Tiger Cubs and Hedge Funds Report Strong Double-Digit Returns in 2024, Driven by Tech Stocks and Strategic Investments"

Hedge funds overseen by protégés of the late Julian Robertson, founder of Tiger Management and often referred to as “Tiger Cubs,” delivered impressive double-digit returns in 2024, thanks in part to the stellar performance of technology stocks. This marks their second consecutive year of recovery following a tough 2022, according to a Bloomberg report.

Sources familiar with the matter revealed that Lone Pine Capital achieved a 36% return, while Tiger Global Management posted a 24% gain, and Coatue Management recorded a 19% increase. These funds were significantly helped by their investments in Meta Platforms, which was their largest holding as of September 30. Meta’s 65% surge in 2024 contributed to the broader market rally, with the S&P 500 rising by 23%, primarily driven by tech titans such as Nvidia, Apple, Amazon, and Meta itself.

The strong performance is indicative of broader trends in the hedge fund industry, especially for equity-focused strategies. These funds reported their best average returns in over a decade. According to PivotalPath, equity long-short funds delivered an average return of 14.7% through November, making this approach the top-performing hedge fund strategy of the year. The overall growth in equity markets, especially in the technology sector, significantly contributed to these results.

However, not all hedge fund success stories were tied to popular tech stocks. Contour Asset Management, a $3bn fund, posted an impressive 47.8% return, largely driven by its short positions. Despite its focus on technology, media, and telecommunications, the fund strategically avoided Nvidia and Apple, while trimming its Amazon holdings. This move allowed the firm to sidestep some of the volatility seen in the tech sector while capitalising on opportunities elsewhere.

Meanwhile, Rubric Capital, managed by David Rosen, achieved exceptional gains of 81.5%, propelled by its investment in Talen Energy. Talen, Rubric’s largest position, saw its value triple due to increased investor interest in energy companies benefiting from the rising demand for electricity from data centres. By the end of Q3, Rubric’s stake in Talen was valued at around $2bn, reflecting investor confidence in the energy sector's growth potential.

D1 Capital Partners, led by Dan Sundheim, also enjoyed strong returns, with its stock portfolio climbing 44.6% in 2024. However, public equity investments make up just 40% of the firm’s $21bn in assets, with the remainder allocated to venture capital. This diversification strategy has allowed D1 to benefit from growth across different sectors, reinforcing the importance of flexibility in today’s market. The continued expansion of its venture capital portfolio, alongside its public equity investments, positions D1 well for sustained growth in the coming years.