Nick Shalek's (Ribbit Capital) response to Hedge Fund capital is “there’s the short-term cycle and then there is the long-term shift that’s happening." “Fintech has been one of the shiniest objects around in recent years. Some of these investors will get spooked in the next year or two, but the bigger trend is that companies are changing their behavior and transforming how financial services are delivered.”
All three hedge funds have something else in common: They are part of a successful network of so-called Tiger cubs, managers that got their start from the billionaire trader Julian Robertson, who made his mark picking stocks. His Tiger cubs have also struck gold. Many of them have ventured away from betting on publicly listed companies to taking stakes in private start-ups. Other investment firms, too, are pouring tens of millions of dollars into Silicon Valley. Much of that money is going to companies that focus on financial technology — called fintech — which includes new ways to replace traditional banking using the Internet and automation.