Could Surge in Hedge Fund Venture Investments Lead to Next Bubble?

June 12th, 2015
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A sudden surge of venture capital investments by hedge funds, mutual funds and other non-traditional venture capital sources has some experts concerned over the possibility of a new tech bubble.

According to Yahoo Finance, several hedge funds, such as Chase Coleman’s Tiger Global Management, Lee Ainslie’s Maverick Capital and Philippe Laffont’s Coatue Management, are contributing to the surge which has seen investments by non-traditional funds increase by 167 percent to more than $6 billion in just the first quarter (as reported by CB Insights). According to Yahoo Finance, several hedge funds, such as Chase Coleman’s Tiger Global Management, Philippe Laffont’s Coatue Management, Lee Ainslie’s Maverick Capital are contributing to the surge which has seen investments by non-traditional funds increase by 167 percent to more than $6 billion in just the first quarter (as reported by CB Insights). Tiger Global and Coatue Management are by no means new to the technology space, as both funds are regularly ranked among the top funds on HedgeTracker’s Top TMT Hedge Fund List.

Mutual funds, such as Fidelity Investors and T. Rowe Price are also putting their heft behind large investments in private startups. This new influx of capital, along with the increase of traditional venture capital investment, is having the effect of driving up the valuations of these startups with many quickly eclipsing the $1 billion mark in their early stages. As the market for new public offerings remains cool, some fear that the lack of intrinsic value and liquidity in these startups could trigger another collapse such as we saw with the Dot Com Bubble.
For Detailed Investor Profiles on these Investors, click below:
Coatue Capital
Maverick Capital
Tiger Global Management
Related People: Charles Wyly; Chase Coleman; David Scully (CMO); Evan Wyly; Feroz Dewan; Julian Robertson; Lee S. Ainslie; Neeraj Chandra; Philippe Laffont; Sam Wyly; Thomas Laffont
Related Entities: Coatue Capital; Coatue Offshore funds; Coatue Qualified Partners LP; Maverick Capital; Maverick Capital Long LP; Maverick Fund USA; Maverick Levered Partners; Tiger Global Funds; Tiger Management Corporation; Tiger Management Corporation*; Tiger Technology LP
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Featured Reports


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