Tiger Global buys over $1b worth stake in SoftBank

FILE PHOTO: A man talks on the phone as he stands in front of an advertising poster of the SoftBank telecommunications company in Tokyo October 16, 2015. REUTERS/Thomas Peter/File Photo

Chase Coleman’s Tiger Global Management has invested more than $1 billion in SoftBank Group Corp., according to a person with knowledge of the matter.

Tiger Global told investors in a letter that the Japanese conglomerate is trading at a steep discount to its net asset value, with its share price failing to reflect the appreciation of its assets including Alibaba Group Holding Ltd., said the person. The Financial Times reported the investment earlier Wednesday.

A representative for Tiger Global, which oversees about $22 billion, declined to comment.

Coleman founded the New York-based firm in 2001. He is a so-called “tiger cub,” a term coined for alumni of Julian Robertson’s hedge fund Tiger Management, where Coleman was a technology analyst. The firm has a hedge fund business and an $11 billion venture capital unit.

SoftBank’s U.S.-traded shares have been flat over the last year, gaining just 0.1 percent while the broader market has rallied. Alibaba shares have surged about 30 percent in the same period.