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July 17, 2024
PI Global Investments
Hedge Funds

Lone Pine Capital Finishes 2023 on a High Note

  • Lone Pine’s flagship fund and long-only strategy made 20% and 32% in 2023, respectively.
  • The Tiger Cub has bled assets the last few years after a poor 2022 and leadership changes. 
  • It was bounceback year for both strategies, which suffered big losses in 2022.

Despite billions leaving the firm, Lone Pine Capital ended strong last year.

The Tiger Cub, founded by billionaire Steve Mandel, made 20% in its flagship, the Cypress hedge fund, and 32% in its long-only Cascade strategy, sources familiar with the fund told Business Insider. The Greenwich-based firm declined to comment.

Lone Pine — which according to media reports managed more than $15 billion at the end of the summer — needed a bounceback year after losing big in 2022. The manager was down 38% and 42% in its hedge fund and long-only strategy, respectively, last year.

The firm has faced a wave of redemptions over the past 18 months. Bloomberg reported in August that clients had pulled roughly $3 billion out of the firm in the 12 months leading up to July 2023. The leadership of the manager has also changed in recent years, starting with Mandel’s retirement in 2019 from day-to-day operations and managing director Mala Gaonkar’s departure to start her firm in 2022.

The firm’s strong 2023 performance bested the average hedge fund, which returned less than 8%, according to Hedge Fund Research. Peers like Viking Global and D1 Capital reportedly returned 14% and 4%, respectively.

Still, the flagship hedge fund strategy, which has a majority of the firm’s assets, trailed the S&P 500, fellow Tiger Cubs like Tiger Global and Coatue, and other tech investors like Whale Rock and Light Street. Hardly any firm, despite their tech-focused portfolios, came close to the Nasdaq’s nearly 54% jump, fueled by investors buying into the artificial intelligence hype.

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