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Don’t Panic...Don’t Chase
Howard Lindzon
April 02, 2022
At our LP event last week, my first slide of my presentation was – ‘Don’t Panic and Don’t Chase‘.
It is easy to panic and easy to chase. I have done it in my career. It actually feels pretty good immediately after you do it.
A year out it looks and feel terrible.
I wrote a lot about this last year but it felt like everyone was chasing…Cathie Wood, Crypto, Tiger, SPAC’s, Growth Stocks, startups.
In February I talked about what I saw and how I felt last year on the ‘Odd Lot’s Podcast’ on Bloomberg.
This first quarter has punished the chasers but it was for the FOMO (panic) and chasing that happened in 2021.
From Bloomberg:
Tiger Global’s long-only fund sank about 36% in the first
quarter, while its Crossover fund, which invests in public and
private companies, fell about 21%, according to the letter.
“In hindsight, we should have sold more shares across our
portfolio in 2021 than we did,” the firm said. “We are
reassessing and refining our models using all the inputs
available to us.”
The firm manages $35 billion across its hedge, long-only
and crossover funds, while the rest of the assets are in its
rapidly expanding venture-capital unit. Tiger also said it
recently closed its PIP 15 venture fund with $12.7 billion.
“In this moment, we are humbled, but steady in our
conviction and confident about the go-forward opportunity,” the
firm wrote.
It is hard to have great quarters, but it is really important not to chase and panic to avoid down 30-50 percent quarters with Tiger and Cathie Woods.
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