10May3:07 pmEST

Crouching Tiger Fund, Hidden Systemic Risk

Tiger Global Management, a sizable hedge fund based out of New York and run by Chase Coleman, III., has been part of the buzz lately due to the drawdowns the fund has suffered. You can see their latest holdings herewhich should shed light on how aggressively they are positioned into tech and growth stocks. Hence, due to the nature of the market in 2022, heretofore, they are underwater. 

JD, their top holding by percentage of assets, below on the weekly chart looks particularly vulnerable to a fresh breakdown if the broad market cannot bottom here, as it seems a good deal of traders expect. 

But the overall trend is still lower, and the 100-point price ranges on the S&P futures is not particularly inspiring to me as evidence of a buyable major bottom. 

We do have the CPI inflation print tomorrow morning, though. Here, again, I am seeing many calls for "peak inflation" without having carefully thought out that inflation can remain sticky high for a prolonged period even after technically peaking. And that can, of course, continue to wreak havoc on the economy over time. 

So not only do we still have bonafide macro risks front and center, but if Tiger cannot get some relief soon it raises the risk of a market liquidity event, too. 

Lay of the Land And After All That...


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