By Alistair Barr
Nov 19 Tiger Global Management, a technology
focused hedge fund run by Chase Coleman and Feroz Dewan,
disclosed a big stake in Groupon Inc on Monday, a vote
of confidence for the struggling daily deal website.
Tiger Global, which oversees about $8 billion in assets,
owns 65 million Class A shares in Groupon, representing 9.9
percent of total Class A shares outstanding, according to a
Securities and Exchange Commission filing late Monday.
The purchases were made on Nov. 9, the filing said. That was
the day after Groupon reported disappointing third-quarter
results when the stock slumped. Groupon shares hit a record low
of $2.60 on Nov. 12.
Groupon shares rose 4.2 percent to $3.105 on Monday. In
after-hours trading, the shares climbed more than 4 percent to
$3.24. Tiger Global disclosed its stake after stock markets
closed on Monday.
Groupon lost more than three quarters of its value since the
company's initial public offering about a year ago as slowing
growth led many on Wall Street to question its business model.
Backing from Tiger Global suggests all may not be lost for
Coleman used to be a tech analyst at Julian Robertson's
Tiger Management, one of the most successful hedge-fund firms.
Coleman launched Tiger Global in 2001 with backing from
Tiger Global has invested in several Internet companies in
the past, including Facebook Inc and LinkedIn Corp
The firm sometimes makes these investments through its hedge
fund, but it also has venture capital funds that buy stakes in
early-stage private companies. In 2011, the firm invested in
Peixe Urbano, a start-up that competes against Groupon in South
Deutsche Bank analyst Ross Sandler said on Monday that he
recently met with Groupon management and came away feeling a bit
The company may enter a "sweet spot" between a "value trap"
and a "things are getting less worse" story, Sandler wrote in a
note to investors.