Charles “Chase” Coleman, manager of one of the world’s best-performing hedge funds during the past two years, has decided now is the time to bet on Groupon, basically the worst-performing major stock in the US this past year.
Coleman’s Tiger Global, with an AUM of about $8 billion, is going for Groupon in a big way. According to the SEC filing, Tiger is purchasing a 9.9 percent share in Groupon, a massive purchase of 65 million shares, to be completed by November 9. During the third quarter of 2012 Tiger, which is co-managed by Feroz Dewan, had already purchases a small percentage of Groupon.
It appears to be a pattern of Coleman’s lately to side with the underdog tech stocks which have been having a rather hard time of it. Tiger also purchased a large stake in Facebook not too long ago, which, along with Groupon, faltered grievously after their respective IPOs. In the case of Groupon, which launched its IPO about a year ago, its opening price per share was $20. Its most recent price was a shockingly low $3. It appears that Coleman most likely knows what he is doing, as he recently told his clients that they will be getting some cash back because the fund has grown too large after showing a 25.5 percent return so far this year.