Tiger Global has whittled its exposure to stocks after a brutal start to the year - but its betting on a potato producer committed to 'potatovation', filings show
- Hedge fund giant Tiger Global is betting on: potato goods producer Lamb Weston.
- Filings show that the hedge fund invested $12.8 million in Lamb Weston on Monday, months after dumping tech stocks from its portfolio.
Hedge fund giant Tiger Global has slashed its stock portfolio amid a brutal start to the year for the market – but it's placed a new bet on an unusual venture: Lamb Weston, an Idaho-based producer of potato products.
Tiger Global opened up a $12.8 million position in shares of the potato and frozen-goods maker according to filings on Monday – an unexpected investment for a fund that's historically been laser-focused on innovative, high-growth tech names.
But that was before fund lost 52% of its value in the first half of 2022 as the tech sector took a beating, wiping away over $16 billion of its managed assets. Tiger Global dumped a number of its holdings, including Robinhood, Docusign, and Zoom, while it whittled down stakes in other tech stocks, the Financial Times reported.
Tiger's investment in public stocks is currently down to $11.9 billion from $46 billion in 2021, making its Lamb Weston stake relatively small – and unique – compared to its other holdings, which include $1.3 billion in Microsoft and $724 million in Meta.
But judging by its website, the bet on the potato firm might not be so out of character for innovation-focused Tiger Global. Lamb Weston touts a commitment to"potatovation," which it defines as a "team ideology" that encompasses its product development and operations.
Shares of Lamb Weston were down about 1% Tuesday morning, trading at $82.83. The stock has risen about 23% over the past six months.