New Delhi: Tiger Global, the largest investor in e-commerce major Flipkart, has cut its stake in in US-based e-tailer Amazon by 67 per cent in the quarter ending March 2016. Amazon was the hedge fund's second largest investment.
As per regulatory filings, the hedge fund and asset management company has cut its exposure to 1.04 million shares worth $619 million (Rs 4131 crore approx) as of March 31, down from 3.19 million shares worth $2.16 billion (Rs 14,400 crore approx) as of December 31.
The pullout by the Singapore-based hedge fund from Flipkart, however, was not solitary. Tiger Global also cut stake in Chinese e-commerce firm JD.com by 25 per cent. It also dissolved its minority stake in Alibaba completely.
Tiger Global, which manages $20 billion (Rs 1.3 lakh crore) in assets, had picked up 2.44 million shares for about $1 billion in September last year.
The hedge fund however lost 22 per cent in the first three months of this year, as Amazon shares dipped by 12 per cent during the period.
However, Amazon stocks have risen phenomenally since then on the back of strong financial results and record profits.
Flipkart, Amazon’s biggest rival in India, also faced a slew of markdowns from its mutual fund investors Fidelity and Valic which cut their holding in the company by 24 per cent and 12 per cent respectively in the previous quarter.
