The legend of Charles “Chase” Coleman III continued in May. The investment titan who runs $10 billion Tiger Global Managementsidestepped Facebook’s terrible stock performance and the market upheaval sparked by European elections in May unlike many other Wall Street players who got pummeled by both events.
Coleman smartly had his venture capital vehicles scoop up pre-IPO Facebook shares a long time ago and then managed to sell about one-third of his holdings, more than 19 million shares, in the May IPO for $37.6 each, collecting some $715 million. Coleman made the decision to sell some of his Facebook stock well in advance of the company’s IPO roadshow and he must have hoped the stock would perform better given his remaining big stake in the company. Nevertheless, with Facebook’s publicly-traded stock dropping near its all-time low again on Thursday morning, those shares are worth nearly 30% less today after the Facebook stock freefall. Other big financial players like Knight Capital, Citadel, UBS and Citigroup, suffered big losses in the IPO.
- Going public: Key developments in Facebook’s IPO (seattlepi.com)
- Who Likes Facebook (FB) Now? (wallstreetpit.com)
- Facebook Stock – Why it’s not another Dot-Com (optionsanimal.com)
- Weakness in Facebook Stock Adds to Pause in IPO’s – New York Times (dealbook.nytimes.com)
- Nasdaq’s Facebook IPO compensation to reach US$40-million (business.financialpost.com)