Tiger Global Management showed late Monday in a regulatory filing that it had almost entirely liquidated its 8% stake in Carvana Co CVNA during the second quarter.
The Bill & Melinda Gates Foundation, however, recognized a chance in the discounted shares of the used car company at the same time.
Tiger’s Loss Is Bill Gates Gain: According to GuruFocus, the Bill & Melinda Gates Foundation Trust picked up 520,000 shares of Carvana at the end of June, around the same time Tiger sold.
Carvana’s shares have risen 154% since June 30; if Gates purchased the shares then, he would’ve spent $11.74 million. His position is worth $29.73 million today, giving the worlds fifth-richest person and his foundation $17.99 million in profits.
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Separately, The Gates Foundation picked up 2.5 million shares of Carvana competitor Vroom Inc VRM around the same time. If Gates bought those shares at the end of June, he would’ve spent $3.12 million. The stock has risen 80% since to $2.26, giving the billionaire $5.62 million, or $2.5 million in profits.
Carvana's stock price rose to over $360 a share when the Tiger first disclosed a 5% stake in 2019. The hedge fund had more than $2 billion in the company before it started to sell, according to FactSet.
The once-favored investment was down more than 93% from its peak by late June. Tiger still holds $2.5 million of the original $2-billion investment.
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The Gates Foundation Trust holds 18 stocks with $19.77 billion in assets under management. The foundation opened its doors in 2000, and has since donated more than $79 billion to fund health care and education initiatives, among others.
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