Chase Coleman's Tiger Global Sells More Longtop Financial (LFT) ~ market folly

Thursday, August 6, 2009

Chase Coleman's Tiger Global Sells More Longtop Financial (LFT)

The hedge fund firm ran by Chase Coleman continues to sell shares of Longtop Financial Technologies (LFT). Tiger Global is now showing a 12.3% ownership stake in LFT with 6,313,181 shares as per an amended 13D filing. The filing was made due to activity on July 17th, 2009. When we last covered Tiger's LFT activity, we saw that they owned 14.2% of the company at that time. In the span of about two weeks (July 1st to July 17th), Tiger has sold 980,318 shares. We even covered their initial sales back in late June, so there is obviously a lot of selling going on here. What's interesting to note, however, is the fact that in this most recent filing, Tiger states that "there were no transactions by the Reporting Persons of Issuer's Ordinary Shares in the last 60 days other than the Secondary Sales described below." And then they attach this breakdown showing which fund sold shares on which date and at what price:

(click to enlarge)

(click to enlarge)

We apologize if the lists are hard to read even after enlarging them, as that is the best we could get it. Tiger has suffered a bit of a rough year so far in 2009 as their financial and REIT short positions hurt them earlier on, as detailed in their quarterly letter where they were -8.1% for the year at the end of April. A meager year thus far aside, Tiger has a great historical track record and that's why we track them here on the blog. In fact, Tiger Global is one of the hedge funds that comprises the Tiger Cub Portfolio created with Alphaclone where you can replicate their positions and enjoy 15.5% annualized returns since 2000. For more on Coleman and Tiger Global, check out their background and focus in the middle of the linked post.

Taken from Google Finance, Longtop Financial Technologies "together with its subsidiaries, provides a range of software solutions and services to the financial institutions in the People’s Republic of China (PRC), including the development, licensing and support of software solutions, the provision of maintenance, support, and other services, and system integration services related to the procurement and sale of third party hardware and software."

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