Tiger Global Quits Facebook; SAC, Others Jump In

Feb 15 2013 | 2:59am ET

One of Facebook Inc.'s earlier hedge fund backers abandoned the social-networking Web site in the fourth quarter, as other hedge fund managers rushed to fill the gap.

Tiger Global Management was an early investor in Facebook, buying a stake before the company went public. And even though its shares have plummeted since its initial public offering last May, Chase Coleman's hedge fund is thought to have turned a cool $1 billion profit—or more—on the investment when it sold it off entirely last quarter.

Other prominent hedge funds went the other way on Facebook in the fourth quarter, according to Form 13F filings with the Securities and Exchange Commission. Lone Pine Capital bought nearly 11 million shares during the fourth quarter. SAC Capital Advisors boosted its relatively insignificant stake to more than 8 million shares worth more than $240 million in the quarter. D.E. Shaw did likewise, also buying more than seven million shares during the period. Omega Advisors also jumped into Facebook, buying 3.16 million shares.

Not everyone was on board with that crowd, however. JAT Capital Management didn't quite go the full Tiger Global and dump its entire 5.64 million share horde, but it did slash its holdings to just over 500,000 shares.

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