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 took a new stake in Zillow Group Inc., which provides real estate and mortgage information, valued at about $24 million at the end of the quarter.
Amazon was Tiger Global’s second-largest public holding, after it had picked up 2.44 million shares for about $1 billion in September last year. The hedge fund however lost 22% in the first three months of this year, as Amazon shares dipped by 12% during the period.
Since then, Amazon shares has risen significantly on the back of a strong financial results and record profit in March ended quarter, resulting in the stock touching its all time high price of $720.6 on May 12.
Over the past few months, Flipkart has also faced a series of markdowns from its investors.
A T Rowe Price-managed mutual fund had marked it down by 15 per cent in April while Morgan Stanley-backed mutual fund had done so by 27 per cent in February, according to reports.
Amazon India, Flipkart and Snapdeal are currently locked in a battle for market leadership in the burgeoning Indian e-commerce sector.
The three firms have been aggressively spending billions of dollars on marketing, strengthening their supply chains and acquiring customers with predatory discounts.