July 11, 2018 / 3:41 PM / in 9 months

Tiger Global buys over $1 bln stake in Japan's SoftBank - FT

July 11 (Reuters) - U.S. hedge fund Tiger Global has acquired a stake of more than $1 billion in Japan’s SoftBank Group, a stock it considers “meaningfully undervalued”, the Financial Times reported on Wednesday, citing a letter Tiger circulated to investors.

Billionaire hedge fund manager Chase Coleman’s Tiger Global said in the letter SoftBank’s shares offer a buying opportunity because they have not appreciated in nearly five years, even though the value of the company’s Alibaba stake has increased by over $90 billion.

SoftBank began investing in Alibaba in 2000. It currently holds a 29.17 percent stake in the Chinese tech giant and is its biggest shareholder, according to Thomson Reuters data.

“The combination of a world-class set of assets trading at a record discount to NAV strikes us as an odd anomaly that is unlikely to exist forever, and we have invested over $1 billion across [their hedge fund and long-only fund] to demonstrate our conviction,” the fund wrote.

SoftBank’s biggest shareholder is its founder and current chief executive officer, Masayoshi Son, who owns 21 percent in the company, according to Thomson Reuters data. (Reporting By Aparajita Saxena in Bengaluru Editing by Saumyadeb Chakrabarty)

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