Billionaire Chase Coleman Recently Exited MongoDB and has a New Stake in a Stock That's Down 40% From Its Recent IPO

In the 1990s, Julian Robertson's Tiger Management became a breeding ground for the next wave of hedge fund leaders. Many of Robertson's research analysts would learn from the legendary investor and go on to start their own hedge funds, many of which specialized in tech investing.

Chase Coleman is part of this elite group called the Tiger Cubs. His fund, Tiger Global Management, had assets of close to $30 billion at the end of 2025. In the fourth quarter, Coleman completely sold Tiger Global's position in MongoDB (NASDAQ: MDB) and revealed a new stake in a company that went public only a few months ago and is down 40% since.

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MongoDB has been swept up in the software sell-off

MongoDB is an open-source document database that enables companies to leverage data across many use cases. The company's platform can be used to deploy a multicloud database, deliver engaging search experiences, and design intelligent applications with generative artificial intelligence (AI).

Specifically, financial institutions might use it to prevent unauthorized access to customer data and gain better insights from their payment data. Healthcare companies use it to secure patient data and gain a 360-degree view of the patient's healthcare history. MongoDB also allows companies to integrate AI tools into their data sets and workflows.

While the stock has been volatile, it's still a 10-bagger since its 2017 initial public offering (IPO). Over the last six months, MongoDB saw its stock more than double, but it has given up a good chunk of those gains more recently and is still up about 63%.

The company appears to have been caught up in the software sell-off. MongoDB hit a 52-week high in early December, but then sold off as investors reassessed valuations after it started to look like new AI tools could build software more quickly and efficiently.

The good news is that MongoDB is clearly leaning into AI, but that doesn't mean it won't have more competition in the new world. The valuation may have gotten ahead of itself. Even after the sell-off, MongoDB still trades at over 61 times forward earnings and nearly 10 times forward sales.

Tiger Global was an early investor in this robo-advisor company

The automated digital wealth platform Wealthfront went public last December, raising $456 million at a $2 billion valuation, but its stock has since been hammered by about 40%. Wealthfront is a digital bank offering high-yield cash accounts and numerous ways to invest, including in retirement or college savings accounts, as well as passive strategies such as automated index investing.

The company also offers margin loans and plans to offer home lending soon. The platform differentiates itself from other online banking platforms by promoting a passive investment strategy that can be largely automated and aimed at tax efficiency.

Tiger Global Management was an early investor in Wealthfront, so it's likely the new position is carried over from the company's stake when Wealthfront was private. Most IPOs have lock-up provisions, which prevent insiders and certain investors from selling their stakes in an IPO for a certain amount of time, such as six months. Even if Tiger Global wanted to sell, the fund likely wouldn't have been able to unload its position in Wealthfront immediately following the IPO.

The stock isn't expensive, trading at about 11.5x forward earnings and 3x forward revenue. In the first nine months of 2025, Wealthfront grew revenue 19% from the same time in 2024, but pre-tax earnings remained roughly flat, due to higher expenses.

Lower interest rates have also hurt the company because its high-yield cash accounts are a big draw for new customers, and those become less attractive when rates drop. Ultimately, the company isn't in bad shape and trades at a reasonable valuation, but the digital banking space is very competitive. I'm not sure I see enough differentiation yet to view it as a compelling investment.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MongoDB. The Motley Fool has a disclosure policy.