that it had taken a 9.9 percent stake in Groupon, as the daily deals company’s stock hovers near all-time lows.

Tiger Global’s 13G filing with the Securities and Exchange Commission indicated that the investment is passive, and that the firm does not plan to actively call for changes in corporate strategy.

Instead, it appears that the hedge fund simply thinks that Groupon is undervalued. The company’s shares closed at $ 3.11 on Monday, down 88 percent since they began trading last year.

Hailed in the run-up to its initial public offering as one of the fastest-growing companies in recent memory, Groupon has struggled to convince investors that its future is bright. Instead, a series of disappointing quarterly financial results, criticisms from merchant partners and accounting troubles have weighed heavily on its stock.

Investors have also questioned whether Groupon — which now offers both daily coupons and direct product sales — has figured out a sustainable business plan.

Tiger Global appears to be betting that the company and its chief executive, Andrew Mason, have. The hedge fund has made a name for itself as a specialist in technology companies, having invested in the likes of LinkedIn and Facebook before the social networks went public. That strategy has reaped windfalls for the firm, with its returns this year reportedly topping 25 percent.

Its founder is Charles P. Coleman III, one of several protégés of the hedge fund billionaire Julian Robertson known as a “Tiger cub.” Mr. Coleman, a descendant of Peter Stuyvesant who goes by “Chase,” worked for Mr. Robertson’s Tiger Management before striking off on his own in 2000, backed with seed money from his mentor.


Leave a Reply

Your email address will not be published. Required fields are marked *